The state budget for 2026–2027 was submitted on Wednesday by the Texas Senate and House, respectively.
The difference between the two options is only a few billion dollars. Importantly, both versions allocate the same amount to fund a school voucher program, which most experts believe will be approved by the Legislature this year in one form or another.
According to the Senate version (Senate Bill 1), $332.9 billion will be spent overall from both federal and state sources, with around 70% of that amount coming solely from state money. A little more, $335.7 billion, is spent overall in the House version (House Bill 1). Compared to the current budget cycle, both proposals represent a reduction of more than $50 million.
Lt. Gov. Dan Patrick stated, “SB 1 upholds our commitment to Texans by continuing our state’s conservative trajectory toward increased prosperity.” SB 1’s conservative budgeting techniques guarantee that state government growth won’t exceed population growth multiplied by inflation.
The House’s budget proposal is “substantially identical” to the Senate’s, according to House Speaker Dustin Burrows.
“Debating and passing the budget will be one of the most important undertakings of the session, as it will determine the financial boundaries under which we operate when considering all other major legislation, including school choice, water infrastructure, and more,” Burrows stated.
Each version’s stated priorities include boosting financing for public safety, healthcare, and border security, as well as extending the property tax cuts that were passed during the last session and giving public education additional funds.
Importantly, $1 billion was allocated for a school voucher program in both the Senate and House versions, allowing taxpayer funds to be utilized for tuition at private schools. The expenses incurred by several states that implemented school voucher schemes have greatly beyond their initial budgets. For instance, Florida estimated that it would cost $646 million to extend its voucher program, but according to a report by the independent Florida Policy Institute, the expenses in the first year alone soared to almost $3 billion.
This tale is still in progress and will be updated.
