Enrolled Bill Summary

Senate Bill 1, the General Appropriations Act, as passed by the legislature, appropriated approximately $338 billion for the 2026-2027 state fiscal biennium. However, following the regular session, the governor exercised his line-item veto authority to veto Section 17.30 of Article IX of the bill, which appropriated $60 million from the general revenue fund in fiscal year 2027 to administer the implementation of the Summer Electronic Benefit Transfer program for that fiscal year. The governor also vetoed the following provisions of Article IX:

• Section 18.30, a contingency rider for House Bill 5333, which did not pass;
• Section 18.37, a contingency rider for Senate Bill 16, which did not pass;
• Section 18.44, a contingency rider for Senate Bill 249, which did not pass;
• Section 18.58, a contingency rider for Senate Bill 1361, which did not pass;
• Section 18.60, a contingency rider for Senate Bill 1413, which did not pass; and
• Section 18.77, a contingency rider for Senate Bill 2487, which did not pass.

As a result of the line-item vetoes, roughly $337.9 billion of the amount originally appropriated ultimately became law as part of the biennial state budget, of which $175 billion is for state fiscal year 2026 and $162 billion is for state fiscal year 2027. These amounts include all funding sources except interagency contracts. (Figures and percentages may not add up due to rounding.)

 Of the total amount appropriated, more than $157.2 billion, or roughly 46.5 percent, is derived from general revenue, both dedicated and undedicated. Another $100.9 billion, or 29.9 percent, represents federal funding, while the remaining $79.8 billion, or 23.6 percent, comes from other funds. The $337.9 billion budgetary total for the 2026-2027 biennium represents an increase of roughly 5.5 percent compared to the budget approved for the 2024-2025 biennium.

 Legislative appropriations for major governmental functions and services for the 2026-2027 biennium compared with appropriations for the 2024-2025 biennium are as follows, listed by budgetary article:

• Article I - General Government receives $11.5 billion, an increase of 5.58 percent;
• Article II - Health and Human Services receives $105.6 billion, an increase of 3.33 percent;
• Article III - Agencies of Education receives $126.3 billion, an increase of 27.03 percent;
• Article IV - The Judiciary receives $1.23 billion, an increase of 1.37 percent;
• Article V - Public Safety and Criminal Justice receives $19.8 billion, an increase of 4.59 percent;
• Article VI - Natural Resources receives $7.9 billion, a decrease of 7.78 percent;
• Article VII - Business and Economic Development receives $48.5 billion, an increase of 5.68 percent;
• Article VIII - Regulatory receives $6.7 billion, an increase of 625.53 percent, which includes $5 billion for the Texas Energy Fund;
• Article IX - General Provisions receives $10 billion, a decrease of 69.43 percent; and
• Article X - The Legislature receives $540.3 million, an increase of 10.31 percent.

 As part of these appropriations, the bill provides for $51 billion to be used for the purpose of maintaining and providing new property tax cuts. Additionally, the bill appropriates $8.5 billion to be used for the implementation of House Bill 2, 89th Legislature, Regular Session, 2025, which would increase state public education funding, including extra money for teacher pay raises and safety requirements.

 Except for Sections 17.30, 18.30, 18.37, 18.44, 18.58, 18.60, and 18.77 of Article IX, which do not take effect due to the governor's vetoes, Senate Bill 1 takes effect September 1, 2025.

Governor's Reason for Veto of Section 17.30 of Article IX: "As the contingency portions of this rider detail, there is significant uncertainty regarding federal matching rates for this and other similar programs. Once there is more clarity about the long-term fiscal ramifications for creating such a program, the Legislature can reconsider funding this item."

Governor's Reason for Veto of Sections 18.30, 18.37, 18.44, 18.58, 18.60, and 18.77 of Article IX: "This veto deletes a contingency rider for legislation that did not pass."