The Texas Senate has introduced a state budget proposal for the upcoming biennium, featuring $32 billion allocated for property tax reductions. The bill was filed by Houston Senator and Finance Committee Chair Joan Huffman. It outlines spending of $151.6 billion in non-dedicated general revenue, which is below the estimated $194 billion revenue for 2026-2027. “The Senate’s base budget ensures that the State of Texas continues to have the strongest and most successful economy in the nation,” stated Huffman.

Including federal funds and dedicated state revenue, the proposed budget totals $332.9 billion, mirroring allocations from the 2023 budget. The plan aims to increase homestead exemptions to $140,000 and up to $150,000 for those aged 65 or older. Previous legislation raised exemptions from $40,000 to $100,000.

School choice legislation remains a priority this session following Lt. Governor Dan Patrick's November declaration. Although previous attempts failed in the House, this proposal seeks to double funding for education savings accounts without specifying allocation details yet.

Teacher pay raises are also included with a proposed budget of $4.85 billion. This includes a uniform raise of $4,000 for all teachers and additional increases up to $10,000 for rural educators.

Public safety funding would see an increase as well, particularly supporting Operation Lone Star with an allocation of $6.5 billion and hiring new DPS troopers at a cost of $400 million.

Healthcare investments feature prominently with plans to establish a Dementia Prevention and Research Institute modeled after the Cancer Prevention and Research Institute of Texas from 2007. Lt. Governor Patrick emphasized its focus on attracting leading researchers to Texas.

The Senate Finance Committee will commence hearings next week to consider funding requests from state agencies before finalizing their proposal for full Senate review.

The Senate will meet again on Friday, January 24 at 10 a.m.