Despite nearly $3 billion in cuts, the state’s $78 billion budget for 2025–27 includes new funding for special education, law enforcement hiring, and homelessness services. Lawmakers prioritized core programs while delaying others, aiming to address immediate needs without tapping the state’s reserves.

Special education receives $775 million boost

The largest single new investment in the budget goes to K-12 special education. Lawmakers approved $775 million through 2027 to help school districts meet federal requirements and reduce reliance on local levies to fund services for students with disabilities.

$100 million in grants for law enforcement hiring

At Gov. Ferguson’s request, the budget sets aside $100 million in competitive grants to help local law enforcement agencies address staffing shortages. Departments can use the funds for recruitment, training, and retention.

Local housing programs get backfill funding

To prevent disruptions in homelessness services, the budget includes stopgap funding for counties facing shortfalls from declining real estate document recording fees. These fees typically support local housing and homelessness programs.

Targeted support for behavioral health and school infrastructure

The budget includes grants to expand behavioral health provider capacity and funding for school maintenance and facility repairs. It also supports programs serving foster youth and tribal education initiatives.