Texas House approves massive $337 billion state budget

After hours of debate on the House floor overnight Thursday, the Texas House approved a $337 billion state spending plan.

The 2026-27 general appropriations bill is filed as . The House took on that bill and , the supplemental appropriations bill. The two measures will dictate how the state spends its money over the next two years. 

The House passed Senate Bill 1 at about 3 a.m. by a vote of 118-26, with 19 Republicans and seven Democrats voting against it. It now goes into negotiations as the House and Senate work to reconcile the two spending plans. After that, it will be sent to Gov. Greg Abbott, who also has veto power.

The bill funds priorities like teacher pay raises, property tax cuts, border security, medical research and a "voucher-like" private school program. Lawmakers also approved 35 amendments, including one shifting $70 million from Medicaid to a controversial program for pregnant women called "Thriving Texas Families."

House Speaker Dustin Burrows of Lubbock praised the bill’s conservative spending, saying now the House is free to focus on other policy priorities

“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,” said Burrows. “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.”

During the overnight debate, lawmakers clashed on issues such as voucher funding, crisis pregnancy center funding, and border security. 

A statement from Burrows breaks down the funding: 

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

• $16 billion below the limit on General Revenue spending

• $2.9 billion below the “Pay-As-You-Go” limit—the amount that can be spent without borrowing

• $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 , the chamber’s school finance bill
• $1 billion for school choice via education savings accounts in
• $400 million for school safety upgrades in
• $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 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
• $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

The House also approved a $12 billion supplemental budget. It includes $2.5 billion in funding for Texas water infrastructure and dedicates $924 million for wildfire and disaster response. That bill passed 122-22.

The only obligation required of lawmakers during the regular legislative session is passing a spending plan for this budget cycle, beginning in September.