Texas and Florida have long been the engines of the southeastern "Boom Belt," but the legal foundations that helped them outpace the rest of the country are now under pressure. At an April event, SEC Commissioner Paul Atkins joined Governors Greg Abbott and Ron DeSantis to tout the region's success, citing GDP, job creation, and foreign investment. He attributed the boom to "steady adherence to first principles," including protections for investors and limits on runaway litigation. That message resonates with conservative policy groups, but they warn that the gains are not permanent.
The economic dominance of Texas and Florida was not accidental. It resulted from decades of deliberate civil justice reform. In Texas, the effort dates to the Tort Claims Act of 1969, followed by medical malpractice caps and repeated measures to curb abusive lawsuits. Florida followed a similar path, from the 1986 Tort Reform and Insurance Act to a major overhaul of personal injury litigation in 2023. These reforms helped stabilize insurance markets and made the states attractive to businesses and families alike.
But the trial bar is pushing back. In 2025, Arnold and Itkin, a prominent Texas trial firm, poured $10 million into a new super PAC, Texans for Truth and Liberty, to influence state elections. In Florida, the Florida Justice Association—a longtime opponent of tort reform—has been active on both sides of the aisle. Its PAC has donated over $1 million to the Florida Democratic Party, $110,000 to the Republican House Speaker's PAC, and tens of thousands to other GOP-aligned groups. These efforts are already bearing fruit, with some state legislatures increasingly relying on civil lawsuits as a policy enforcement tool.
That shift is concerning, according to a recent paper by the Texas Conservative Coalition Research Institute and the James Madison Institute. The paper argues that encouraging more litigation could undermine the very environment that made the Boom Belt prosperous. It highlights persistent problems like "nuclear verdicts"—outsized jury awards—and the rise of third-party litigation financing, which can distort the legal process.
To safeguard their competitive edge, the paper recommends that Texas and Florida adopt measures to address these threats. For example, legislation could cap excessive verdicts and require disclosure of third-party funding. Such steps would preserve the predictability that businesses value, without curtailing legitimate claims.
The stakes are high. As Texas emerges as a key battleground in upcoming elections, the influence of trial lawyer money could tip the balance. Similarly, Florida's policy direction remains a lightning rod, and its legal climate is no exception. The authors stress that the region's success is not inevitable; it requires constant defense of the principles that built it.
The paper's authors, Russell H. Withers of the Texas Conservative Coalition Research Institute and Doug Wheeler of the James Madison Institute, urge lawmakers to stay the course. They argue that without vigilance, the Boom Belt could lose its luster, and the rest of the country would miss a model for economic revival.
As the 2026 elections approach, expect tort reform to be a flashpoint. The trial bar's spending is already making waves, and conservative groups are mobilizing to counter it. The outcome will shape not just Texas and Florida, but the broader debate over how to balance legal accountability with economic growth.
