Texas HB181 sets a limit on municipal and county expenditures starting from fiscal year 2026.

Texas HB181 amends the Local Government Code to add a limit on annual expenditures for municipalities and counties. This limit applies to fiscal years beginning on or after January 1, 2026. A political subdivision's total expenditures from all available sources of local revenue in a fiscal year may not exceed the greater of the previous year's expenditures or an amount determined by multiplying the previous year's expenditures by one plus the inflation rate.

Texas HB181 sets a limit on municipal and county expenditures starting from fiscal year 2026.

Texas HB181 amends the Local Government Code to add a limit on annual expenditures for municipalities and counties. This limit applies to fiscal years beginning on or after January 1, 2026. A political subdivision's total expenditures from all available sources of local revenue in a fiscal year may not exceed the greater of the previous year's expenditures or an amount determined by multiplying the previous year's expenditures by one plus the inflation rate.