Gov. Rick Perry is threatening to call a special legislative session if lawmakers don't send him a budget with $1.8 billion in tax cuts.
The Legislature finishes its work May 27 - unless Perry summons it back into session.
The House late Tuesday passed a tax bill proposing $667 million in breaks for Texas businesses. Perry said Wednesday that was "a third of the way there."
He added: "If folks want to go home at the end of this legislative session" he'd have to see a budget including $1.8 billion in tax cuts.
Perry said he wants no fee increases for transportation and $2 billion for water and infrastructure projects.
The hard line was a tactical change for Perry, who has had a low-key role in pushing legislation this session.