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Texas House Approves $337 Billion Budget with Focus on Tax Cuts and Education

The budget allocates $51 billion for property tax relief and $134 billion for education, setting up negotiations with the Senate to finalize spending priorities.

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A row of high-density townhomes in Austin on March 23, 2025.
House Parliamentarian Sharon Carter, left, listens as state Reps: Cody Vasut, Richard Hayes, Tom Oliverson and Trey Martinez Fischer, negotiate in the Texas House on April 10, 2025.

Overview

  • The Texas House has approved a $337 billion budget for the 2026-27 biennium after nearly 15 hours of debate and over 390 proposed amendments.
  • The budget dedicates $51 billion to property tax relief, including $44.5 billion to maintain existing cuts and $6 billion for new measures aimed at homeowners and businesses.
  • A significant $134 billion is allocated to education, with $16 billion earmarked to increase teacher pay and per-student funding, alongside $1 billion for a school voucher program.
  • Lawmakers face concerns over the sustainability of tax cuts, as recent surpluses from COVID relief and inflation-driven sales tax growth are unlikely to continue.
  • The Texas House and Senate will now engage in closed-door negotiations to reconcile differences, particularly over how to allocate property tax relief and education funding.