The General Appropriations Act is the most consequential bill the Legislature passes each session. The state budget funds the programs state agencies run and the resources they need to carry out laws passed in earlier sessions.
Last month, Texas 2036 testified at the Legislative Appropriations Request (LAR) hearings for five of Texas’ key infrastructure and natural resources agencies: the Texas Water Development Board (TWDB), the Texas Commission on Environmental Quality (TCEQ), the Public Utility Commission (PUC), the Railroad Commission (RRC), and the Texas Division of Emergency Management.
Our recommendations fall into three categories. First, agencies need enough resources to implement key bills from recent sessions. Second, agencies need enough capacity to keep up with Texas’ growing water, infrastructure and energy demands. Third, the Legislature should use part of the $7.5 billion federal border security reimbursement for targeted, one-time investments that strengthen the state’s long-term resilience.
Here’s a breakdown of our recommendations by agency.
Texas Water Development Board
- Agency capacity for Proposition 4 implementation. In 2025, voters approved Proposition 4. It dedicated up to $1 billion in state sales tax revenues to the Texas Water Fund. TWDB’s Exceptional Item #1 seeks $12.6 million and 50 FTEs for FY 2028–29. This will ensure the agency has the staff in place to handle more applications and get this historic investment to Texas communities.
- One-time strategic water infrastructure investment. Two critical water funds, the State Water Implementation Fund for Texas used to pay for state water plan projects, and the Flood Infrastructure Fund used to pay for flood protection infrastructure, will have extremely limited capacity to pay for new projects in the forthcoming fiscal biennium. Budget writers will have a new funding source to work with here: the federal government has reimbursed $7.5 billion to the state for border security expenses. Texas 2036 recommends that the Legislature consider allocating a portion of the $7.5 billion in federal reimbursement toward the State Water Implementation Fund for Texas (SWIFT) and the Flood Infrastructure Fund (FIF) as bridge funding until Proposition 4 revenue begins.
- Restore technical assistance funding capacity. The Water Utilities Technical Assistance Program (WUTAP) connects the state’s water financial assistance programs with small and rural communities that lack the capacity to apply for them. TWDB’s proposed Rider 25 would cut WUTAP from $1.5 million to $850,000 per year as part of a required 3% base reduction. Texas 2036 recommends restoring it to $1.5 million per year.
- Fund groundwater science and data collection. Many groundwater conservation districts (GCDs) lack the capacity to measure and assess the groundwater in their jurisdictions. Texas 2036 supports proposed Rider 30, which keeps $7.5 million in FY 2028–29 grants to GCDs for groundwater science, research and data collection. This continues a policy the 89th Legislature adopted.
Texas Commission on Environmental Quality
- Update Texas’ water availability models to support accurate state water planning. TCEQ maintains water availability models (WAMs) that describe how much water each river basin can reliably supply. Texas 2036’s recent report on the Coastal Bend water crisis found that outdated water models contributed to inaccurate projections within the state’s water plans. Before TWDB begins the planning cycle for the 2032 State Water Plan, Texas 2036 recommends that TCEQ, working with TWDB, identify which basin models need updating and amend its LAR to cover the cost. Estimates range from $5 million to $7 million.
- Support agency capacity for effective water sector oversight. Texas’ economic and population growth has accelerated demands for water permitting and environmental oversight by TCEQ. Texas 2036 supports Exceptional Items #1 ($14.6 million, 42 FTEs) and #3 ($1.7 million, 10 FTEs). They would give TCEQ the staff to process permits on time and keep up effective oversight of Texas’ water resources.
Public Utility Commission of Texas
- Agency capacity to implement wildfire protection bills. After the 2024 Panhandle wildfires, the largest of which was started by a decayed utility pole, the 89th Legislature passed a package of bills to reduce wildfire risk from electric infrastructure. HB 145 requires utilities to adopt wildfire mitigation plans. HB 144 and SB 1789 set up pole inspection, management and structural-integrity requirements. PUC’s Exceptional Item #2 (about $2.3 million per year) provides the contract resources needed to implement all three laws.
- Supporting grid resilience with backup battery investment. Hospitals, police stations and nursing homes need dependable power during emergencies. The Texas Backup Power Package Program, funded through the Texas Energy Fund, provides grants for multi-day battery backup at critical facilities like these. PUC expects heavy demand for the program. Texas 2036 supports Exceptional Item #8. It adds 11 FTEs (about $1.1 million per year, paid from Texas Energy Fund administrative funds) to manage it.
Railroad Commission
- Support RRC’s capacity to inspect for oilfield wildfire risks. In 2025, and in response to the Panhandle wildfires of 2024, the Legislature passed HB 143. It required that RRC inspect well sites for compliance with electrical fire and safety requirements. Texas 2036 supports two complementary budget requests to help RRC implement HB 143. Exceptional Item #3 ($3.6 million, 5 FTEs) adds field inspection capacity and helps the agency maintain its five-year inspection cycle. Exceptional Item #6 ($1.2 million) funds electrical-safety training for current and new inspectors.
- Complete modernization of RRC’s information technology systems. Since 2019, RRC has worked on replacing its antiquated, legacy mainframe with modern, 21st-century applications. RRC’s $21.5 million capital budget request would fund Phase V, the final phase of this effort. It is expected to improve efficiency and performance in permitting, compliance inspections and reporting. It will also make the data Texans and policymakers rely on more reliable and accessible.
Texas Division of Emergency Management (Texas A&M System)
- Strategic investment in emergency response infrastructure. Data from the Office of the State Climatologist indicates that Texas’ extreme weather risks continue to rise. These include the potential for more severe droughts, wildfires, severe storms, and major floods. TDEM’s response is currently slowed by the distance from its logistics centers in Austin and San Antonio. Exceptional Item #1 requests $256 million in FY 2028 to build four Regional Emergency Operations Centers. These will be placed in the Panhandle, North Texas, East Texas and the Central/West Border regions. This will allow the state to stage disaster response and recovery resources closer to where they’re needed. Given the one-time nature of this request, Texas 2036 recommends that the Legislature consider using a portion of the $7.5 billion in federal border security refund dollars for this purpose.
These budget requests lay the groundwork for the infrastructure and natural resources agenda that Texas 2036 will pursue during the next legislative session. Broadly, this agenda includes developing the water infrastructure needed for continued growth, delivering reliable and affordable electric service, and enhancing the state’s resilience to extreme weather risks.
