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Texas set to make $20 billion funding in water after voters approve Proposition 4

November 5, 2025
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Construction on the Bustamante Waste Water Treatment Plant expansion in El Paso on March 5, 2025.
Development on the Bustamante Waste Water Therapy Plant enlargement in El Paso on March 5, 2025. Credit score: Texas Tribune / Justin Hamel

Texas is poised to make the biggest funding in its water provide within the state’s 180-year historical past after voters on Tuesday accredited Proposition 4, which authorizes $20 billion to be spent on water tasks over the following 20 years.

The vote comes at a time when communities are scrambling to seek out new water provides to satisfy the wants of their rising inhabitants, all of the whereas deteriorating infrastructure, and a warming local weather threatens the state’s water provide.  

All through Texas’ historical past, guaranteeing water provide has hardly ever been a partisan situation. Many see it as a treasured useful resource important to each survival and the prosperity of the state’s financial system. Nevertheless, this yr proved that water is private and deeply emotional too. Proposed reservoirs and groundwater exports in East Texas have outraged many within the water-rich area, desalination tasks alongside the Coastal Bend area have sparked political debate amid a water disaster, and knowledge facilities increasing throughout arid West Texas have locals apprehensive about their dwindling groundwater provide.

These challenges and others pushed lawmakers to make large investments in water on the Capitol this yr.

“Prop 4 is the fruits of just about 30 years of bipartisan work to create dependable and predictable funding for Texas water,” stated Sarah Rountree Schlessinger, CEO of Texas Water Basis, a nonprofit that educates Texans on water points. 

“We’re thrilled that Texans confirmed up, requested deep questions, and that they selected to prioritize water infrastructure wants throughout the state. That tells you numerous concerning the state of Texas water.”

A portion of present state gross sales tax income — as much as $1 billion yearly — can be deposited into the Texas Water Fund every year, beginning in 2027 to assist fund water, wastewater and flood infrastructure tasks. 

The funding comes from present income, that means no new taxes can be created. Nevertheless, the cash would solely be transferred to the fund when gross sales tax collections exceed $46.5 billion in a given yr. The previous two fiscal years have surpassed that quantity. Assuming the state’s development continues, there will probably be sufficient cash obtainable to dedicate the $1 billion to the fund. 

The $20 billion is much wanting what the state wants to take care of its water infrastructure. In keeping with one estimate, Texas communities want almost $154 billion over the following 50 years for tasks. Each rural and concrete communities will have the ability to faucet the fund to deal with their present infrastructure wants.

“Right this moment’s vote reveals that Texans throughout the political spectrum perceive the stakes and are able to spend money on options that may shield our water for generations,” stated Jennifer Walker, a particular adviser to the Nationwide Wildlife Federation Motion Fund. 

“Investing in our water infrastructure now means fewer leaks, safer consuming water, conservation of pure sources, and a stronger financial system that may assist households and communities for many years.”

The cash will probably be managed by the Texas Water Improvement Board, the state company that oversees the state’s water provide. Funding can be divided into two classes: water provide tasks, and different present water applications. 

Water provide tasks would increase the general quantity of water obtainable in Texas. Tasks that could possibly be paid for embody desalination, which cleans salty water for consuming and agricultural use, fixing leaking pipes, water reuse, which incorporates treating wastewater and  produced water from the oil and fuel trade, conservation methods and setting up permitted reservoirs. Present water applications embody enhancing flood management infrastructure and flood mitigation, guaranteeing clear consuming water, and agricultural water conservation. 

Whereas oil and fuel, and massive statewide water teams in Texas supported the proposition, some environmental teams had been involved that sure tasks, like reservoirs, will probably be prioritized as a type of new water provide and take the land of farmers and residents who dwell in areas the place they plan to be constructed. 

Different organizations feared it’s going to assist fund mega tasks like desalination, which they imagine will assist trade enlargement of their communities, and that native communities will probably be minimize out of water selections. Some conservative teams argued that spending shouldn’t be written into the Texas Structure.  

The proposition doesn’t greenlight tasks, however moderately supplies a option to finance tasks. Any explicit undertaking that receives funds from the Water Improvement Board will undergo a daily software course of. The Texas Water Basis stated that the proposition prohibits the switch of groundwater.

The fund additionally comes with some oversight. Lawmakers have created a particular committee to supervise the water board’s administration of the funding. The water board will probably be required to report on how the cash is being distributed and the affect they’re having in assembly state wants and the general public can have an opportunity to provide enter. 

“Devoted funding is a very powerful device obtainable to deal with the looming water challenges and rising prices for ratepayers throughout the state,” stated Stacey Allison Steinbach, Texas Water Affiliation’s Govt Director.

Disclosure: Texas Water Basis has been a monetary supporter of The Texas Tribune, a nonprofit, nonpartisan information group that’s funded partly by donations from members, foundations and company sponsors. Monetary supporters play no position within the Tribune’s journalism. Discover a full checklist of them right here.

This text first appeared on The Texas Tribune.

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