Second term (2020–2021)
Talarico defeated former Hutto city council member Lucio Valdez with 51.5% of the vote. In the 87th Texas Legislature, he was reappointed to the Public Education and Juvenile Justice Committees and appointed to the Calendars Committee. During the 87th legislative session, Talarico filed HB 54, also known as Javier Ambler's Law, and the legislature passed it. It prohibits state law enforcement agencies, except game wardens, from entering into contracts with reality TV shows that film them in the line of duty. This was in response to the role Live PD is alleged to have played in the killing of Javier Ambler by Williamson County, Texas, police. Talarico had previously criticized Sheriff Robert Chody's handling of the incident, calling for his resignation.
Talarico was the primary author of HB 30, which provides a path for minors in the criminal justice system who have been adjudicated as adults or who are eligible under the Individuals with Disabilities Education Act to earn a high school diploma instead of pursuing a high school equivalency.
Talarico introduced House Bill 41 to establish class-size limits for public school prekindergarten programs. Similar legislation, Senate Bill 2081, became law in 2021, establishing a maximum of 22 students in covered prekindergarten classes, subject to exceptions and waivers.
In 2018, Talarico was diagnosed with type 1 diabetes during a five-day stint in the ICU after a campaign event where he walked 25 miles (40 km) across his district. After his diagnosis, he paid $684 for his first 30-day supply of insulin. Talarico later helped pass House Bill 82, capping insulin costs at $25 per month. In 2021, Talarico was a joint author of House Bill 82 and one of the House sponsors of its Senate companion, Senate Bill 827. SB 827 became law, capping out-of-pocket copays for a 30-day supply of insulin at $25 for people covered by state-regulated health plans.
In the summer of 2021, Democrats in the Texas House of Representatives, including Talarico, organized a quorum break in an attempt to stop the passage of the Election Integrity Protection Act of 2021. They flew to Washington, D.C., to lobby the Senate to pass the John Lewis Voting Rights Act and the For the People Act, which would have superseded parts of the state legislation. Talarico was one of the first Democrats to return to Texas as the quorum break progressed, arguing that the effort had achieved its goals, that Democrats needed to reduce the harm of Republican legislation, and that an indefinite quorum break was unsustainable. Some representatives who remained in D.C. strongly criticized him for this. Quorum was eventually reestablished and the legislation passed. At the end of the legislative session, Texas Monthly magazine named Talarico one of the Top 10 Best Legislators.