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Texas Agencies Directed To Reduce Budgets By 3%

Texas Gov. Greg Abbott, Lt. Gov. Dan Patrick and Speaker Dustin Burrows have issued a joint policy guidance directing state agencies and institutions of higher education to reduce their base spending requests by 3% to make the state more affordable to taxpayers.

The directive is part of the leaders’ guidance for agencies preparing their legislative appropriations requests for the 2028–29 biennium. The state budget is passed by the legislature every two years. The next legislative session begins in January.

The directive requires state agencies “to demonstrate prudent stewardship of taxpayer resources through a three percent reduction in base budget requests” and reflects the leaders’ legislative and budget priorities for next year, they said in a joint statement.

The announcement comes as Abbott is touring the state promoting an affordability tour to find ways to reduce costs for Texans.

The stated goals of Abbott, Patrick and Burrows for the next legislative session, they said, is “tackling affordability concerns for Texas consumers and homeowners.” Other shared goals are ensuring the state has enough money to continue taxpayer-funded subsidies and “protect them from any base budget reductions,” they said.

This includes ensuring there is enough money in the budget for the state’s new school choice program, the Texas Education Savings Account Program, and the Foundation School Program. More than 102,000 students have been accepted to the new $1 billion TEFA program, which begins in August when the 2026-2027 school year begins, The Center Square reported.

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