Texas grows U.S. economic share most in 25 years

By AI, Created 8:41 PM UTC, June 03, 2026, /AGP/ – Texas increased its share of U.S. GDP more than any other state from 2000 to 2025, according to a new Texas 2036 analysis. The report says the state’s growth now carries outsized national importance, but future momentum will depend on infrastructure, workforce and water investments.

Why it matters: - Texas now accounts for 9.4% of U.S. GDP, up from 7.2% in 2000. - That means nearly 1 in 10 dollars generated in the American economy now comes from Texas. - Texas 2036 says the state’s economic performance increasingly shapes overall U.S. growth and prosperity.

What happened: - Texas 2036 released a new analysis on June 4, 2026, using U.S. Bureau of Economic Analysis data from 2000 through 2025. - The report, “The Texas Economic Miracle,” says Texas increased its share of the U.S. economy more than any other state over the 25-year period. - Texas grew from the third-largest state economy to the second-largest. - Among the nation’s 10 largest state economies, Texas posted the fastest long-term growth rate.

The details: - Texas increased its share of U.S. GDP by 2.2 percentage points, the largest gain of any state. - Texas posted a 5.61% compound annual growth rate, the fastest among the 10 largest state economies. - Illinois, Ohio, Pennsylvania and New York lost share of the national economy over the same period. - Jeremy Mazur, Texas 2036’s director of infrastructure and natural resources policy, said Texas’ growth stands out because the state got bigger faster than peers such as California, New York and Florida. - David W. Leebron, Texas 2036 president and CEO, said sustained growth depends on deliberate, long-term investment in infrastructure, workforce and systems. - The report concludes that water infrastructure, electric reliability and workforce readiness will be critical as population and industrial growth continue. - The analysis uses current-dollar GDP data and compares aggregate growth with state share of national GDP. - The full report and underlying data are available here.

Between the lines: - Texas 2036 is framing Texas growth as both an economic success story and a policy warning. - The report suggests recent gains may not be durable if migration slows, the population ages and workforce composition changes. - Tracy Ayrhart, Texas 2036 vice president of data and research, said those demographic shifts could weigh on whether Texas maintains its current trajectory.

What’s next: - Texas 2036 says maintaining momentum will require long-term decisions on power, water and labor force preparation. - Jeremy Mazur is available for interviews and background conversations about the report. - The report points to population and industrial expansion as the main forces that will keep pressuring state systems.

The bottom line: - Texas has become a bigger part of the U.S. economy faster than any other state, but preserving that edge will require sustained investment, not just continued growth.