Big South Insights

By Andy Beck
Smart Brevity™ count: 4 mins…1,087 words

👋 Welcome to Big South Insights, the biweekly dispatch from Ohio River South.

As federal policy pivots sharply under a second Trump administration, southern states are becoming more than policy laboratories—they are now power brokers.

Governors and legislatures across the region are rapidly codifying positions on immigration, artificial intelligence, trade, education, and public health. Some align with Washington’s new posture, others push forward with parallel, sometimes contradictory reforms.

• For business leaders, this means a fast-changing regulatory environment and a need for nimble strategy.

In states like Texas and Florida, GOP-led legislatures are racing to lock in permanent economic and regulatory frameworks that anticipate future volatility in Washington.

Meanwhile, Louisiana and Georgia are testing the limits of state power through legal reinterpretations, even as courts scrutinize their tactics.

• These maneuvers are signaling a long-term repositioning of southern governance—more independent, more activist, and more influential on national direction.

Texas enacts pioneering Responsible AI Governance Act

Texas passed the Responsible AI Governance Act (TRAIGA)—the first statewide legislation of its kind. The law bans government “social scoring” using AI, restricts biometric surveillance without consent, sets transparency requirements for public AI tools, and forbids use of AI to incite self-harm or criminal acts.

It also establishes a 10-member AI Council and a developer “sandbox,” and mandates annual reporting on AI use—despite a pending federal push to impose a 10-year moratorium on state AI laws.

Florida finalizes $2.25 B tax package, kills commercial lease tax

Florida’s legislature approved a $2.25 billion recurring tax package, finalizing it with a $115.1 billion budget. Highlights include:

• Elimination of the business rent (commercial lease) tax, a longstanding business cost.
• Redirecting $750 million to state reserves and $250 million annually toward debt reduction.
• A move to ask voters to increase the state’s budget-stabilization fund cap from 10% to 25% of net revenues

Georgia industries reel from 50% tariffs on steel & aluminum

President Trump’s executive order doubling steel and aluminum tariffs to 50% has disrupted Georgia’s economy. Construction firms, automakers, hospitality groups, and metal suppliers are all experiencing rising material costs (e.g., aluminum up $0.25–$0.50/lb).

While domestic smelters gain a competitive edge, many industry players are calling for tax credits and faster permitting to offset the volatility.

South Carolina limits dram shop liability, reforms legal exposure

Gov. McMaster signed House Bill 3430, reforming South Carolina’s liquor-liability (dram shop) law. Now, juries can apportion fault to nonparty tortfeasors—losing businesses can reduce liability if others share blame.

It also overhauls joint-and-several liability rules and mandates server training—marking a significant shift aimed at curbing skyrocketing insurance premiums .

• In South Carolina, Governor McMaster issued targeted line-item vetoes in the state budget after receiving roughly 80% of his funding priorities. Notably excluded: expanded arts funding and state-funded media services.

→ Governor’s Statement

• In Virginia, Governor Glenn Youngkin has vetoed 158 bills this session—more than any previous governor—blocking new gun restrictions, labor rules, and education reforms passed by the Democratic majority.

→ Washington Post Breakdown

• • In North Carolina, lawmakers passed sweeping legislation restricting ESG (Environmental, Social, and Governance) considerations in state investments and contracts. The bill prohibits state agencies and pension funds from weighing ESG factors that conflict with fiduciary duty, reflecting a growing pushback against ESG mandates in Republican-led states.

→ WRAL Analysis

Louisiana Governor Faces Ethics Charges Amid Legislative Changes

→ AP News

Tennessee Criminalizes Pro-Sanctuary Votes by Local Officials

→ Bill Text

Louisiana Debates ‘Chemtrail’ Ban Based on Emissions Tracking

→ NY Post

Georgia PSC Elections Focus on Rising Utility Bills

→ AP News

Virginia Lt. Gov. Launches ‘Axe the Tax’ Campaign for Governor’s Race

→ Fox News

Texas Enacts Labeling Law to Protect Domestic Shrimp Industry

→ SeafoodSource

➡️ Upcoming Events

• July 19-23 – Southern Legislative Conference – Birmingham, AL
• August 12 – Black Business Policy Forum – Atlanta, GA

✅ Still In Session

• Florida
  Lawmakers passed a $115.1 billion budget that includes around $2.25 billion in tax cuts, expansion of the emergency reserve fund, and various exemptions (e.g., hurricane supplies, clothes under $75). Gov. DeSantis now has until roughly late June to sign or veto, and any vetoes could trigger a special session.
• North Carolina
  The long session (first year of the 2025–26 biennium) is actively underway. The General Assembly convened January 8 and is scheduled through July 31, with regular committee hearings and floor sessions happening this week.Notably, Gov. Stein issued his first vetoes on June 20, striking down bills on permitless carry and expanded immigration detention. The legislature lacks the votes to override but may attempt. Key climate legislation (repealing the 2030 carbon-target) is also advancing through the Senate.
• South Carolina
  The official sine die adjournment occurred May 8, 2025, but both chambers remain in recess rather than dissolved and can reconvene as needed—particularly for veto overrides or budget matters—until January 12, 2026, as stipulated.Senate committees have resumed meeting this week, primarily handling remaining budget tweaks, gubernatorial vetoes, and local matters.

June 12: OMB plans to freeze over $30 billion in agency fund

The Office of Management and Budget (OMB) announced a strategy to freeze or rescind over $30 billion in authorized spending across multiple agencies (EPA, NASA, NSF, etc.), aiming to test the limits of executive control under the Impoundment Control Act. The approach is timed to coincide with the debt ceiling deadline at the end of August, making July–August 2025 a critical window as agencies scramble to identify unspent funds and OMB readies deferral/rescission packages.

June 18: Nippon Steel and U.S. Steel finalize merger agreement

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