What happened: The Beacon, a large-scale medical and research campus planned near the Wagner Noel Performing Arts Center, received $123 million in new state funding earlier this month.

Why it matters: The appropriation adds to the $126.7 million already allocated for the Permian Basin Behavioral Health Center, a 200-bed psychiatric hospital on the same site. However, the new funding comes with few public details.

The big picture: The behavioral health center aims to address a specific regional need. The Permian Basin is a federally designated mental health professional shortage area. There are fewer than one psychiatrist per 10,000 residents. The current system serves fewer than half of the adults needing mental health care and just 11% of children. The center, co-managed by Midland and Ector County hospital districts, will open in April 2026.

Go deeper: The justification for the broader Beacon project is less defined. Governor Greg Abbott described the investment as a way to “advance economic development opportunities throughout the region.” However, officials have not said how the additional $123 million will be used. The project spans 250 acres donated by Diamondback Energy. In addition to the behavioral health center, plans include a regional cancer center, a women’s and children’s hospital, a Texas Tech multi-specialty clinic, University of Texas Permian Basin classrooms, a regional EMS hub, a forensic pathology lab, housing, and retail.

One comparison may be Austin’s 123-acre Innovation District. It includes a teaching hospital and medical school. The district is expanding to include a $2.5 billion cancer center and specialty hospital. That district serves a metro population of 2.6 million. In contrast, The Beacon would serve about 700,000 residents across 21 mostly rural counties on a footprint twice the size of Austin’s.

The bottom line: Officials have not yet released how the project plans to staff multiple advanced medical facilities. Texas Tech University Health Sciences Center has previously reported ongoing shortages in family medicine, pediatrics, and psychiatry across the Permian Basin. Until more details are public, the behavioral health center remains the only known Beacon medical campus component with full funding.