Texas Colleges to Slash State Budget Requests by 3%

July 20, 2026
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Texas colleges and universities will need to plan for a 3 percent budget cut, state officials said last week.

In guidance to state agencies, officials said state lawmakers “must act boldly to preserve Texas’ competitive advantage through targeted affordability measures and additional property tax reform while maintaining our commitment to fully funding public education.”

The 3 percent reduction in agencies’ requests for the next state budget will serve “as the starting point for budget deliberations,” they added. If the plans hold, they could lead to larger classes and unfilled vacant positions, The Texas Tribune reported. State universities have already been making budget cuts to address existing budget shortfalls.

In the current budget, which runs for two fiscal years, lawmakers allocated $34.36 billion toward higher education—$23.9 billion of which came from general revenues, according to budget documents.



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