Texas House passes $337 billion budget; cutting property taxes, funding school vouchers

BRYAN, Texas (KBTX) – In the early hours of Friday morning, the Texas House of Representatives passed its version of the budget, looking to spend around $337 billion over the 2026-27 biennium.

The budget is the only bill the Texas Legislature is required to pass before the session gavels out in June.

The Senate passed its version of the budget in March, with minimal differences between the two versions.

Fast Facts:

$51 billion allocated toward property tax relief
$134 billion allocated for public education
- $7.7 billion in new funding
$1 billion for an education savings account program
$6.5 billion for border security
$400 million school safety allotment
- $1 billion total for corrections officer raises, mental health support, maternal health support
$24 billion surplus left behind

The budget passed around 3 a.m., following hours of debate and around 390 amendments filed- only 25 of which were passed.

A notable amendment that did make the cut was added by Democratic Representative Mary González, stripping funding away from the Texas Lottery Commission. A number of Governor Greg Abbott’s top legislative priorities received funding, including emergency items such as property tax relief.

“We are delivering on the basic government services that they depend on while also ensuring that we have low taxes, that we have a reasonable regulatory environment, that we make Texas a great place to work,” Travis County Representative Ellen Troxclair said.

Local lawmakers also celebrated the budget’s passage.

Brazos County Representative Paul Dyson called the budget ‘fiscally responsible,’ noting in particular investments made into the Texas A&M University System.

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State Representative Paul Dyson voted in support of Senate Bill 1, the 2026–2027 Texas state budget, praising it as a fiscally responsible, conservative blueprint that delivers real results for Texas families—without breaking the bank.

“This budget reflects what Texas does best—live within our means while investing in the things that matter,” said Rep. Dyson. “We’re cutting taxes, funding schools, backing law enforcement, and securing the border—all while staying well under our spending limits. That’s what good conservative stewardship looks like.”

The budget passed the House with broad bipartisan support and keeps Texas far below all constitutional and statutory spending caps. It includes:

● $51 billion in property tax relief, including compression and expansion of the homestead exemption

● $7.7 billion in new K-12 education funding, plus full funding for enrollment growth

● $6.5 billion for border security and law enforcement support

● $2.5 billion for critical water infrastructure, including funding to protect Texas aquifers

● $1 billion for school safety and teacher support, including raises for corrections officers and investments in maternal health and mental health services

As the representative for the home of Texas A&M University, Rep. Dyson also emphasized the budget’s forward-looking investments in energy and disaster preparedness.

“We’re funding nuclear innovation, expanding road and water infrastructure, and preparing Texas for wildfires and floods. This isn’t just spending—it’s smart investment in our future,” Dyson said.

The 2026–2027 budget also pays down $2.1 billion in state pension debt, saving taxpayers over $11 billion in interest long term.

“Texans work hard for every dollar they send to Austin,” added Dyson. “This budget proves we respect that. We’re returning more to the taxpayer, and we’re putting conservative values into action.”

Rep. Dyson also championed the bill’s bipartisan support, earned through a 118-26 vote. Seven Democrats and 19 Republicans voted against it.

“To spend over 15 hours in meaningful dialogue is a really great sign that the process is working,” reflected Representative Greg Bonnen, the bill’s sponsor in the House.

Some of the votes against the budget were a result of the $1 billion set aside in both the Senate and House versions of the budget for the establishment of an education savings account program, also referred to as school vouchers.

Others felt not enough money had been set aside for property tax relief, despite it making up around 15% of the state’s total budget. It was, however, enough for Representative Stan Gerdes, whose district stretches across Burleson and Milam Counties. In a statement, he highlighted what he called, “the largest state tax cut in American history.”

With the upper and lower chambers both passing budget bills, the next step is to assemble a conference committee.

The Lieutenant Governor and the House Speaker assemble the conference committee. In a series of private meetings, the committee will iron out the differences between the two budget bills before coming up with a unified spending plan.

Both chambers must approve the budget version put together by the conference committee in order to send it to Governor Abbott’s desk.

Governor Abbott does have line-item veto power over the budget. This means he has the ability to veto specific items and appropriations he does not want to see passed.