Texas Senate Approves $336 Billion Budget for 2025-2027

The Texas Senate has approved a $336 billion budget for the 2025-2027 biennium, leveraging the state's budget surplus to fund education, tax relief, and border security while adhering to constitutional spending limits. The budget passed unanimously on a 31-0 vote and allocates more than $153 billion from general revenue, well below the $195 billion available, which is restricted by state spending caps.

Key priorities in the Senate's proposed budget include public education, with nearly 70% of the budget dedicated to health, human services, and education. The proposal includes $71 billion for the Foundation School Program, the primary source of funding for Texas' K-12 public schools. Additionally, $4.3 billion is set aside for targeted teacher pay raises based on experience and student performance. However, some education advocates argue that these increases do not go far enough to address funding gaps or teacher shortages.

Governor Greg Abbott’s (R) push for a school voucher program is also included, with $1 billion allocated to allow families to use taxpayer dollars for private schooling or homeschooling. Border security remains a top priority, with both the Senate and House setting aside $6.5 billion for the state's ongoing efforts, including Operation Lone Star. Most of this funding will go to the governor’s office, the Texas Military Department, and the Department of Public Safety. Gov. Abbott has requested $11 billion in reimbursement from the federal government for border security costs.

Property tax relief is another major component, with $6.5 billion dedicated to tax cuts. The Texas Senate plan focuses on increasing the homestead exemption, which would lower the taxable value of homes, while the House favors using the funds to reduce tax rates for school districts. Senator Joan Huffman(R), who led the budget writing efforts, stated that the investments made will address the long-standing needs of the State.

“Our economy is strong and continues to grow,” said Sen. Huffman. “We again have the opportunity to make strategic, one-time investments to address long-standing needs of our growing state, as well as return money back to taxpayers in the form of additional property tax relief”

The budget also allocates nearly $10 billion for water, energy, and broadband infrastructure, with funding for power plants, water projects, and expanding internet access to millions of residents without broadband.

The budget now heads to the House, where lawmakers are expected to debate and approve their version. If the chambers align, a final budget will be settled by the end of the legislative session in June.