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Governor’s trustee programs: $2.9 billion border security request, semiconductor grants, and VOCA shortfall flagged
Summary
The Senate heard the Office of the Governor and Legislative Budget Board lay out trustee program budget recommendations that keep border security funding steady, highlight a large semiconductor grant demand, and warn of a federal VOCA funding decline that could shrink victim services unless state funds fill the gap.
AUSTIN — The Senate Finance Committee’s trustee programs overview on Feb. 11 covered border security funding, a heavily subscribed semiconductor grants program, and concerns about shrinking federal victim‑assistance funds.
Legislative Budget Board staff told the committee recommendations include $2.9 billion in general revenue for border security — level with the 2024‑25 appropriation — and noted the trustee programs had reallocated funding between strategies for tourism, film, the Texas Enterprise Fund and other programs. LBB also reported the trustee programs requested $150.2 million for disaster funding.
Robert Black, Governor Abbott’s chief of staff, and Deputy Chief of Staff Toby Baker appeared with staff to discuss details. Black said the governor has formally asked Congress to return about $11 billion Texas spent on Operation Lone Star and that the governor would continue pursuing that reimbursement in Washington, D.C.
Baker and LBB highlighted the Texas Semiconductor Innovation Consortium and related CHIPS fund proposals. The consortium has received 66 applications requesting far more than available funding; the LBB noted four SERF grant awards totaling $21.6 million had been announced and that the consortium was oversubscribed. Texas Economic Development official Adriana Cruz said LBB‑approved awards to date totaled 948 jobs and about $17 billion in capital investment commitments; some successful projects are still under contract and more announcements were expected.
The trustee programs packet also flagged an additional late exceptional item: a $5 million request for grants to protect nonprofit institutions against violent or terrorist threats. Baker described that addition as responsive to recent threats and past funding of $2 million.
Committee members and witnesses discussed the Defense Economic Adjustment Assistance Grant (DIAG) program, which the governor’s office asked be increased by $20 million above a longstanding $30 million appropriation. Supporters said those grants help communities and installations prepare for federal base realignment and cited a strong return on investment. LBB and the governor’s office said military installations contribute roughly $150 billion annually to the Texas economy and support over 200,000 jobs.
Committee members also pressed on logistics and oversight: LBB explained the trustee programs moved $182.8 million among strategies for the 26‑27 biennium and that federal fund availability was falling because of one‑time ARPA dollars and a decline in VOCA awards. Several victims’ services providers who testified during public testimony urged the committee to add roughly $62 million to prevent a projected 10% cut to victim‑assistance services in FY26 if federal VOCA declines continue.
The governor’s office asked the committee to consider larger investments in the semiconductor fund ($698 million proposed for the CHIPS fund in the governor's exceptional items) and noted demand far outstrips current state resources. The trustee programs discussion will continue as the Senate and House reconcile the budget.
