Governor’s Budget Published

Governor Greg Abbott has released his 2026-2027 budget. The following recommendations from the Governor were made under each of the following topics:

• “Making Texas More Affordable”…recommends the Legislature
  • Return $10 billion to taxpayers this session by way of property
    tax relief.
  • Require two-thirds voter approval for all property tax rate increases at all local government entities and that all property rate elections be held on the November uniform election dates.
  • Pursue common-sense reforms to give voters more information on
    the debt propositions local governments propose.
  • Raise the Business Personal Property exemption to $100,000, to support more
    small businesses.
• “Achieving Educational Excellence” …recommends the Legislature
  • Empower Texas families by establishing a Universal Education
    Savings Account program and providing $1 billion to allow funding to follow the student to the educational setting of their parent’s choice. 
  • Invest in our teaching professionals by increasing compensation,
    including through expansion of the Teacher Incentive Allotment, and possibly a direct appropriation. I further recommend expanding access to high-quality educator preparation programs and improving teacher supports in the classrooms, particularly for new teachers.
  • Reform the special education funding system to better ensure all
    students receive needed services, including transitioning to a service intensity-based formula system, investing in the special education educator workforce, and increasing funding for evaluations.
  • Continue to protect our children by providing an additional $500 million to fund further safety enhancements to school facilities and an increase in the School Safety Allotment.
  • Expand the career preparation options available to students in high school by increasing funding for K-12 career and technical education, including through the Pathways in Technology Early College High Schools (P-TECH) and Rural Pathway Excellence Partnership programs (R-PEP), strengthening career exploration and advising programs, and investing in strategies to improve math performance.
  • Provide $18 million for TEA to increase staffing capacity for complaints and investigations to rapidly address complaints of statutory violations and inappropriate employee conduct in Texas schools.
  • Appropriate funding for the Strong Foundations program to improve access to these high-quality instructional materials and help ease teachers’ workloads.
  • Increase the charter facilities allotment for the next biennium to
    ensure Texas charter schools can meet demand with safe and secure instructional facilities.
  • Continue its support of retired teachers.
• “A World-Class Higher Education System”…recommends the Legislature
  • Fully fund the supplemental appropriations request needed to reinforce the outcomes-based funding model established by House Bill 8.
  • Fully support the formula funding recommendation made by the Texas Higher Education Coordinating Board for community colleges for the 2026–27 biennium.
  • Support the THECB’s exceptional item request on financial aid that will increase financial predictability, achieve educational portability, and sustain academic achievement for Texas students, ensuring we build a Talent Strong Texas.
  • Appropriate additional funding to support Texas State University and the University of North Texas moving to Level 1 funding to continue Texas’ trajectory of excellence in higher education.
  • Support additional resources to scale these initiatives for all Texas high school students, ensuring the next generation of Texans can choose the best Texas college or university for them to succeed.
  • Implement the recommendations of the Healthcare Workforce. Taskforce and consider making investments in the unfunded grant programs passed in SB 25 to increase the number of nurse faculty and preceptors in the state.
  • Explore opportunities to provide a reliable and stable funding source for institutions to expand master’s and doctoral healthcare professional programs in the state.
• “Supporting a Healthier Texas” …recommends the Legislature
  • Make additional investments in behavioral health services and supports for children in this state with the most complex needs.
  • Fund a new case management system to be the System of Record to improve agency operations and outcomes for the children, adults, and families served by the DFPS.
  • Continue to fully fund the Healthy Texas Women program appropriate additional funding to support the continued recruitment and retention of community attendants.
  • Continue to support the important work of the Texas Child Mental Health Care Consortium (TCMHCC) and provide appropriations to sustain its total funding level.
  • Appropriate another $18 million to support the continued access to life-saving opioid reversal medications through the successful naloxone distribution program at The
    University of Texas Health Science Center at San Antonio.
  • Invest $10 million over the biennium to maintain and enhance the successful One Pill Kills campaign.
• “Critical Investments in Energy”…recommends the Legislature
  • Fully fund all Texas Energy Fund (TEF) programs by providing an additional $5 billion to further expand and enhance grid reliability in Texas.
  • Create the new Texas Nuclear Development and Deployment Fund and appropriate funding to encourage advanced nuclear energy as well as an associated focused on
    supply chain and manufacturing needs of this emerging industry.
• “Bolstering State Infrastructure”…recommends the Legislature 
  • Leverage the expertise of UTSA (University at San Antonio) and the surrounding cybersecurity ecosystem to create the Texas Cyber Command to better anticipate cyber threats, defend against and respond to cyberattacks, and promote cyber awareness.
  • Continue to invest in the state’s water infrastructure by appropriating the largest one-time investment in state history to programs at the Texas Water Development Board (TWDB) and creating an ongoing dedicated revenue source for Texas water projects.
  • Consider the rapidly growing population and the economic needs of Texas to determine if the current funds allocated to transportation are sufficient for our thriving state.
  • Continue to fund the Port Access Account Fund and the Ship Channel Improvement Revolving Fund to allow for critical improvements to keep Texas ports competitive and spur further economic growth.
  • Approve funding for at-grade rail crossings, and to distribute such funding to local governments to enhance the safety and economic efficiency for at-grade crossings.
• “Expanding the State’s Economy”…recommends the Legislature
  • Appropriate additional state funding to Texas Movie Image Industry Incentive Program (TMIIIP) to ensure Texas remains competitive in the film industry.
  • Continue the state’s investments in recruiting the world’s top researchers.
  • Appropriate additional state funding to Texas Semiconductor Innovation Fund (TSIF) to further strengthen and solidify Texas’ leadership in semiconductor manufacturing.
  • Appropriate additional state funding to Space Exploration and Aeronautics Fund (SEARF) to strengthen Texas’ competitive edge in the rapidly growing aerospace sector and further establish the state as a global hub for aerospace innovation.
  • Reauthorize and fund the remaining six business court regions.
  • Provide an additional one-time payment beyond the statutory legacy payment to save the state money over the life of the Legacy Payment schedule.
• “Strengthening Public Safety” …recommends the Legislature 
  • Continue its funding of border security until the federal government assumes operational control to keep Texans safe and address this crisis once and for all.
  • Establish and fund a grant program administered by the Governor’s Public Safety Office that would provide local Texas law enforcement agencies with funding to install bullet-resistant windshields in their vehicles.
  • Open the Texas Law Enforcement Peer Network (TLEPN) program to additional first responders and expand its funding to meet the growing needs of those it serves.
  • Provide funding to support programs focused on recruiting high-quality applicants and retaining the brave officers that keep our communities and schools safe.
  • Consider funding technologies that expand law enforcement officers’ abilities to do their jobs safely and efficiently.
  • Consider providing funding for the State to purchase its own aviation resources to respond to future disasters.
  • Increase operational support for the Texas Veterans Commission’s (TVC) to provide the high-level quality assistance in every aspect of veteran needs, including through the impactful Veteran Entrepreneur Program (VEP).
  • Appropriate funding to ensure Texas Emergency Services Retirement System (TESRS) is on path toward actuarial soundness and becomes fully solvent.

You can read the document in its entirety with the complete details here.