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.  For more updates and alerts on the Texas Legislature, click here to sign up for our policy newsletter. 

Houston has made significant strides to improve its resilience as a coastal city over the past two decades. Federal, state and local leaders have prioritized efforts to strengthen flood mitigation, enhance power reliability and secure the region’s water supply.  Each weather event has brought important lessons, prompting investments and solutions to protect homes, businesses and critical infrastructure.  In the most recent legislative session, Texas lawmakers secured over $361 million for the Houston region to bolster water supply and advance ongoing flood mitigation projects. Targeted Funding The Legislature used nearly $1 billion in surplus dollars to secure dedicated funding for water projects around the state. The funding was included in the Supplemental Budget Bill (House Bill 500), making the dollars immediately available. The projects that receive that funding are highlighted in the General Appropriations Act and include significant funding for highlighted projects, including: $100 million for the Lynchburg Pump Station; the city had requested $177 million from the state $60 million for the Lake Livingston Dam Improvement $54 million for Cypress Ditch Regional Flood Mitigation Projects in Bellaire Click here to download the one-pager highlighting all the Houston-area resilience projects funded by lawmakers this session. Downstream Dollars Another significant change made by lawmakers this session was to make flood prevention projects eligible to receive state dollars from the Texas Water Fund. When it was initially created in 2023, the Texas Water Fund was targeted at developing new supply and addressing infrastructure. This session, under Senate Bill 7, the state will now be able to transfer available dollars from the Texas Water Fund to the Flood Infrastructure Fund for mitigation projects, like those highlighted above. This presents a significant opportunity to ensure the state maximizes its use of available funds to control how water is brought to Texans and how flooding is managed during major weather events. Dig Deeper Learn more about local victories highlighted by the City of Houston Learn why infrastructure is everyone’s business when it comes to building a resilient Houston The Budget Explorer Tool is now updated with the final version of the two-year spending bill. Click here to explore water funding Click here to explore education funding Click here to explore the 2026-27 state budget toplines   For more updates and alerts on the Texas Legislature, click here to sign up for our weekly newsletter.