Stories that affect all of Texas: the Legislature, the Governor's office, state agencies, and statewide policy.
Where Your Tax Dollars Go: The 2026–27 State Budget
The Texas Legislature finalized a $338.5 billion all-funds budget for the 2026–27 biennium — the largest in state history, up from $332.9 billion originally proposed. Nearly 70% of it goes to two categories: public education and health and human services. Here's the full breakdown by budget article, per the Legislative Budget Board's final funding tables.
| Budget Article | Amount | Share | |
|---|---|---|---|
| III — Agencies of Education | $134.7B | 39.8% | |
| II — Health & Human Services | $105.7B | 31.3% | |
| VII — Business & Economic Development | $48.5B | 14.3% | |
| V — Public Safety & Criminal Justice | $19.8B | 5.9% | |
| I — General Government | $11.9B | 3.5% | |
| VI — Natural Resources | $8.1B | 2.4% | |
| VIII — Regulatory | $6.7B | 2.0% | |
| IV — Judiciary | $1.2B | 0.4% | |
| IX — General Provisions | $0.9B | 0.3% | |
| X — The Legislature | $0.5B | 0.2% | |
| Total, All Funds | $338.5B | 100% |
Inside the two biggest lines: Education's $134.7B includes $75.6B for the Foundation School Program (the main PK-12 funding formula) plus $9.1B in contingent items. Health & Human Services' $105.7B includes $82.3B for Medicaid, with the state share growing as federal matching funds decline. Article VII also covers highway construction alongside business subsidies, and roughly $6.5B statewide is earmarked for border security. The Texas Department of Criminal Justice budget grows to $9.8B, driven by correctional officer pay raises and reopened units.
