What will our state’s water future look like? Texas must invest at least $154 billion over the next 50 years to upgrade aging water systems and meet the needs of our growing population. Without action, prolonged drought could cost the state $165 billion in GDP each year by 2050.
That’s why the Texas Legislature made sure water was a top priority in the 2025 legislative session. We take a look at what steps Texas made to ensure our state has a reliable water future.
6 Generational Water Reforms for Texas’ Water Future
1.Starting in 2027, a $20 Billion Funding Commitment for 20 Years
HJR 7 by Rep. Harris & SB 7 by Sen. Perry
Establishes a $1 billion per year sales tax revenue dedication towards the Texas Water Fund. The proposed revenue dedication begins in 2027 and will continue for 20 years. These funds will be used for water supply projects and fixing failing systems.
2.Smart Funding Flexibility for Water Future Projects
SB 7 by Sen. Perry & SB 1967 by Sen. A. Hinojosa
Expands the capacity of water funds eligible to receive dedicated funding to fund water reuse, wastewater, agricultural water conservation and flood control projects (SB 7). Allows funding for flood control projects that can also be used to expand water supplies (SB 1967).
3.Promotes Regional Solutions for Water Services
SB 1169 by A. Hinojosa & SB 565 by Perry
Expands opportunities for implementing regional solutions for water service through the formation of public utility agencies (SB 1169). Removes regulatory disincentives for regionalization (SB 565).
4.$2.6 Billion Towards Texas’ Water Infrastructure Needs
HB 500 by Rep. Bonnen & Sen. Huffman
Appropriates over $2.6 billion towards Texas’ water infrastructure needs. This historic appropriations include matching funds to maximize Texas’ receipt of federal water infrastructure funds and $2.5 billion for water infrastructure projects and programs.
5.Strong Legislative Oversight
SB 7 by Sen. Perry
Establishes a permanent Texas Water Fund Advisory Committee that will provide the Legislature with enhanced oversight of the Texas Water Development Board’s (TWDB) use of the Texas Water Fund.
6.Measuring Our Water Future Performance
SB 7 by Sen. Perry & HB 2078 by Rep. Gerdes
Requires that TWDB report on the state’s progress towards expanding water supplies and fixing failing systems (SB 7). Requires tracking of groundwater use with long-term planning goals (HB 2078).