Austin, TX – the Texas Legislature gave final approval to Senate Bill 1, the state’s budget for the 2026–2027 biennium, and House Bill 500, the supplemental budget for the current biennium. State Representative Terri Leo Wilson voted in favor of a fiscally responsible plan that strengthens Texas’ infrastructure, invests in public education and school safety, enhances border security, and delivers important resources to communities across the Gulf Coast.
“I am proud to support a budget that delivers for our families, supports our educators, and makes meaningful investments in the Gulf Coast,” said Rep. Terri Leo Wilson. “This budget reflects our commitment to conservative principles while ensuring our communities receive the resources they need.”
The 2026-2027 state budget comes $15 billion below the limit on General Revenue spending, $3.9 billion below the limit on what can be spent without burrowing, and $10 billion below the limit on tax money that can be constitutionally spent. Additionally, the budget comes in below the population plus growth rate and the pay-as you-go limit. The budget addresses critical needs and does it conservatively. Rep. Leo Wilson voted in favor of this budget even though she would have supported a more conservative budget or one that returned more taxpayer funds to provide much more property tax relief.
The Legislature passed a $338 billion all-funds budget with $157.3 billion coming from general revenue. Key highlights of the budget include:
o $51 billion which is 15% of the total budget and 128% ($11 billion) more than the previous state budget.
o Funds a $140K homestead exemption ($200,000 for seniors & disabled) and a $125,000 exemption for businesses, contingent upon voter approval in November
o Adds 6.8¢ in additional rate compression to buy down property taxes ($3 billion rate compression)
o $75 billion in total, including $8.5 billion in new, targeted education reforms and an additional $2B in recapture reduction.
o $4 billion for record teacher & staff pay raises
o $1 billion for school choice via education savings accounts
o $430 million for school safety upgrades
o $369 million to reduce the cost of health insurance for teachers
o $300 million increase in the small and mid-sized school allotment to support rural schools • Higher Education:
o $2.5 billion for Texas universities & research initiatives
o $2.3 billion to increase affordability for students & faculty through financial aid & employee health insurance cost relief
o $71million to expand first-year residency slots in medical schools
o $850 million for Texas State Technical College Endowment
o $3 billion for border security
o •$421 million to add 467+ state troopers & improve driver license services
o $411 million to expand correctional facilities
o $330 million to support local law enforcement & rural prosecutors
o $378 million to boost corrections/probation officer pay
o $174 million for judicial pay raises
o $330.8 million for rural county law enforcement
o $30 billion for road projects across Texas
o $5 billion for the Texas Energy Fund
o $2.5 billion for water & flood infrastructure
o $350 million to advance nuclear energy
o $1 billion for high-risk cybersecurity projects
o $135 million to establish the Texas Cyber Command
o $493 million to improve wildfire response & readiness
o $91 million for local & state parks
o Over $215 million for rural healthcare &grants for new ambulances
o $1 billion in wage increases for personal care attendants
o $340 million for new mental health beds, plus $54Mfor youth crisis outreach
o $252 million for women’s health
o $177 million to support victims of rape, trafficking and child abuse
o $116.5 million to keep foster kids closer to home with Community-Based Care
o $5.5 billion (All Funds) for workforce development programs
o $100 million to expand access to childcare for low-income families
o $100 million in loans & grants to support farmers & ranchers
o $300 million to expand Texas’ space industry
o $250 million to support semiconductor & microchip manufacturing
Additionally, Rep. Wilson successfully advocated for local priorities that will directly benefit Galveston and Chambers Counties:
House Bill 500, the supplemental appropriations bill, adds $13.2 billion in general revenue to address critical needs in the current biennium. This includes additional disaster response funds, border operations, and deferred maintenance at public institutions of higher education.