
The State Budget – Are We Done Yet?
Twitter Facebook Linkedin Though the state budget is introduced early in each legislative session, it’s a bill so big it practically takes all session for lawmakers to finalize it. One
Federal dollars account for one-third of the Texas state budget.
Source: Legislative Budget Board
Federal expenditures in Texas are one and a half times as much as what our state and local government revenues pay for, combined. Federal dollars account for one-third of the Texas state budget and one-tenth of preK-12 investments.
Federal grants usually pay for one-third of the Texas state budget, the same as in most other states. Some, like Medicaid, foster care, or the Children’s Health Insurance Program require state or local dollars to be spent as “match” while others are a set amount based on state demographics. Federal aid is especially critical in state health and human services (almost 60 percent federally funded overall) and nutrition benefits (almost 100 percent federally funded).
Outside the state budget, Social Security and Medicare provide near-universal income support and access to health care for Texas seniors, while federal tax credits such as the Earned Income Tax Credit and Child Tax Credit are powerful anti-poverty tools.
Senior Fiscal Analyst, Invest in Texas
Analyst, Data & Policy
Twitter Facebook Linkedin Though the state budget is introduced early in each legislative session, it’s a bill so big it practically takes all session for lawmakers to finalize it. One
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Twitter Facebook Linkedin This week, the Texas House and Senate laid out their initial funding proposals for the 2026-27 biennium in budget bills HB 1 and SB 1. These bills