Mayor John Whitmire released the City of Houston’s proposed $7 billion Fiscal Year (FY) 2026 operating budget, which includes a balanced General Fund. For Houston’s business community, sound fiscal management at City Hall is more than just good governance – it’s essential to maintaining the services and infrastructure that enable our region to thrive. Perhaps most significantly, this plan reduces General Fund spending – the city’s primary tax-supported budget – by 2.4%, or $74.5 million.  “We applaud Mayor Whitmire for making hard choices to put forward a balanced budget proposal,” said Steve Kean, President and CEO of the Greater Houston Partnership. “The mayor has made good on his commitment to address waste and duplication, and the Partnership is committed to working with his administration to put the City on a sustainable path, delivering the quality services Houstonians expect.”  Explore the City’s structural deficit and potential solutions in our report, State of the City’s Finances: A Deep Dive into Houston’s Fiscal Issues Facing the City. Key savings in the budget come from a combination of:  Workforce reductions: Over 1,000 city employees took advantage of the Voluntary Municipal Employee Retirement Payment Option, resulting in over $99 million in annual savings across all funds, including $29 million for the General Fund.  Operational efficiencies: Department budget reductions reached $16 million in savings.  Strategic reforms: $19 million associated with the consolidation of departments.   These efficiencies recommended in the Ernst & Young Citywide Efficiency Study underscore the city’s commitment to fiscal responsibility moving forward. The proposed budget also addresses critical public safety needs, funding the first year of a new police contract and the second year of the firefighter contract. While also providing infrastructure investments, as the budget sets aside $184 million from property tax revenue for street and drainage projects, aligning with the recent drainage settlement agreement.  During the press conference, the mayor highlighted that while this budget is balanced through efficiency and cost-cutting, the door remains open for future revenue discussions: “It would be wrong for me to say we are not going to allow Houstonians to consider a garbage fee or other matters,” the mayor said. “My responsibility is to balance the budget and provide services. I made a commitment to address waste and duplication. [Later] we will talk to Houstonians about the type of city they want to live in.” What’s next: Over the next two weeks, department directors will present their budgets in a series of workshops providing a deeper look into the FY 26 budget through Tuesday, May 20. After these sessions, City Council will review the budget, with a final vote expected in June.  

Houston is, and always has been, a city that builds. From the oil rigs that powered the 20th century to the rockets that carried us to the moon, this region has built its reputation on the ability to engineer, innovate and scale at every level of industry.  Tech manufacturing has always been a part of that story. Before Silicon Valley became synonymous with the tech boom, there was Compaq. In the 1980s and ’90s, the Houston-based company helped revolutionize personal computing, turning the region into a hub for high-tech production long before it became a national trend.   Hewlett-Packard and Texas Instruments also maintained a significant presence in the region during that era. But as manufacturing policies and global economic dynamics shifted production overseas, Houston’s momentum in tech manufacturing slowed.  Now, as the global manufacturing landscape shifts toward advanced technologies like AI systems, robotics, energy storage and digital infrastructure, some of the world’s most prominent names in tech are turning their attention back to Houston.  Want to learn more about Houston’s advanced manufacturing industry? Connect with the Partnership’s Sr. Director of Economic Development, Valerie Mathieu.   Strategic Investments  Earlier this year, Apple announced it would build a 250,000-square-foot AI-driven manufacturing facility in northwest Harris County, bringing advanced server production for its Apple Intelligence platform back to U.S. soil. The announcement is an expansion of a multi-building complex operated by Foxconn, which supplies high-tech components for global tech firms.  Nvidia, a global leader in AI computing, also recently announced plans to reshore production of its AI supercomputers to the U.S., with a new manufacturing facility in Houston in partnership with Foxconn. These high-performance systems are essential for powering the next generation of data centers.  “Nvidia’s announcement reinforces a growing trend—global companies are choosing Houston for advanced manufacturing," said Craig Rhodes, Greater Houston Partnership’s SVP of Economic Development, in a statement. “Our region has the key ingredients—a highly skilled and diverse workforce, robust infrastructure, and deep industry expertise—to scale complex projects. As demand for AI and digital technologies grows, Houston is where companies come to build the future.”  Why Houston, Why Now?  As global companies re-evaluate supply chains, the question isn’t just where to build – but where to build smart. Houston offers the full package: scalable infrastructure, a strong supply chain ecosystem and a skilled workforce ready for next-gen production.  With nearly 240,000 manufacturing workers, Houston has one of the most diverse and capable labor pools in the nation – strengthened by industry-aligned training programs at local collages and new outcomes-based funding under Texas House Bill 8.   Innovation hubs, like The Ion District, accelerate the pace from idea to market, while Houston’s logistics network – home to the nation’s busiest port for foreign tonnage and two international airports – ensure global connectivity.  Add pro-business policies, available land and lower costs than coastal hubs, and Houston stands out as one of the fastest, smartest places to grow.  Leading the Future  The latest wave of investments from Apple and NVIDIA aren’t just one-off wins; they’re a bold statement of confidence in Houston’s ability to deliver the talent, infrastructure and innovation needed to lead the next era of high-tech manufacturing.