Governor Greg Abbott Directs Texas Agencies to Target 3% Budget Reductions Ahead of Legislative Session

AUSTIN, TX — Governor Greg Abbott issued official budget instructions to state agency directors and the Texas Legislative Budget Board, directing executive agencies to submit legislative appropriations requests reflecting a baseline 3% reduction in general revenue spending for the 2028–2029 biennium.

Fiscal Restraint and School District Oversight

The gubernatorial directive aims to preserve state fiscal surpluses and prepare for comprehensive property tax relief legislation in the upcoming 89th Legislative Session. Governor Abbott also requested Texas Comptroller Glenn Hegar to initiate expenditure audits of independent school district administrative costs.

Governor Abbott maintained that state agencies must operate efficiently without burdening Texas taxpayers, emphasizing that savings will be redirected toward border security operations and property tax compression.

Legislative Reaction and Budget Forecasts

Fiscal conservative groups supported the efficiency targets, while education associations requested exemptions for special education classroom funding.

State agency budget submissions are due to the Legislative Budget Board by October 2026.

Next Steps in Biennial Budgeting

The Texas Legislature will convene in Austin in January 2027 to draft the next biennial appropriations act.