Texas House approves $337 billion budget, sets up negotiations With Senate

After a marathon session marked by sharp debate, procedural chess moves, and a fair share of late-night wrangling, the Texas House passed its $337 billion budget proposal for the 2026–2027 biennium in the early hours of Friday morning. The measure now heads to a conference committee, where House and Senate leaders will negotiate a final version of the state’s next two-year spending plan.

The House’s budget is $1.3 billion larger than the Senate’s version, which means a conference committee — made up of members from both chambers — will hash out the differences in the coming weeks.

Lawmakers approved the budget by a vote of 118 to 26, with 19 Republicans and 7 Democrats voting against it. The supplemental appropriations bill — used to cover current-year budget shortfalls — also passed.

Division in the Ranks

Four members spoke out against the bill during floor debate: Reps. Mike Olcott (R-Fort Worth), Brian Harrison (R-Midlothian), Gina Hinojosa (D-Austin), and John Bryant (D-Dallas). The two Republicans argued for more robust property tax relief than the $6 billion currently included, while the two Democrats objected to the budget’s $1 billion allocation for a proposed education savings account (ESA) program — a contentious school choice initiative that would allow public funds to be used for private education.

Despite opposition from the ideological flanks of both parties, the bill also drew bipartisan support. Rep. Donna Howard (D-Austin) defended the proposal, as did Reps. Ellen Troxclair (R-Lakeway) and Greg Bonnen (R-Friendswood), the bill’s sponsor and a leading House budget writer.

Though the $337 billion price tag is $17 billion more than the current 2024–2025 budget, it remains under the state's population and inflation-based spending cap, in accordance with the Texas Constitution.

Procedural Skirmishes

The House’s deliberation began slowly, with debate on Senate Bill 1 — the budget vehicle — delayed for hours due to behind-the-scenes negotiations. Once underway, lawmakers moved quickly to manage the flow of amendments.

Of the 393 amendments filed, more than 150 were placed on a “suspension list” and quietly shifted into Article XI — colloquially known as the "budget graveyard." Items in Article XI are rarely adopted into the final budget but can serve as placeholders for later negotiation.

One procedural bombshell came when Rep. Mitch Little (R-Lewisville) attempted to shift funds from the Office of the Governor’s Trusteed Programs to give a 6% raise to staff at the Office of the Attorney General. The move was thwarted by a point of order, after Rep. Mary González (D-Clint) amended another amendment to eliminate the same funding stream — including zeroing out funds for the Texas Lottery — in what she later described as a “technical adjustment.”

Caught off guard, many Republicans voted in favor of González’s change, unintentionally invalidating several of their own pending amendments. Retaliation followed: Republicans, including Little, successfully used the same procedural rule to knock out Democratic amendments, including one from Rep. Vikki Goodwin (D-Austin).

Social Policy and Medicaid Debates

Among the more emotional debates was funding for the Thriving Texas Families program — formerly known as Alternatives to Abortion — which passed despite Democratic resistance. Notably, three Democrats broke ranks to support it: Reps. Eddie Morales (D-Eagle Pass), Claudia Ordaz (D-El Paso), and Richard Raymond (D-Laredo).

Another familiar battle also resurfaced: the long-standing effort to expand Medicaid under the Affordable Care Act. The measure failed once again, this time on a 85–63 vote, with two Republicans, Reps. Ryan Guillen (R-Rio Grande City) and Janie Lopez (R-San Benito), joining Democrats in support.

In a rare procedural twist not seen since the 1980s, Rep. Briscoe Cain (R-Deer Park) successfully challenged multiple budget riders — not just amendments — knocking two of three from the bill. One of those eliminated a rider supporting diversity scholarships administered by the Texas Historical Commission.

What’s Next?

The House’s passage of the budget sets the stage for intense negotiations with the Senate. A conference committee will work out the differences between the two versions of the bill. Meanwhile, the Senate will take up the supplemental appropriations measure.

But for many lawmakers, the real battle is still ahead. The budget fight was just the opening round in what’s expected to be a charged legislative week focused on school finance reform and education savings accounts. A proposed amendment by Rep. Donna Howard that would have blocked further ESA funding was pulled at the last minute, as she worried it would become a "voucher test vote" — previewing the political tightrope lawmakers will continue to walk in the days to come.