Texas’ 2026-2027 budget remains below spending limits while delivering strategic investments
AUSTIN, Texas – Speaker of the Texas House Dustin Burrows today praised the House’s passage of Senate Bill 1, the 2026–2027 state budget authored by Appropriations Chairman Greg Bonnen. Passed with overwhelming support, SB 1 reflects a strong commitment to fiscal responsibility while supporting the continued growth of the world’s 8th largest economy. The budget remains under all constitutional and statutory spending limits, even as it delivers significant investments in property tax relief, public education, border security, infrastructure, and more.
“The Texas House’s commitment to the responsible use of taxpayer money is evident in the budget we passed today,” said Speaker Burrows. “With the leadership of Chairman Bonnen and the Appropriations Committee, the House has put forth a fiscally responsible budget that stays well within state spending limits while making smart investments in our top priorities. Now that we’ve established a strong fiscal framework, the House will soon act on key legislation—starting first with school finance and school choice—knowing exactly the resources we have in place to deliver real results for Texans.”
“I’m honored to stand with my House colleagues in passing the 2026–2027 state budget—one that reflects our shared values and upholds strong conservative principles,” said Chairman Bonnen. “Crafting a budget of this scale is no small task, but thanks to the dedication of the Appropriations Committee, collaboration with the Senate, and valuable input from Texans across the state, I’m confident this budget positions us to meet the needs of a fast-growing Texas. I appreciate Speaker Burrows’ leadership and thank every House member for ensuring Texans see real value from their taxpayer dollars.”
Highlights of Senate Bill 1, the 2026–2027 State Budget:
Budgetary Discipline
- General Revenue Spending: $153.65 billion, which is below the rate of population growth and inflation, from the state’s main discretionary account
- Total Budget: $337.4 billion in All Funds, a combination of all revenue sources—federal and state
o $16 billion below the limit on General Revenue spending
o $2.9 billion below the “Pay-As-You-Go” limit—the amount that can be spent without borrowing
o $3 billion below the constitutional limit on tax money that can be spent
Property Tax Relief: $51 Billion
- $51 billion dedicated to property tax relief, totaling 15% of the budget and 128% of the amount spent on relief in the previous biennium
- $11.2 billion more in relief from the previous biennium,including compression and contingent on the passage of other legislation
- Maintains the existing $100,000 homestead exemption and 10.6 cents rate compression
- Adds 6.8 cents in additional rate compression to buy down property taxes
Public Education
- $7.7 billion in new, targeted K-12 education funding, plus $63 billion to fully fund school enrollment, contingent on passage of HB 2, the chamber’s school finance bill
- $1 billion for school choicevia education savings accounts in SB 2
- $400 million for school safety upgrades in HB 124
- $450 million to reduce the cost of health insurance for Texas teachers
Health & Human Services
- Strategic wage increases for personal care attendants to help retain essential care workers, up to $17.50 an hour for IDD settings
- $240 million to for new mental health beds, plus youth crisis outreach
- $263 million ($469 million)dedicated to women’s health care and maternal safety
- $117.9 million to keep foster care children closer to home with Community-Based Care
- $49.8 million ($100.8 million in All Funds) for additional support for children and adults with disabilities
Border Security & Public Safety
- $6.5 billion to secure the border
- $449 million to add more than 560 state troopers and improve driver license services
- $411 million to expand correctional facilities
- $378 million to boost corrections and probation officer pay
Infrastructure & Energy
- $30 billion for road projects across Texas
- $2.5 billion for critical water infrastructure in House Bill 500
- $750 million to advance nuclear energy with the Texas Energy Fund in HB 500
- $400 million for flood mitigation in HB 500
- $100 million for local parks in HB 500
- $100 million to go toward reducing the waitlist for childcare services in HB 500
Disaster Preparedness
- Over $1 billion for wildfire response and emergency preparedness, including aircraft and support for rural volunteer fire departments in HB 500
Fiscal Stewardship
- $2.1 billion to pay down state pension liabilities, saving Texas taxpayers $11.2 billion in interest over time, in SB 1 and HB 500