TL:DR

Boaters take to the water for Labor Day, on Monday September 2, 2019, at Lake O' the Pines. (Michael Cavazos/News-Journal Photo)

Texas is poised to make historic investments in water supplies and infrastructure in the next few decades, but some of the funding won’t be immediate.

During the November 2025 election, more than 70% of Texas voters approved Proposition 4, creating a constitutional amendment to dedicate up to the first $1 billion in sales tax revenue — exceeding $46.5 billion annually — to the Texas Water Fund from 2027 to 2047.

This potential $20 billion marks the largest investment in water supply in Texas history, and comes as the state’s booming economy sees a massive influx in new businesses and residents.

The growth is putting new strains on Texas’ natural resources, and challenges an already fragile power grid. “It’s an exciting time for Texas,” Bryan McMath, executive administrator of the Texas Water Development Board, said in a news release after the election. “We’ve now seen two sessions where the Texas Legislature recognized the growing need to address water issues facing the state and took action with historic investment for these critical initiatives so that Texas can continue to thrive for generations to come.”

Because of this timing, the 91st Texas Legislature, which convenes in January 2029, is the first scheduled session for the lawmakers to appropriate the funds dedicated to the Texas Water Fund because of the Proposition 4 passage. After the legislative session concludes, the water board will receive the funding, evaluate applications and award project funds in accordance with statutory and legislative guidelines. Money from the Texas Water Fund must be used on water, wastewater and flood infrastructure projects and strategies, and at least half of this newly dedicated funding is required by law to be directed to the State Water Implementation Fund of Texas and New Water Supply for Texas Fund. This cycle will repeat until the constitutional dedication of funds ends in August 2047. While this funding won’t be available for a little while longer, the Legislature also approved more than $2.5 billion for water infrastructure funding.

The interim endowment is the largest one-time appropriation for a water project in state history. Alan Leonard, Texas Water Foundation’s policy director, said 2029 may seem distant, but several significant milestones will need to be hit in preparation. In a news release, Leonard said the Legislature, state agencies, water utilities and districts, trade associations, nonprofits — and the public — will lay the groundwork for this 20-year dedication in various ways. Actions that need to be taken include updating the state’s long-term water supply and flood plans, adjusting rules and processes to implement laws passed this year related to water planning, financial assistance and permitting, and more. “The passage of the amendment signals a transformational investment in Texas’ water infrastructure and confirms its importance to Texans,” he said.

My Thoughts 💭My Thoughts 💭

Texas going big with using sales tax revenue to pay for much needed water infrastructure investment! Capped at $1B. I think this is too low they should link it to the growth expectations of the state. But overall the people of Texas voted overwhelmingly for this measure.

I am glad the state is stepping up and not waiting for the Feds to come up with the funding.