Takeaways on the Texas House’s budget plan

AUSTIN – The Dallas Morning News reports that Texas House budget writers on Monday endorsed a $337.4 billion state spending plan for the next two years, sending it to the floor for a vote expected next week. Passing a balanced spending plan for the 2026-27 cycle, which starts in September, is the only task the Texas Constitution requires lawmakers to do during their regular biennial legislative session. After the House settles on its version of the new budget, leaders will negotiate with the Senate over key differences. The final budget bill will be sent to Gov. Greg Abbott for his signature, expected in June. Lawmakers are considering a separate spending bill that would earmark tax money still in state coffers to close out the current cycle. Some targets for that money include a $2.5 billion investment in water infrastructure and $394 million to the Texas A&M Forest Service Agency to increase the state’s firefighting capabilities with wildfire suppression aircraft.

The budget would have $6.5 billion for property tax relief, including $3 billion reserved for the additional buying-down of school-district tax compression if that passes both chambers. It includes $700 million for business tax relief. The House committee’s budget bill does not specifically earmark funding for an increased homestead exemption that is being pushed by the Senate. Budget writers included $6.5 billion to continue Operation Lone Star, Abbott’s border security mission that has cost the state $11 billion since it was created in 2021. Most of the funding would be divided between Abbott’s office; the Texas Military Department, which oversees the Texas National Guard; and the Texas Department of Public Safety, which sends troopers to the border from other parts of the state. The funding proposal includes the creation of more than 560 new commissioned officers for DPS to help with staffing problems created in the agency by Lone Star. The plan includes $386.4 million for tech updates and additional staffers for the Medicaid offices at Texas Health and Human Services to reduce snarls and wait times on applications and eligibility determinations. An additional $100 million would be used to bolster the state’s child care scholarship program, which supporters hope will reduce its 90,000-family waitlist by about 10,000.