The “Texas-Sized” opportunity for water
Less than seven minutes into his State of the State address, Gov. Greg Abbott announced that water infrastructure funding would be a policy priority and an emergency item for the 2025 legislative session, giving legislators the green light to begin work on this topic immediately.
The timing of Gov. Abbott’s declaration couldn’t be better.
This marked the first time in 40 years that a sitting governor has designated water infrastructure funding as an emergency item. The last time was in 1985 when Gov. Mark White designated a proposed constitutional amendment for the Texas Water Development Board’s bonding authority as an emergency item.
Of course, Texas — and the magnitude of our water infrastructure challenges — have drastically changed since 1985.
A state primarily renowned then for oil, agriculture and “Dallas” has grown into a national leader in technology, energy innovation, space exploration, manufacturing and more. These are the hallmarks of an era of unparalleled economic growth and development known as the Texas Economic Miracle.
Gov. Abbott’s call for prioritizing water infrastructure investment reflects a broader vision of what’s needed to keep this miracle alive. Water infrastructure, like a qualified workforce and a dependable electric grid, serves as one of the essential foundations for growth, development and prosperity. Absent consistent water supplies or functioning drinking water and wastewater systems, the promise of Texas’ economic miracle could very well fall apart.
A generational investment in water
Data from recent Texas 2036 reports reveal that the state will need to invest at least $154 billion over the coming decades toward addressing our long-term water infrastructure challenges. These include expanding our water supply portfolio and fixing aging, deteriorating systems. While the state already has some programs in place to address these long-term needs, Texas 2036’s reports point to a $110 billion water infrastructure funding gap.
The Governor’s call for a “Texas-sized,” “generational investment” in water infrastructure aims to fix the problems — including low water supplies, broken pipes and industries under duress — described in his speech. But there’s a bigger part to this vision here. Water infrastructure investment supports existing and future economic activity that secures jobs, income and prosperity while enhancing Texas’ resilience to the ever-present specter of drought.
All of this needs to happen to keep Texas’ economic miracle alive for the betterment of future generations.
The Legislature contemplates historic water investment
The great news is that House and Senate budget writers have released introduced versions of their respective budgets that include $2.5 billion for water infrastructure funding. This initial proposed amount is already historic: never before has the Legislature proposed a water funding package of this magnitude.
While it’s true that size matters here, so does consistency. A substantial, one-time appropriation toward Texas’ water infrastructure needs will catalyze and jump-start critical projects. But the magnitude of Texas’ water infrastructure challenges necessitate a sustained, dedicated funding effort over the long term. Toward that end, a growing number of businesses, local chambers of commerce and industry groups are supportive of the Legislature’s approval of a dedicated revenue stream for water infrastructure needs.
Texas is on the cusp of having one of the most consequential water infrastructure sessions of this century. A Texas-sized investment in water infrastructure that includes dedicated funding will have lasting — and positive — ripple effects for decades to come.