In an April meeting, Florida Governor Ron DeSantis (R), Texas Governor Greg Abbott (R), and U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins discussed the economic growth of the "Boom Belt," a group of 11 southeastern states. Atkins attributed the region's lead in job creation and private market activity to policies that protect investors without paralyzing companies. The discussion highlighted the role of civil justice reform—changes to the legal system designed to limit litigation—in maintaining the region's business climate.
Texas and Florida have implemented various civil justice measures over several decades. Texas began its efforts with the Tort Claims Act of 1969 and later enacted medical malpractice reforms. Florida followed a similar path, starting with the 1986 Tort Reform and Insurance Act and continuing through a 2023 overhaul of personal injury litigation laws. These measures were intended to address insurance market instability and rising costs associated with lawsuits.
According to a report from the Texas Conservative Coalition Research Institute and the James Madison Institute, these reforms are now facing challenges from legal interest groups. In 2025, the Texas law firm Arnold and Itkin contributed $10 million to launch the Texans for Truth and Liberty PAC. In Florida, the Florida Justice Association PAC has distributed over $1 million to the state's Democratic Party and more than $200,000 to various Republican PACs and leadership funds.
The scale of the financial activity surrounding this issue is significant, with trial lawyer groups spending more than $11 million in combined contributions across Texas and Florida to influence state elections and policy. In Texas, the state legislature has recently shifted toward using civil causes of action as a tool to enforce policy priorities. Observers from the James Madison Institute and the Texas Conservative Coalition Research Institute suggest that without new legislation to address "nuclear" verdicts and third-party litigation financing, the business environment that attracted companies to the region could be altered.
The knock-on effects could influence how other states model their civil justice systems. Proponents of current reforms, including policy directors Russell H. Withers and Doug Wheeler, are calling for new disclosure laws regarding third-party litigation financing—where outside parties fund lawsuits in exchange for a portion of the settlement. The next steps involve legislative sessions where lawmakers will weigh these recommendations against the efforts of well-funded PACs. Specific dates for new legislative votes or effective dates for proposed disclosure laws were not reported.