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On June 22, 2025, Governor Greg Abbott (R) signed Senate Bill 1, the General Appropriations Act for the 2026–27 biennium or state budget, touting it as a fiscally responsible budget that stays under all four constitutional spending limits. The $338 billion budget includes some property tax relief and investments in energy, water infrastructure, border security, and education.
However, Abbott also exercised his line-item veto authority to eliminate several budget items he deemed unnecessary, legally questionable, or contingent upon failed legislation. The vetoes fall into three main categories:
- Federally contingent programs,
- Contingency riders for legislation that did not pass, and
- Riders with potential constitutional issues.
Vetoed the Summer EBT Program and Federal Dependency
Budget item vetoed: $60 million appropriation in Article IX, Sec. 17.30
Purpose: Would have created a Summer EBT program administered by the Health and Human Services Commission (HHSC), pending unchanged federal match rates.
Governor’s objection: Abbott cited “significant uncertainty regarding federal matching rates” for the program. The rider included language voiding the appropriation if federal cost-sharing rules changed, which Abbott viewed as too unstable to warrant budgeting now. He suggested the Legislature revisit the program when there’s more fiscal clarity.
Takeaway: This move reflects growing skepticism toward tying state funds to federal mandates, especially when those mandates are subject to change. Critics of the veto may argue that it unnecessarily blocks a benefit program for low-income children during summer months, while proponents will see it as a defense against unpredictable federal entanglement.
Contingency Riders for Failed Legislation
Governor Abbott vetoed several appropriations that were contingent on legislation that ultimately failed to pass through the legislative process. These contingency riders were preemptively included in case the bills succeeded, a common practice in state budgeting. The vetoes below reflect standard clean-up:
- STEM Excellence Graduate Fellowship Program – $2 million for HB 5333.
- Proof of Citizenship to Register to Vote – $971,259 and FTE increases for SB 16 / HB 5337.
- Memorial Markers for Officers Killed in the Line of Duty – $500,000 for SB 249.
- Small and Micro-Business Disaster Recovery Loan Consolidation – $5 million for SB 1361.
- Water Utility Certificate Modifications – $850,000 and FTE increases for SB 1413.
- Mental Health Crisis Facility Procedures – $5 million for SB 2487.
Governor’s objection: Each veto was made on the grounds that the underlying legislation did not pass during the regular session.
Takeaway: These line-item vetoes serve as procedural housekeeping. Abbott eliminated budget allocations that are now moot, avoiding the misallocation of funds for laws that no longer exist.
Veto Over Constitutionality: Water Transfer Permit Rider
Budget item vetoed: Rider 36 under Article VI – Texas Commission on Environmental Quality (TCEQ)
Purpose: Would have barred the agency from spending staff time or resources preparing or issuing permits for an interbasin transfer from the Cypress Basin to entities in Regional Planning Group C.
Governor’s objection: Abbott argued the rider likely violates Article III, Section 35 of the Texas Constitution, which prohibits including general law in the General Appropriations Act. By attempting to prohibit an activity otherwise allowed under the Texas Water Code, the rider ventured into policymaking—a power reserved for separate legislation.
Takeaway: This veto reasserts the constitutional separation between budgetary decisions and general law. It may also signal that Abbott is unwilling to allow the budget to be used as a vehicle for blocking specific water infrastructure projects, especially those involving politically sensitive transfers.
Final Thoughts
Governor Abbott’s selective vetoes on SB 1 reflect a strategic balance between preserving core funding priorities and guarding against legislative overreach, unfunded contingencies, and shifting federal cost obligations. By removing failed-program funding and potentially unconstitutional riders, Abbott aimed to keep the state’s fiscal plan streamlined, legally sound, and aligned with his administration’s policy boundaries.
At the same time, the vetoes open the door to criticism from those who view the Summer EBT veto as a blow to food-insecure families or see the elimination of election security funding as a missed opportunity. Yet Abbott’s overarching message is clear: this budget, minus the vetoed items, represents a deliberate continuation of conservative fiscal governance.
Other vetoes by Governor Abbott will be the impetus for a future special legislative session.
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