- The $337.4 billion budget includes $6.5 billion in funding for border security and new funding to buy down property taxes
- A conference committee of House and Senate members will craft a final budget bill before the legislative session concludes
- Legislation for additional property tax relief is expected
After a lengthy debate that went past 3 in the morning, members of the Texas House of Representatives voted 118-26 in favor of Senate Bill 1, the state budget for the 2026-2027 biennium. A conference committee to be composed of five Texas House members appointed by Speaker Dustin Burrows and five State Senators appointed by Dan Patrick will craft a final budget bill for consideration by both chambers of the legislature.
The $337.4 billion budget was $16 billion below the limit on general revenue spending and $3 billion below the state constitution’s limit on spending from state tax revenue.
“The Texas House’s commitment to the responsible use of taxpayer money is evident in the budget we passed today. 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,” said Texas House Speaker Dustin Burrows, in a statement released immediately following passage of the budget.
Dr. Greg Bonnen, Chairman of the House Appropriations Committee, said, “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. 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.”
Key items included in Senate Bill 1 include $51 billion dollars earmarked towards property tax relief, including an additional 6.8 cents in property tax rate compression to buy down school district property tax rates. The bill also includes $6.5 billion for border security initiatives, $30 billion for road projects, and $1 billion to fund a school choice program.
Nineteen Republicans and seven Democrats voted against the bill. Several of the Republicans who voted against the budget cited a desire for increased property tax relief as the basis for the vote.
Additional property relief measures are likely to be considered by lawmakers before the legislative session concludes. Governor Greg Abbott, Lt. Governor Dan Patrick, and House Speaker Dustin Burrows have all publicly stated that property tax relief is a priority, with Governor Abbott calling on lawmakers to pass at least $10 billion in new property tax relief.
In a press conference last week, Lt. Governor Dan Patrick expressed optimism that the House and Senate would come together on a significant property tax relief package that would likely include a combination of an increase in homestead exemptions, property tax rate compression, and business tax cuts.
