After months of negotiations and political maneuvering, Texas lawmakers have finalized a sweeping water infrastructure package that state leaders are already calling historic. Dubbed by leadership as the "water session," the Legislature approved a landmark $2.5 billion funding initiative aimed at addressing both aging water systems and the need for new water supply across a rapidly growing state.
At the heart of the deal is a two-pronged approach that blends immediate, flexible funding with long-term, structured investment:
$2.5 billion one-time appropriation to the Texas Water Development Board (TWDB) via House Bill 500, taken from the state’s current budget surplus.
A 20-year, $20 billion commitment to the Texas Water Fund, via House Joint Resolution 7 and Senate Bill 7, with $1 billion allocated annually starting this year.
A Balanced Split: 50/50 for Supply and Repair
While HB 500 allows the TWDB to spend its initial $2.5 billion at its discretion—with no formal split between new and existing projects—the long-term Texas Water Fund lays out a strict 50/50 split: half of the money will go to develop new water sources, and the other half will be spent on fixing and maintaining existing infrastructure.
This balance was a key sticking point between the House and Senate during the session, with differing views on how to prioritize spending. Ultimately, SB 7, the enabling legislation for the Water Fund, solidified the compromise and created a structure intended to serve all corners of the state.
Flexibility in Times of Crisis
SB 7 also includes a critical provision: in the event of a disaster declaration, the governor may waive the 50/50 requirement, allowing funds to be directed as needed to areas in acute crisis—an acknowledgment of the unpredictable nature of Texas' water challenges, from droughts to aging pipes.
Diverse Needs, Common Ground
Lawmakers repeatedly emphasized the varied water needs across Texas’ diverse regions. Rural areas face crumbling pipes and outdated wastewater systems, while fast-growing urban centers struggle to secure enough water to meet future demand.
“Each of our districts have their own water infrastructure challenges,” said Rep. Cody Harris (R-Palestine) as he introduced SB 7 on the House floor Monday. “Some areas are facing shortages, others have aging systems, and still others are growing so fast they’re outpacing their supply. This bill recognizes all of that.”
The legislation passed overwhelmingly in the House, with SB 7 receiving a 143-3 vote on second reading. At a Senate Finance Committee meeting Sunday, Sen. Charles Perry (R-Lubbock) echoed the historic tone of the moment.
“This is where Texas chose to meet one of the biggest unmet needs in the state of Texas,” Perry said, lauding the bipartisan cooperation behind the bill.
Looking Ahead: Final Steps Before Implementation
Though HB 500 and HJR 7 still require final Senate approval, momentum is firmly behind the package. With all three key components of the water plan—HB 500, HJR 7, and SB 7—nearing passage, the water session is poised to conclude with a once-in-a-generation investment in Texas’ most precious resource.
