The Budget Is Final: Inside the Top 3 Department IT Capital Budgets

Gov. Greg Abbott on June 22 signed the $338 billion budget of the 89th Legislature, which will take effect on Sept. 1 and runs through Aug. 31, 2027.

Senate Bill 1 includes $135 million in funding for the creation of the Texas Cyber Command; House Bill 14 put $350 million toward the creation of the Texas Advanced Nuclear Energy Office.

Below are the top three IT capital budgets in descending order, as well as notable capital projects.

Health and Human Services Commission

Acquisition of information resource technologies: $554.2 million in FY 2026, $497.2 million in FY 2027

• Medicaid Management Information System (MMIS) modernization: $232.9 million in FY 2026 and $241.1 million in FY 2027
• Texas Integrated Eligibility Redesign System (TIERS): $121.9 million in FY 2026 and $124.4 million in FY 2027
• WIC EBT online transition: $72 million in FY 2026 and $19.3 million in FY 2027

Data center consolidation: $114.4 million in FY 2026, $115.8 million in FY 2027

Centralized Accounting and Payroll/Personnel System (CAPPS): $19.5 million annually

Cybersecurity: $9.4 million in FY 2026, $8.8 million in FY 2027

Department of Transportation

Acquisition of information resource technologies: $86.5 million in FY 2026, $80.9 million in FY 2027

• Technology replacements and upgrades: $42.5 million in FY 2026, $42.3 million in FY 2027
• Information and systems modernization: $25.8 million in FY 2026, $21.7 million in FY 2027
• Enterprise Information Management: $11.7 million in FY 2026, $10.5 million in FY 2027

Data center consolidation: $69 million in FY 2026 and $71.6 million in FY 2027

CAPPS: $15.9 million in FY 2026 and $15 million in FY 2027

Cybersecurity: $20.3 million in FY 2026 and $15.8 million in FY 2027

Mainframe Legacy Modernization: $11.2 million in FY 2026 and $7.9 million in FY 2027

Department of Public Safety

Acquisition of information resource technologies: $48.5 million in FY 2026, $43.3 million in FY 2027

• Advanced Analytics and Threat Detection Software: $11.1 million annually
• IT Modernization and Maintenance Projects: $7 million in FY 2026, $6.4 million in FY 2027
• Driver License Technology Upgrades: $4.9 million in FY 2026, $4.5 million in FY 2027

Data center services: $13.7 million in FY 2026, $13.8 million in FY 2027

CAPPS: $679,000 annually

Cybersecurity: $7.4 million in FY 2026, $5.7 million in FY 2027

Gov. Abbott has also signed several tech-related bills alongside SB1, half of which directly relate to AI despite a looming federal moratorium on state AI regulations.