Ferguson supplemental capital budget centers on housing; advocates push larger investments while local governments warn against $75M public-works sweep

The Senate Ways and Means Committee on the first meeting of the 2026 legislative session received a briefing from the Office of Financial Management on Governor Ferguson’s proposed supplemental capital budget and heard more than three hours of public testimony from housing advocates, education and higher-education representatives, tribal and rural leaders, and local-government officials.

Jen Masterson, senior budget advisor for the capital budget at the state Office of Financial Management, told the committee the governor’s supplemental proposal relies on just over $400 million in available bond capacity — including roughly $355 million left by the legislature and about $46 million in savings — and proposes $396 million in new appropriations, leaving about $5.4 million in remaining bond authority. Masterson also said the supplemental includes $68 million from the Common School Construction Account, $67 million from Climate Commitment Act accounts, and $13 million in federal funding.

Masterson emphasized housing as a central priority. "The governor's housing proposal makes up just under 40% of the total capital budget," she said, outlining a housing package with $237 million in capital investments and $225 million proposed for the Housing Trust Fund. That Housing Trust Fund…