In April, Florida Gov. Ron DeSantis (R) and Texas Gov. Greg Abbott (R) joined U.S. Securities and Exchange Commissioner Paul Atkins to discuss the “Boom Belt” economic partnership. Chairman Atkins described these eleven southeastern states as “outpacing every other American quadrant across the measures that matter most, among them gross domestic product, population growth, job creation, foreign investment, and private market activity.”
He pointed out that capital, companies, and people all seem to be moving in the same direction, toward these states, and that “it behooves us to ask why.” Atkins’s answer: “the region’s steady adherence to first principles, including those that rigorously protect investors without needlessly paralyzing companies.” We agree.
The economic dominance of this region, led especially by Texas and Florida, did not come about by accident. It happened over the course of a multi-decade effort to make our great states destinations for businesses and families who seek an environment in which prosperity is valued and encouraged.
A key area of focus in that effort has been civil justice reform. Our recent paper found that a prolonged and hard-fought effort to reform civil litigation helped foster the thriving business climate Texas and Florida currently offer. In Texas, for example, this legislative effort goes back a half-century to the Tort Claims Act of 1969. It continued through the 20th Century and into the current millennium with medical malpractice reforms and repeated tort reform efforts, addressing areas from out-of-control damages to frivolous lawsuits.
The story in Florida is similar. From the 1986 Tort Reform and Insurance Act through a major 2023 overhaul to personal injury litigation, efforts in Florida to address everything from rising costs and insurance market instability were deliberate and ongoing.
But these states must remain vigilant, because trial Lawyer interests are actively engaged. In 2025, for example, Arnold and Itkin, one of the largest trial lawyer firms in Texas, contributed $10 million to launch the Texans for Truth and Liberty PAC. They are looking to advance their interests by spending that money in Texas elections.
The Florida Justice Association, a group fundamentally opposed to tort reform, is very active in both Republican and Democrat politics. Its PAC has given over $1 million to the Florida Democratic Party, $110,000 to the Republican House Speaker’s personal PAC, $87,000 to Florida Conservatives United, and $30,000 to Florida Strong Leadership. The PAC has made additional direct contributions to Republican candidates and other PACs across Florida, although with a particular focus on South Florida.
These efforts are starting to find some success. In Texas, the legislature has leaned heavily in recent years on using civil causes of action as an enforcement mechanism for its policy priorities. This is not facially objectionable, but it is a shift, and there should be a conversation about whether encouraging more civil litigation is the right path. Outsized judicial verdicts remain an issue, and third-party litigation financing is a problem that raises questions.
Texas and Florida need only remain dedicated to the principles that created the environment they must now protect. Unreasonably high or so-called “nuclear” verdicts can be addressed with legislation. The issues associated with third-party litigation financing can be addressed with disclosure laws.
Our paper makes recommendations to ensure that our legislatures maintain the environment that made the Boom Belt possible in the first place, and continue serving as a model for the rest of the country.
Russell H. Withers is policy director and general counsel for the Texas Conservative Coalition Research Institute. Doug Wheeler is the director of the George Gibbs Center for Economic Prosperity at the Tallahassee, Florida-based James Madison Institute.
