Top Three Expenditures in the Texas State Budget

Based on the most recent enacted biennial budget (2024–25 General Revenue-Related funds), the three largest expenditure categories in Texas are:

1. Health and Human Services — $88.4 billion
   • Medicaid (federal-state, largest single program)
   • CHIP, TANF, SNAP administration
   • Mental health, disability services, child welfare, aging services
   • Women's health, community health centers
2. Education — $51.1 billion
   • Foundation School Program (K–12 formula funding)
   • Higher education (universities, community colleges, TSTC)
   • Teacher retirement (TRS), school safety, special education
3. Criminal Justice — $32.5 billion
   • Texas Department of Criminal Justice (prisons, parole, reentry)
   • Juvenile Justice Department
   • Department of Public Safety (Highway Patrol, Rangers, licensing)
   • Court system, indigent defense, border security operations

Context

• These three = ~70% of General Revenue spending.
• Transportation (TxDOT) is large but funded largely by dedicated fees/federal (not GR).
• Budget is biennial; figures are for 2-year cycle.
• Federal funds (not counted above) add ~$100B+ — mostly Medicaid match, transportation, education.

Texas spends heavily on health (driven by Medicaid enrollment), education (growing student population), and criminal justice (large prison system, border operations).