Louisiana’s 2025 Comeback Agenda: A Year in Review

As 2025 ends, the Pelican Institute assesses Louisiana’s progress on its Comeback Agenda, a blueprint for prosperity rooted in limited government, free enterprise, individual liberty, and economic opportunity. 

Major Progress

On the heels of significant fiscal reforms passed in late 2024, this year brought continued progress on tax reform and notable victories to rein in burdensome regulations and help people move from poverty to independence and opportunity. 

More Tax Relief and Budget Flexibility
Following historic tax reforms enacted in 2024, the Louisiana Legislature approved two changes to the state constitution that would expand tax relief and fund competitive pay for educators. On May 16, 2026, voters will decide whether to: 

• allow parishes to reduce or create an exemption for business inventory from property taxes, bringing Louisiana more in line with other states and phasing out this punishing tax on job creators (Act 221/HB 366 by Representative Daryl Deshotel); and

• repeal three dedicated education revenue funds and apply that money to retirement debt, thereby freeing up money that public school systems can use to hire and retain high-quality teachers to serve Louisiana’s students (Act 222/HB 473 by Representative Julie Emerson).

Legal Reform to Lower Insurance Premiums

Lawmakers passed a package of bills to curb lawsuit abuse, a key driver of higher insurance premiums for Louisianans. 

• Act 15/HB 431 by Representative Emily Chenevert: Comparative fault 

• Act 16/HB 434 by Representative Jason DeWitt: No pay, no play 

• Act 18/HB 450 by Representative Michael Melerine: Removes Housley Presumption

• Act 176/HB 291 by Representative Jay Galle: Prescriptive period for wrongful death 

Regulatory Scales Tipped Back

Regulatory reform shone brightly with the passage of a new law (Act 98/SB 59 by Senator Mike Reese) requiring legislative approval for costly agency rules, as well as another law (Act 139/HB 99 by Representative Beth Billings) ending judicial deference—favored treatment—to state agencies when their regulations are challenged. 

Pacific Legal Foundation praised them as being “vital pieces of legislation aimed at reducing government waste, restoring the constitutional system of separated powers, and ensuring those accused of wrongdoing get their day in court.”  

 “One Door” Launched to Reduce Poverty and Increase Prosperity

Lawmakers approved—without a single dissenting vote—monumental legislation to overhaul the state’s safety net system and reverse the state’s standing of having one in five people living in poverty. The bills, championed by Representatives Stephanie Berault and Kim Carver (which became Act 478 and Act 477, respectively):

• begin the process of integrating safety net and workforce development programs under a single-entry point and casework management system focused on helping recipients transition to work; and
• focus the state Department of Children and Family Services exclusively on child safety and protection.

“That’s why we call it the one-door policy. Where our citizens can apply and receive assistance in moving from dependence to independence, and they’ll do it through employment.” —Governor Jeff Landry 

Lingering Challenges and Missed Opportunities

Unfortunately, these achievements happened alongside several setbacks in spending restraint, labor freedom, and bringing down electricity costs—and a big missed opportunity to help families access a great education for their kids. 

• The size of state government, as shown by Louisiana’s budget, continued to grow. Spending from the state’s general fund, fees and self-generated revenues, and statutory dedications, have continued to grow. In total, the spending of state funds only (SGF, FSGR, SD) has grown from $16,774,454,485 in FY15 to $27,338,040,623 in FY26 (up from $24,316,100,404 in the enacted FY24 budget and $25,256,184,811 in the appropriated FY25 budget). The approved FY26 budget contained more pork projects and missed chances for structural restraint despite surpluses.

• After pulling $1.2 billion out of a $3.9 billion state savings account with little public discussion and earmarking that money for more government projects, lawmakers approved nearly $136 million in “state aid to local entities”—favored projects for local government and non-governmental organizations.  
• The Senate failed to advance key bills passed by the House that would have further phased down Louisiana’s individual income tax. One news outlet reported, “Louisiana tax cuts stall over concern they’re ‘too much, too fast’ for fiscal conservatives.” But Pelican’s recent poll reveals that fiscal discipline and tax relief tops voter priorities.

• Nearly 7 in 10 voters (68%) agree state government collects and spends too much money, while 69% see it riddled with waste, fraud, and inefficiency. Only 25% of Louisianans oppose a constitutional Government Growth Limit.

• A majority 52% supports last year’s comprehensive tax reform that cut income taxes, closed loopholes, and simplified the code. One out of every two voters back eliminating the state proposal income tax entirely to let families and businesses keep more of their earnings. 

• Lawmakers also refused to adequately fund the State’s long awaited LA GATOR school choice and education freedom program. Aside from students who were already receiving scholarships through legacy programs, the appropriation funded fewer than 700 students out of nearly 35,000 who applied and were deemed eligible.  
• Labor reform stalled as opt-in union dues legislation failed to advance in a legislative conference committee in the last days of session, denying public sector workers greater choice.
• Another law was passed to increase regulations on emerging technologies, force citizens to hand over personal private information, and skirt parental rights and responsibilities. This added to a growing list of laws that have resulted in costly litigation, with the courts striking down a similar law just this week.  
• The Public Service Commission shot down a years-long effort to examine alternative electricity models that would have opened the state’s power market to greater competition and reduce rising costs for consumers.
• Lawmakers continued to incur expensive costs and forestall improved public safety outcomes through a corrections and criminal justice system that is failing to implement evidence-based, data-driven strategies.

A Chance to Deliver in 2026

Louisiana made undeniable progress in 2025, and lawmakers should be applauded for bold action on a number of fronts. However, significant work remains to achieve the full promise of Louisiana’s comeback. As America’s 250th birthday approaches in 2026, the Pelican Institute recommits to our nation’s founding principles—individual liberty, limited government, free enterprise, federalism, and economic opportunity. These ideals, turned into action as policymakers craft their agenda for next year, will make government better serve and empower Louisiana’s people and renew American exceptionalism.