Texas’ future depends on water infrastructure

This is the first of a three-part series on water infrastructure policy for the 89th Legislature.

Water infrastructure funding ranks among the key issues on the Legislature’s policy agenda for 2025. State leaders including the Governor, Lieutenant Governor, and even the new Speaker of the House, have indicated a need for water infrastructure investment.

To be sure, policymakers have reached an inflection point in a decades-running policy discussion on how to address Texas’ water infrastructure needs. While previous Legislatures approved incremental funding initiatives for water, such as the creation of the State Water Implementation Fund for Texas (SWIFT) in 2013 and the Texas Water Fund in 2023, the current conversation orients toward long-term, lasting funding solutions.

Here’s three reasons why water infrastructure funding is a priority in 2025.

1. Texas faces substantial water infrastructure challenges.

Texas’ water future hinges on the resolution of two major water infrastructure challenges. First, economic and population growth, combined with the state’s susceptibility to severe droughts, necessitates the expansion of Texas’ water supply portfolio.

Second, aging and deteriorating drinking water and wastewater systems are increasingly liabilities to the communities that they service. Thousands of boil water notices per year, billions of gallons of water lost through leaking pipes, and even system failures leaving communities without water reflect the magnitude of this problem.

Two reports released by Texas 2036 conclude that these challenges present mounting economic liabilities. For example, if the state fails to expand its water supply portfolio and gets hit with a long, severe drought, then the annual GDP losses could exceed those endured during the Great Recession and COVID pandemic.

Diminished water supplies could also affect electricity generating capacity, impairing the reliability of our grid. In addition, failing water systems could incur nearly $320 billion in economic losses over the next 15 years, an amount equal to the size of the current state budget.

2. Texas’ Economic Miracle depends on water infrastructure.

Over the past two decades, Texas’ gross domestic product grew by an astonishing 200%. This explosive growth correlates with substantive expansions in the state’s energy, housing, manufacturing, and semiconductor industries, to name a few.

Texas’ economic fortunes hinge on the presence of three key elements: a qualified workforce, a dependable electric grid, and reliable water infrastructure. As more water-intensive industries expand here, and as more families call Texas “home,” the state must expand its water infrastructure in order to sustain this growth pattern.

Just as water infrastructure investments allay the economic consequences of water shortages or failing systems, they offer a foundation for continued economic growth and development. In fact, a recent report by the Baker Institute at Rice University found that every 100,000 acre-feet in incremental water supply can support upward of $30 billion in economic activity.

3. Voters want water security.

Texans are worried about their water and want to see progress toward addressing the state’s water infrastructure challenges. Texas 2036’s 8th Texas Voter Poll conducted in November found that 85% of voters are concerned that droughts, growth and aging systems may fuel water shortages.

The poll also found that 85% of voters support the state’s adoption of a long-term funding strategy to expand water supplies and fix failing infrastructure. Toward that end, just over two-thirds of voters support the annual dedication of $1 billion to address state water needs.

These recent poll data are consistent with the results from previous Texas 2036 voter polls that found substantive voter concern over water security and a strong willingness to support state investment in water infrastructure.