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Texas Senate approves $336 billion Senate budget, funds schools, health care and public safety
Summary
On March 25, 2025 the Texas Senate unanimously passed the Senate committee substitute for Senate Bill 1, the general appropriations bill, approving $336 billion in all funds and setting state priorities for fiscal 2026–27 including expanded school funding, teacher pay, Medicaid operations and infrastructure investments.
On March 25, 2025, the Texas Senate passed the committee substitute for Senate Bill 1, the biennial general appropriations bill, by a recorded vote of 31 ayes and no nays.
The committee substitute approves $336,000,000,000 in all funds and $153,500,000,000 in general revenue for fiscal years 2026–2027, and the Senate presentation said the bill is “within all constitutional and statutory spending limits.” Senator Hoffman described the measure as “the Senate version of the biennial budget for fiscal years 2026 and 2027.”
The Senate plan fronts several high-dollar priorities. The bill authorizes additional property tax relief, raises the residential homestead exemption to $140,000, and includes a $500,000,000 placeholder for business tax relief. The package provides $70,900,000,000 in all funds for the Foundation School Program, including about $5,100,000,000 for teacher compensation (of which $4,350,000,000 was described as related to prior Senate legislation, SB 26). The budget also…
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