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Show Houston the Money: Exploring the $338 Billion Texas Budget

Published Jul 10, 2025 by Jordan Overturf

Capitol Building

This year, Texas lawmakers passed a historic spending bill that increased the two-year funding total by more than $27 billion over the previous budget. A portion of that spending was included in the Supplemental Budget (House Bill 500), providing immediate funding for targeted projects. The direct impact on the Houston area over the next two years is significant:

Click here for an infographic highlighting other policy victories for the state and the city of Houston.

These targeted investments are enormous for the Houston region, but there is also much more on the horizon. On November 4, Texas voters will decide on 17 constitutional propositions, two of which could bring more funding to local communities, including:

  • Prop 4: Authorizing the legislature to dedicate $1 billion annually to the Texas Water Fund over the next 20 years
  • Prop 14: Authorizing the creation of a Dementia Prevention and Research Institute of Texas and providing $3 billion over the next 10 years

Exploring the Budget

The Partnership has updated its Budget Explorer Tool with the final version passed by lawmakers. Using this tool, you can explore topline funding by agency, specific funding for water and education programs, and search new funding projections for individual school districts. There is also a table of contents that links to appropriations for each agency. 

Here’s a quick reminder on how to read the state budget:

  • Method of Financing: From where does the money come (i.e., state, federal, or other)?
  • Strategy Funding: The highlighted funding for specific programs and targeted goals for the agency
  • Riders: This is the last section of the agency funding in the bill, and it gives specific instructions on how the dollars are to be spent.
  • Article IX: This is where you will find additional provisions on spending and revenue, as well as contingency funding. 

For more updates and alerts on the Texas Legislature, click here to sign up for our policy newsletter. 

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