Texas Could Get Its Own Currency Under New Proposal

A Texas Republican lawmaker introduced a bill on Wednesday to the state's House of Representatives that would create a new body to conduct "a thorough evaluation" of Texas' ability to launch its own currency "in the event of a collapse of the United States dollar."

House Bill 4857, proposed by State Representative Andy Hopper, would establish the Texas Fiscal Risk Management Commission, which would be required to produce a report examining the feasibility of a state-backed currency. It would also investigate fiscal transfers between Texas and the federal government.

Newsweek reached out to Hopper for comment on Thursday via the online inquiry form on his official website, outside of regular office hours.

Why It Matters

A number of Texas officials have long argued that the state contributes more to the federal government than it receives in return. A recent analysis by the financial website MoneyGeek, published last month, found that out of all 50 states, Texas ranked 34th in terms of dependence on federal funding. In 2020, Texas Comptroller Glenn Hegar told The Texan that he was "concerned that Texas continues to be a donor state."

A clearer understanding of the balance between what Texas contributes to and receives from the federal government could provide supporting data for those advocating for Texan independence, who argue that the state could sustain itself as a republic, as it was between 1836 and 1845.

What To Know

The proposed legislation is backed by the Texas Nationalist Movement (TNM), which backs independence for the state in a move they have dubbed "Texit.". The group's president, Daniel Miller, told Newsweek that it would "give us concrete answers on how to more closely align the operation and function of Texas with that of a self-governing independent nation."

The bill introduced by Hopper calls for the creation of the Texas Fiscal Risk Management Commission (TFMC), which would convene at least once a year to assess "the effect of federal fiscal policy on this state's economy." This would include an analysis of Texas' net fiscal contributions to the federal government.

Newsweek obtained an advance copy of the legislation, which states that the TFMC would be required to submit a biennial report to the Texas Legislature and the governor no later than September 1 of each even-numbered year.

The first of these reports must also "include a thorough evaluation of this state's need to develop a contingency currency in the event of a collapse of the United States dollar."

Additionally, if the Texas state Senate or House passes a resolution stating that "the right of local self-government has been impaired" under Article I of the Texas Constitution, the TFMC would be required to become broader in scope.

At this point they must also include "an audit to determine the total sum benefit of federal assistance to any state agency, or all state agencies" and "a detailed financial projection for the state to assume sole responsibility for each, or every, function."

The TFMC would consist of the speaker of the Texas House or a member of the House nominated by the speaker, the lieutenant governor or a member of the senate designated by them and four members of the public "who have experience with state and federal fiscal policy and budgetary analysis." The members of the public would "serve at the pleasure of the governor."

Texas nationalists recorded a number of notable victories in 2024. In November, 10 Republicans who had signed the TNM's 'Texas First Pledge,' committing them to support a referendum on Texan independence, were elected to the state legislature.

In June, the Republican Party of Texas included a referendum on Texas independence as part of its 2024 Legislative Priorities and Platform document. It would ask whether Texas "should reassert its status as an independent nation."

What People Are Saying

Speaking to Newsweek TNM leader Miller said: "The Fiscal Risk Management Commission addresses a critical component of the TEXIT process by clearly quantifying the gap between how Texas currently operates and independence. The results of this committee will give us concrete answers on how to more closely align the operation and function of Texas with that of a self-governing independent nation.

"Whether you're for or against TEXIT, this legislation deserves the support of every Texan. It's simply about Texans having the hard data needed to make informed decisions about our future and plan accordingly. No matter where you stand politically, knowing the true financial relationship between Texas and Washington benefits every Texan."

What Happens Next

To become law, Hopper's bill would need to pass both the Texas House and Senate, which are Republican-controlled, before being signed by Republican Governor Greg Abbott.

At this stage, it remains unclear how much support the proposal has within the Texas Legislature.