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Texas Gubernatorial Candidate Gina Hinojosa Calls for Data Center Moratorium

Texas gubernatorial candidate Gina Hinojosa proposed a moratorium on data centers and a repeal of their tax breaks during a Sunday interview on 'Face the Nation.'

Published October 25, 2026 at 11:35 AM EDT

The short answer

Gina Hinojosa proposed a moratorium on data centers, the repeal of data center tax breaks, and highlighted her plans for public school funding and Medicaid expansion.

Texas Gubernatorial Candidate Gina Hinojosa Calls for Data Center Moratorium

The Facts

Who
Texas State Representative and gubernatorial candidate Gina Hinojosa (D-Austin)
What
Gina Hinojosa proposed a moratorium on data centers, the repeal of data center tax breaks, and highlighted her plans for public school funding and Medicaid expansion.
When
Sunday, October 25, 2026
Where
Austin, Texas
Why
Hinojosa argued that data centers are moving into rural areas without sufficient zoning or community input, affecting water and electricity costs, and stated that public schools are struggling due to funding cuts linked to school voucher legislation.

Texas State Rep. Gina Hinojosa (D-Austin), a candidate for governor, stated on Sunday that she would seek an immediate moratorium on data center construction and the repeal of associated tax breaks if elected. During an interview on CBS News' "Face the Nation," Hinojosa argued that hyperscale data centers are currently moving into unincorporated rural communities without sufficient zoning or legal protections, leading to concerns regarding water usage, electricity costs, and property rights.

The proposal follows a 20-year tax break incentive provided by Governor Greg Abbott (R) intended to make Texas a center for artificial intelligence development. Hinojosa's platform, which she described as a "populist agenda," also includes a focus on public school funding and health care access. She reported that 181 Texas school districts are currently operating only four days a week, a situation she attributed to the withholding of state funding during a 2023 legislative dispute over school vouchers.

Regarding health care, Hinojosa stated she intends to ensure every child in Texas has access to quality care, noting that the state has the highest number of uninsured children in the country. While she confirmed she supports expanding Medicaid, she said she is not explicitly running on that specific terminology because she believes voters better understand the concept of child health care access. She also proposed banning "bad faith denials" by insurance companies to assist those who already have coverage.

For Texas families and students, the funding debate involves at least $1 billion that Hinojosa says was redirected from neighborhood public schools toward private school vouchers. With 181 districts already operating on shortened four-day weeks, students and teachers would see changes in their weekly schedules or resource levels depending on future funding decisions. In health care, Medicaid expansion could affect a portion of the state's uninsured population, which currently includes more children than any other state, though the candidate did not report specific per-household savings or the exact number of people who would gain coverage under her plan.

The next steps for these proposals depend on the outcome of the gubernatorial election and Hinojosa’s ability to work with a state legislature she acknowledged would likely remain under Republican control. She is also currently pursuing a lawsuit to obtain emails between Governor Abbott and Elon Musk regarding a $100 million broadband contract and the potential sale of Boca Chica Beach to Musk for rocket launches. Further details on these initiatives or the specific dates for legislative action were not reported.

Timeline of what happened

Key dates and decisions, in the order they occurred.

  1. January 1, 2023

    Funding dispute over school vouchers

    Hinojosa reports Gov. Abbott withheld school funding following a dispute over vouchers.

  2. July 7, 2026

    Campaign event at Eldorado Ballroom

    Hinojosa speaks at a campaign event in Houston with Letitia Plummer.

  3. October 25, 2026

    National television interview aired

    Hinojosa outlines her platform on 'Face the Nation.'

Summaries are written by The Plain Record to state the facts of a story plainly and without political slant. Drafted with AI assistance and checked against the source record before publication. See how we report, or report a correction.

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Questions readers ask

What happened: Texas Gubernatorial Candidate Gina Hinojosa Calls for Data Center Moratorium?

Gina Hinojosa proposed a moratorium on data centers, the repeal of data center tax breaks, and highlighted her plans for public school funding and Medicaid expansion.

Who is involved?

Texas State Representative and gubernatorial candidate Gina Hinojosa (D-Austin)

When did this happen?

Sunday, October 25, 2026

Where did this happen?

Austin, Texas

Why does this matter?

Hinojosa argued that data centers are moving into rural areas without sufficient zoning or community input, affecting water and electricity costs, and stated that public schools are struggling due to funding cuts linked to school voucher legislation.