Texas’ $338 billion budget: Here’s why you should care
Within the next two years, teachers statewide are in line to get a pay raise and a significant expansion in merit-based compensation for both teachers and principals. Wildfire response crews may be outfitted with the equipment they need ahead to protect their communities. A Texas town could be closer to a plan to prevent a catastrophic disruption in their water service. None of these may make headlines, but all of them are on the way to happening because of decisions made in the budget just passed by the Texas Legislature.
The 2026–27 state budget, totaling $338 billion, is more than just 1,000 pages. It’s a reflection of what Texas values and what it’s preparing for over the next two years.
With more than 1,500 new residents arriving every day, lawmakers faced a challenge familiar to many Texans: how to grow without losing what makes this place work. The result is a budget that balances long-term investments with fiscal responsibility. That includes new funds for teacher pay raises, water infrastructure, wildfire preparedness, plugging abandoned oil and gas wells, and a great deal more.
Whether you live in Lufkin or Laredo, Pampa or Port Isabel, the state budget shows up in ways you might not notice at first. It’s in the resources your local school district receives, or the training available at your nearby community college.
The importance of planning ahead
As someone who spends a lot of time testifying before legislative committees and reading line items most people will never see, I’ll tell you what stood out this session: Lawmakers didn’t just focus on today’s needs. They planned ahead.
They set aside funds for the creation of Texas Cyber Command to keep our state’s IT systems and publicly held data secure in a fast-changing digital world. They approved investments in space exploration and advanced nuclear energy. And they made meaningful investments in higher education, including full funding for community college finance reform and support for career-ready programs that prepare students for good-paying jobs right out of high school.
And water, a lifeline in every Texas community, was one of the biggest winners. Lawmakers approved $1.7 billion in new funds, with the possibility of an additional $1 billion a year for 20 years if voters approve a proposed constitutional amendment this fall. That could transform aging and deteriorating water systems across the state and ensure we have the water supply needed in our drought prone state.
At Texas 2036, we supported responsible, strategic, forward-looking investments this session, given the healthy revenue outlook. The final budget reflects that kind of thinking — smart spending today that builds a stronger Texas tomorrow.
The Texas Comptroller has certified the budget. Now, as the Governor reviews the budget and voters weigh in on related proposals on the ballot this fall, Texans have a continued role to play. Budgets aren’t just about numbers, they’re about priorities. And the more Texans pay attention and engage, the better these priorities will reflect the future we all want to build.