Despite its conservative image, Texas is a haven for crony capitalism. Texans provide billions of dollars for big and small business and special interests groups through multiple channels, including property tax abatements for manufacturers and subsidies in the Texas budget. 

When looking at the 2026-27 Texas budget, there are two ways that special interests benefit. One is through direct subsidies that are line items in the Texas budget. This includes the Texas Energy Fund’s $5 billion in subsidies for natural gas electric generators, $723 million for film and TV productions, and $413,000 that benefits women’s groups and causes.

The second way special interests benefit in the Texas budget is through agency level subsidies and contracts supported by state appropriations. The largest of these are energy subsidies and benefits through the Public Utility Commission of Texas. Thermal and renewable generators will benefit from $19 billion of subsidies and benefits over the next two years supported by the PUC.

Another group that benefits are historically underutilized businesses that receive more than $4 billion in contracts each year because they are owned by minorities or women.

It seems as if everyone has priority access to taxpayer funds except the taxpayers themselves.

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