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Of Note

Here's to 25 Years! On November 16, more than 500 sponsors, donors, and friends joined with us to celebrate 25 years of working for a Better Texas.
> more Better Texas Film The Better Texas film. Together we can make our state a better place for all of us. A place of opportunity and prosperity. Because we all do better when we all do better.
> more How Is Your County Affected by the Budget? CPPP has county-by-county consequences of the 2012-13 state budget for major essential services, such as health and human services, public education, and higher education.
> more OpportunityTexas The Center for Public Policy Priorities (CPPP) and RAISE have launched a joint initiative, OpportunityTexasTM, an effort to help individuals and families save for the future and increase college access and success.
> more Former Lt. Governor Hobby and CPPP's McCown's Letter to Business Leaders Former Lt. Governor William P. Hobby and CPPP Executive Director F. Scott McCown urge business leaders to help address a challenge facing Texas that imperils our economic recovery and future prosperity—how to cope with a devastating state revenue shortfall.
> more

Recovery and Reinvestment in Texas

Federal economic recovery legislation working in Texas

The American Recovery and Reinvestment Act (ARRA) is making a vital difference in Texas. Potentially injecting as much as $38 billion into the Texas economy, the ARRA temporarily increases grants to federal, state, or local government agencies, along with making tax cuts or tax credits available to families and businesses. About $16 billion of Texas’ Recovery Act funding had to be appropriated by the legislature through the state budget or required the legislature to change state law—for example, $555 million that was contingent on modernizing the state’s Unemployment Insurance system.

ARRA spending by purpose in Texas
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Pie Chart on ARRA state budget breakdown
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Texas legislators appropriated $14 billion of federal ARRA funds through the 2009 supplemental spending bill (H.B. 4586) and the general appropriations act for 2010-11 (S.B. 1, Article XII). Of this $14 billion, 56 percent will be used for Medicaid and public education to avoid or reduce cuts by taking the place of General Revenue that would otherwise have been needed for those areas. The other 44 percent, about $6.3 billion, will pay for highways, child care, Workforce Investment Act services (or additional job training), energy programs, housing, water/wastewater projects, and other improvements. Some of these, particularly job training, energy conservation, and housing, are areas of the budget in which Texas has not traditionally invested much General Revenue, and the higher funding levels for these areas will not be continued once ARRA funds are exhausted. Most of the ARRA funds will be distributed to state agencies, and in some cases to local governments such as school districts, cities, and counties, through existing formulas.

Without ARRA funds to the states, Texas would probably have used some of its Rainy Day Fund to cover some of the General Revenue lost to the economic recession, but not all of it. Instead, without ARRA funds, the Texas budget would have made larger cuts to Medicaid and education than it did, and things like the teacher pay raise would not have been funded.

American Recovery and Reinvestment Act of 2009

Full text of legislation.

Select CPPP Publications

Federal Resources

State Resources

Nonprofit Resources