Public Policy
Show Houston the Money: Exploring the $338 Billion Texas Budget
7/10/25
This year, Texas lawmakers passed a historic spending bill that increased the two-year funding total by more than $27 billion over the previous budget. A portion of that spending was included in the Supplemental Budget (House Bill 500), providing immediate funding for targeted projects. The direct impact on the Houston area over the next two years is significant:
$1.22 billion in new programmatic funding for 47 school districts around the Houston region
$1.17 billion across local medical schools
Nearly $362 million in dedicated funding for flood prevention & water supply projects
$135 million for regional operational centers for the Texas Department of Emergency Management and other emergency operations
$12.8 million for upgrades to the Harris County Psychiatric Hospital
Click here for an infographic highlighting other policy victories for the state and the city of Houston.
These targeted investments are enormous for the Houston region, but there is also much more on the horizon. On November 4, Texas voters will decide on 17 constitutional propositions, two of which could bring more funding to local communities, including:
Prop 4: Authorizing the legislature to dedicate $1 billion annually to the Texas Water Fund over the next 20 years
Prop 14: Authorizing the creation of a Dementia Prevention and Research Institute of Texas and providing $3 billion over the next 10 years
Exploring the Budget
The Partnership has updated its Budget Explorer Tool with the final version passed by lawmakers. Using this tool, you can explore topline funding by agency, specific funding for water and education programs, and search new funding projections for individual school districts. There is also a table of contents that links to appropriations for each agency.
Here’s a quick reminder on how to read the state budget:
Method of Financing: From where does the money come (i.e., state, federal, or other)?
Strategy Funding: The highlighted funding for specific programs and targeted goals for the agency
Riders: This is the last section of the agency funding in the bill, and it gives specific instructions on how the dollars are to be spent.
Article IX: This is where you will find additional provisions on spending and revenue, as well as contingency funding.
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