Texas has made its boldest move yet to reclaim its cinematic legacy—doubling down on its production incentive program with a historic funding boost aimed at luring back filmmakers and deterring the growing pull of neighboring rivals like New Mexico and Georgia.

On Sunday, Governor Greg Abbott allowed SB 22 to become law, increasing the state’s incentive fund to $300 million over the next two years—up from $200 million—and locking in that level of support for the next decade. The move solidifies Texas as a serious contender in the national production race, elevating it into the second tier of states offering significant subsidies, just behind powerhouses like California and New York.

“We were losing Texas stories to New Mexico, Louisiana, and Georgia,” said Chase Musselwhite, co-founder of Media for Texas, one of the lead advocacy groups behind the bill. “We want to shoot them in Texas.”

Lt. Governor Dan Patrick, a longtime proponent of growing the state’s film and television industry—and a former conservative talk radio host with a personal interest in production—touted the bill as a key step toward making Texas “America’s film capital.” While Patrick initially pushed for a $500 million biennial commitment, the final figure emerged after negotiation in the House. Abbott, while not signing the bill directly, allowed it to pass into law without his signature.

With $150 million in annual funding, Texas may not yet match Georgia’s volume, but it’s sending a clear signal: the Lone Star State is open for production—and willing to pay for it.

The bipartisan push behind SB 22 drew vocal support from major Texas talent. Matthew McConaughey and Yellowstone creator Taylor Sheridan were both instrumental in lobbying lawmakers. Sheridan, whose recent Texas-shot series 1883 and Landman have showcased the state’s cinematic potential, testified last fall that production incentives have become a non-negotiable in today’s financing landscape.

“The model that these networks and these studios operate by now mandates that you have one,” Sheridan told legislators. “They cannot and will not finance a film without an incentive from a state. They will not do it.”

Sheridan also expressed regret that his Oscar-nominated feature Hell or High Water, set in Texas, was ultimately filmed in New Mexico due to the lack of incentives at the time.

Texas’ updated program, however, comes with a unique caveat. Unlike most state programs, which avoid content restrictions to steer clear of First Amendment issues, Texas maintains discretion over projects that portray the state or its people in a negative light. The policy, upheld by the 5th Circuit Court of Appeals in 2015, was cited when the state declined to fund Machete Kills, a Robert Rodriguez film critical of hardline immigration policy.

“You don’t want to help a movie get made in Texas that throws rocks at Texas or Texans,” McConaughey told a Senate committee in March. “Me neither.”

Even with growing support from lawmakers and industry players, the line between cultural pride and creative control remains a tension point. At a March hearing, State Senator Paul Bettencourt singled out Sheridan’s Landman for criticism, saying, “It’s completely wrong… Having Billy Bob Thornton f-bomb every other sentence is not Texas values.”

Still, signs point to a shifting attitude. Nate Strayer, CEO of Stray Vista Studios in Dripping Springs, believes shows like The Chosen—a faith-based hit filmed in North Texas—and Sheridan’s work have helped change the conversation.

“With stories that resonate, that fear is starting to go away,” Strayer said.

With long-term funding now secured, Texas is poised to become a regional production heavyweight—and perhaps, as Patrick envisions, a viable alternative to Hollywood itself.