Health funding in Texas’s developing FY 2022-2023 budget

The in-progress $246 billion Texas state budget for FY 2022-2023 contains a total of $87.2 billion in Article II funding — funding for health and human services. Along with several other agencies, this includes funding for the Health and Human Services Commission (HHSC) ($80.2 billion) and the Department of State Health Services (DSHS) ($1.8 billion).

The general fund will contribute $34.3 billion of the $87.2 billion in Article II funding for the next biennium. General fund contributions to HHSC funding is $29.5 billion, and general fund money directed to DSHS is $510.5 million.


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This is a slight decrease from last biennium’s budget. In the FY 2020-2021 budget, the general fund accounted for $33.6 billion of the $84.3 billion in total allocated to Article II in FY 2020-2021.

The overall funding specifically dedicated to Medicaid services for FY 2022-2023 is approximately $72.3 billion, including $7.7 billion for Medicaid prescription drugs. Funding for Medicaid services will use $25.1 billion from the general fund.

The budget directs significant funding to hospitals, with a total of $810.5 million to support rural and Medicaid hospitals. This includes a total of $300 million for safety net hospitals. As noted by the Texas Hospital Association, this funding is particularly important in the aftermath of Texas’s loss of its Medicaid 1115 waiver, which helped fund the state’s uncompensated care.

Other notable budget allocations for FY 2022-2023 include:

  • Women’s health programs: $352.6 million
  • Early Childhood Intervention (ECI) services: $314.8 million
  • Community mental health services for adults: $776.3 million
  • Community mental health services for children: $185 million
  • Community mental health crisis services: $231.4 million
  • Substance abuse prevention, intervention and treatment: $496.2 million
  • Special Supplemental Nutrition Program for Women, Infants and Children (WIC): $1.7 billion
  • State supported living centers: $1.4 billion
  • Mental health state programs: $933.6 million
  • Mental health community programs: $277 million

Having received approval from the House after hours of debate and nearly 250 proposed amendments, the budget was sent back to the Senate two weeks ago. Last week, the Senate requested that a conference committee convene to hash out final disagreements before the budget is sent to Gov. Greg Abbott’s desk. The House accepted the request.

The conference committee will consist of 5 members from each chamber. Senator Jane Nelson will chair the Senate side of the conference committee, joined by Sen. Joan Huffman, Sen. Lois Kolkhorst, Sen. Robert Nichols and Sen. Larry Taylor. Representative Steve Bonnen will lead the House participation in the committee, joined by Rep. Giovanni Capriglione, Rep. Mary Gonzales, Rep. Armando Walle and Rep. Terry Wilson.