Momentum has been building for some time toward the formalization of a deepened economic relationship between Texas and Israel, one rooted in trade, innovation, and long-term strategic collaboration. That momentum is now nearing a pivotal moment, as Texas prepares to announce the outcome of a competitive process to establish a formal economic presence in Jerusalem.
In November 2025, the State of Texas distributed a detailed and comprehensive Request for Proposals (RFP) to establish and operate a State of Texas Israel Office under the leadership of Governor Greg Abbott's Economic Development and Tourism Office. Submissions were due on January 6, 2026 and state officials are expected to announce the outcome in the coming days.
State leaders and business advocates describe the initiative as a natural extension of an already robust relationship between what many have dubbed "the two Lone Star states" each known for resilience, innovation, and an outsized role in their respective regions.
Texas currently operates two state-run trade offices in Mexico and Taiwan. A Jerusalem-based office would mark Texas' first permanent economic outpost in the Middle East and would serve not only Israel, but potentially countries in the region tied to Israel through peace treaties and the Abraham Accords.
On the decision to establish the new office in Jerusalem, Fleur Hassan-Nahoum, Israel's special envoy for innovation on Israel' foreign ministry and former deputy Mayor of Jerusalem praised the announcement. "For Texas, to open a business office in our nation's capital in Jerusalem is a gateway decision, placing the world's eighth-largest economy at the center of one of the most dynamic innovation ecosystems on the planet."
"The momentum behind a Texas Israel office builds on proven demand," she added. "This is about accelerating what already works, while strengthening America's economic diplomacy by linking U.S. enterprise directly with Israel's capital of innovation, governance, and global connectivity."
Economic strategy, not symbolism
While the Texas Legislature's resolution supporting the initiative includes strong language affirming Jerusalem as Israel's capital, those aware emphasize that the effort reflects a long standing relationship between Texas and Israel and will fundamentally be economic in nature.
Massey Villarreal, former Chairman of the Texas Association of Business, said the initiative reflects Texas' commitment to Israel and its focus on competitiveness and global market access. With a $2.7 Trillion GDP, Texas is poised for further expansion.
"Texas has always been pragmatic about growth," Villarreal said. "This is about building durable trade and investment channels with one of the world's leading innovation ecosystems. Israel is not just a partner, it's a multiplier. We look forward to bringing the startup nation to the scale up state."
Trade between Texas and Israel already hovers around $4 billion annually, driven by activity in defense, cybersecurity, energy, water, semiconductors, and advanced manufacturing.
A central figure in translating policy into execution is David Yaari, CEO of the Texas Israel Partnership, who has been actively coordinating with partners across government, industry, and the innovation ecosystem.
"Texas has built the fastest-growing economy in the United States across multiple sectors," Yaari said. "What makes Texas exceptional is not just scale, but the way dynamic partners across the state work collaboratively to drive growth."
That collaborative ecosystem, Yaari noted, already includes several active Texas Israel players: the Israeli American Council, led in Texas by Shelly Shwartz, with a strong statewide presence; Jewish National Fund centered in Dallas under Ellie Adelman; the Texas-Israel Alliance under Chairman Doug Deason; and strong Jewish federations throughout the state, including Shalom Austin in Texas' capital.
This civic and communal infrastructure is complemented by highly coordinated state-level economic development agencies which include the Texas Governor's Office of Economic Development and Tourism, led by Adriana Cruz, alongside the Texas Economic Development Corporation, headed by Aaron Demerson; the Texas Economic Council; the Texas Association of Business, the State Chamber of Commerce; and a network of strong regional chambers across the state.
"One measure of a strong economic environment is demand - namely how many people are moving in versus how many are moving out," Yaari said. "More than 1,200 people a day are moving to Texas. The coasts are coming to Texas. Israelis are moving to Texas. The state is a fertile ground to scale Israeli innovation."
Binational innovation already in motion
In a recent interview Anat Ben Yosef, director of the Southern Region of the BIRD Foundation said the growing institutional framework reflects what has already been happening on the ground for years. Ben Yosef noted that the BIRD Foundation is a binational program supporting joint US-Israel technology ventures with presence throughout the United States.
"Texas has become an important gateway for Israeli companies entering the U.S. market," Ben Yosef said. "Through BIRD, we've seen successful collaborations in cybersecurity, energy, robotics, and artificial intelligence, where Israeli innovation meets Texas scale."
She added that Texas' regulatory environment, market size, and openness to foreign direct investment have made it a natural anchor for binational R&D and commercialization efforts.
Opportunities extend beyond startups and operating companies into capital markets and policy engagement.
Eli Groner, former Director General of Israel's Prime Ministers office and former Economic Attaché to the United States, said a formal Texas Israel framework could unlock new pathways between financial centers.
"Texas and Israel share a pragmatic, execution-oriented economic culture: strong technology ecosystems, deep capital pools, and a bias toward real-world problem solving," noted Groner. "There is real opportunity in practical bridges that connect Israeli innovation with Texas's scale, capital, and operating depth in ways that create durable economic value on both sides."
"There is real potential for collaboration between the Tel Aviv Stock Exchange and the new planned Texas Stock Exchange in Dallas," Commissioner Grant Moody said. Representing Bexar County, which encompasses San Antonio, Moody recently returned from an eye opening economic focused delegation to Israel.
"In looking ahead to 2026, I see opportunities around dual listings, cross-border investment, and institutional cooperation that can benefit companies on both sides and I hope to welcome Israeli companies to San Antonio and Bexar County," added Moody.
Exposure at the policy level is also growing. Villarreal cited an important bipartisan delegation of Texas legislative leaders to Israel which he led under the Texas Association of Business. "We partnered with iTrek and David Yaari to make that trip happen," Villarreal said. "There is real interest in expanding these delegations and deepening legislative, business and university leaders' familiarity with Israeli innovation".
A natural partner
Israeli officials echo that assessment. Sharren Haskel, Israel's Deputy Foreign Minister, said her recent visit to Texas reinforced her commitment to this alignment.
"Texas is a natural partner for Israel on every level, economic, strategic, and cultural," Haskel said. "The depth of engagement we are seeing reflects shared values and shared ambition.
"In Israel we will never forget Governor Abbott's immediate solidarity visit to Israel following the tragic events of October 7th," Haskel continued. "That visit, and many solidarity missions from legislators and community leaders are deeply etched in our national memory. The establishment of this new commercial office is a meaningful continuation of that warm friendship."
As Texas prepares to announce the outcome of the RFP process, stakeholders on both sides stress that success will be measured in results, investments, partnerships, and sustained economic growth. For many involved, the forthcoming decision represents not the start of a relationship, but the formal institutionalizetion of one that has been years in the making.
