Federal dollars account for one-third of the Texas state budget.
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.
Millions of homeowners and renters in Texas share major housing affordability concerns, with 84% of Texans saying they are either very concerned or somewhat concerned about the cost of housing.*
The 2026-27 state budget provides for $150 billion in general revenue spending, including $51 billion in property tax cuts. Those large, permanent tax cuts are only made possible by historically
Millions of homeowners and renters in Texas share major housing affordability concerns, with 84% of Texans saying they are either very concerned or somewhat concerned about the cost of housing*.
Texas is home to the second-highest number of data centers in the United States, with 335 data centers currently operating and 248 more in development, according to recent Texas Tribune