For Immediate Release
July 15, 2026

Legislature Can Fully Fund Programs for Kids and Families Despite Recent Budget Instructions

Austin – This week, Texas leaders directed state agencies to include 3% cuts in their budget requests to the Legislature, with exceptions for covering enrollment in public schools, Medicaid, and other key programs. The instructions also allow state agencies to request additional funds as “exceptional items.” 

The Texas Comptroller of Public Accounts estimates fiscal year 2027 ending balances of $4.7 billion in General Revenue and $28.5 billion in the Economic Stabilization Fund. Additionally, revenue collections remain above the prior year and are tracking the biennial estimate.

Following the release of the instructions, Kathy Green, Vice President of Policy and Advocacy at Texans Care for Children, issued the following statement:

“As state agencies undertake this exercise, keep in mind that the Legislature should be able to fully fund programs for children and families during the next session. Texas has a large budget balance, and state revenue continues to come in strong. We encourage the Legislature to stand with Texas families as they face high prices from the grocery store to the gas pump.”

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