Relating to the grant program distributing money from the transportation infrastructure fund.

HB 263 amends Texas law to change how transportation infrastructure grant funds are distributed to counties. It increases the share based on oil and gas production taxes from 15% to 20% and raises the allocation for horizontal well completions from 40% to 45%, while maintaining other metrics like weight tolerance permits (10%), oil/gas waste injection volume (10%), and vertical well completions (15%). Counties receive funding based on specific, measurable data from the Texas Department of Motor Vehicles, Comptroller, and Railroad Commission of Texas. This bill directly affects all Texas counties applying for transportation infrastructure grants, with the changes taking effect September 1, 2025.