Closing Texas’ long-term water infrastructure funding gap

Reliable, consistent state investment in water infrastructure protects Texas’ Economic Miracle while establishing a strong foundation for continued growth, development and prosperity.

Here are three reasons why the constitutional dedication of revenues for water infrastructure called for in House Joint Resolution 7 by state Rep. Cody Harris, R-Palestine, makes for good policy.

First, HJR 7 helps close Texas’ long-term water infrastructure funding gap.

Texas 2036 projects that the state will need to invest at least $154 billion in the coming decades toward expanding our water supply portfolio and fixing aging, deteriorating systems. We estimate that existing state and federal funding programs will cover roughly 25% of this need. This will leave a long-term water infrastructure funding gap of $110 billion.

HJR 7 addresses this problem, in part, with its $1 billion per year revenue dedication to the Texas Water Fund. I especially like the smart flexibility within the joint resolution that allows the Legislature to raise this amount to $2 billion.

This is the type of financial strategy Texas needs if we want to close our long-term water funding gap.

My second point is that dedicated funding will help protect Texas’ economic miracle.

For context, Texas faces two significant water infrastructure challenges. The first is the need to expand our water supply portfolio for a drought-prone and growing state.

If Texas fails to do this, and we’re hit by a long, severe drought, then by 2050 the state will endure $165 billion in annual GDP losses.

Our second challenge involves fixing our aging, deteriorating drinking water and wastewater systems.

Left unresolved, these failing and at-risk systems will cost the state’s economy a total of nearly $320 billion over the next 15 years.

Moreover, research by Texas 2036 and the Baker Institute at Rice University points to greater risks to the reliability of our state’s electric grid if we don’t have enough water for power generation.

To put it bluntly: insufficient investment in water infrastructure could very well reverse Texas’ economic miracle.

HJR 7 puts Texas on the investment path that should in the long run serve as a hedge against the risks I just described.

This leads me to my third point, which is that water infrastructure investment supports continued economic growth and development.

Reliable water infrastructure — like a dependable electric grid and a qualified workforce — provides a strong foundation for continued economic growth and development.

Two reports released by Texas 2036 last year found that reliable water infrastructure supports both economic growth and job creation.

For example, each 100,000 acre feet in water supply development potentially supports upwards of $30 billion in new economic activity.

In addition, every $1 million in water infrastructure investment supports upwards of 16 direct and indirect jobs in addition to the expansion of other key state industries.

Given these examples, HJR 7 will work to propel Texas’ economic miracle.

Texas 2036 supports HJR 7 because it prescribes the bold direction needed for Texas’ water future and our economic success. That said, any constitutional dedication of state revenues must be accompanied by strong legislative oversight and performance accountability for gauging achievement and success.

So far this legislative session, we have gathered the names of over 110 chambers of commerce, trade groups, and businesses that support dedicated funding for our long-term water infrastructure needs. This is evidence of strong civic support for a dedicated, Texas-sized investment for our water future.

[Watch Jeremy Mazur’s testimony on March 19, 2025, to the House Natural Resources Committee in support of HJR 7 here.]