“With a record balance in the Rainy Day Fund, a conservative approach to budgeting should keep us well-prepared to fund essential priorities, support growth and respond to future needs as directed by the Texas Legislature.”
Texas Insider Report: AUSTIN, Texas – Acting Texas Comptroller of Public Accounts Kelly Hancock recently informed Gov. Greg Abbott and the Texas Legislature that the Biennial Revenue Estimate (BRE) for fiscal years 2026–27 remains unchanged, with $3.1 billion available for general-purpose spending through Aug. 31, 2027. This update, required by the Texas Constitution, was provided ahead of the First Called Session of the 89th Legislature, which convenes today.
The estimate accounts for updated costs from legislation passed earlier this year, including supplemental appropriations in House Bill (HB) 500, certain claims and judgments in HB 4486 and full biennial funding in Senate Bill 1.
“Texas' revenue estimate is holding steady,” said Hancock, who assumed the responsibilities of Acting Comptroller effective July 1. “With a record balance in the Rainy Day Fund, a conservative approach to budgeting should keep us well-prepared to fund essential priorities, support growth and respond to future needs as directed by the Texas Legislature.”
The Economic Stabilization Fund (Rainy Day Fund) is estimated to be $28.5 billion at the end of fiscal 2027. The fund is expected to hit its constitutional cap in fiscal 2026, therefore appropriations from it — such as for disaster relief — could affect the amount of general revenue available, depending on timing and size.
The estimate also highlights the impact of recently passed federal legislation (H.R. 1, 119th Congress), which authorizes reimbursement to states for certain border security expenses. Texas is expected to receive a significant portion of those funds due to its sustained efforts at the southern border. Although the amount and timing remain subject to pending federal rules, the potential reimbursements represent a substantial fiscal benefit to state revenues. These receipts, as well as possible changes to Medicaid and nutrition program cost-sharing, are not yet included in the estimate and will be updated when more information becomes available.
Continued uncertainty around global markets, energy prices, interest rates and federal fiscal policy also are contributing factors that were considered when maintaining revenue projections published in January’s 2026–27 BRE, apart from updates based on enacted legislation
