Texas delivered a win for worker freedom last week when Gov. Greg Abbott signed a new law that directs state agencies to take critical steps toward alleviating the incredible burden that licensed professionals face when they move to the state—including having to spend time and money to re-qualify to work.
Sponsored by House Speaker Dade Phelan—with the support of the Coalition for Regulatory Efficiency and Reform, the Goldwater Institute, and other stakeholders—House Bill 11 sets a clear goal for Texas licensing agencies to implement occupational licensing reciprocity agreements with other states that uphold comparable licensing standards. This long overdue step moves Texas toward dismantling the state’s bloated licensing bureaucracy and lays the groundwork for the state to adopt even more licensing reciprocity going forward.
Despite being renowned for its booming economy and longstanding commitment to freedom, Texas has one of the most burdensome occupational licensing systems in the country, with 858 license types reported in 2024 alone. With 600,000 new residents entering the state each year, many incoming professionals who hold valid licenses from other states—often with similar standards—must navigate a complex and costly maze to re-qualify to work in Texas. Forcing them to undergo duplicative education, training, and fee payments creates unnecessary barriers to employment, delaying their contribution to the Texas economy and undermining their ability to support their families.
Why Reform Is Needed
While politicians of all stripes talk of the need to “create more jobs,” about one in four jobs in America requires an occupational license—a government permission slip to work. These licenses are expensive, demand time-consuming training, and are subject to requirements that vary from state to state. When a licensed professional moves to a new state, they often have to go through the costly licensing process all over again, and that’s an unnecessary barrier for countless Americans to earn a living.
That’s why the Goldwater Institute developed the Breaking Down Barriers to Work Act, which allows for universal recognition of occupational licenses. It’s already law in over half the states, with more to come. In Arizona alone, more than 10,000 professionals have been granted licenses to work under the law since its enactment in 2019.
Texas Takes Important Step
In Texas, the enactment of HB 11 represents meaningful progress in the movement toward worker freedom and breaking down barriers to work. The new law compels Texas licensing agencies to take concrete, measurable steps toward accepting occupational licenses from other states. That includes mandating that each agency establishes a clear objective of increasing reciprocity agreements, actively work to forge these agreements with states that maintain comparable standards and submit a report every two years to the legislature documenting their progress and ensuring transparency.
Looking Ahead
Although the passage of HB 11 is cause for celebration, the work is far from over. The implementation of this bill will be crucial, requiring licensing agencies to actively engage with their counterparts in other states while reexamining and modernizing their own licensing requirements. The biennial reports mandated by HB 11 will provide valuable insights into the progress being made and highlight where further reforms may be needed.
Texas has taken an important step toward unlocking greater economic opportunity and becoming an even more attractive destination for skilled professionals. By embracing the principles of reciprocity, Texas leaders have signaled that their state values talent over regulations and bureaucracy.
Jen Springman is Coalitions Manager at the Goldwater Institute.
