Gov. Greg Abbott on June 18 signed into law a sweeping $20 billion plan to address Texas’ water infrastructure crisis, marking the state’s largest investment yet in securing long-term water supplies and repairing aging systems.
The plan, passed by the Texas Legislature with bipartisan support, directs an immediate $2.5 billion into a newly created Texas Water Fund. Lawmakers also approved a constitutional amendment proposal that would dedicate $1 billion annually in sales tax revenue to the fund for 20 years, starting in 2027. Voters will decide the measure’s fate in November.
“Texas is facing a water emergency that demands a generational solution,” Abbott said during the signing ceremony. “This investment will help ensure that our communities and our economy have the water they need for decades to come.”
The Texas Water Fund aims to split spending evenly between developing new water sources and upgrading existing infrastructure. New supply projects may include desalination, treated wastewater reuse, and construction of new reservoirs and pipelines. Infrastructure improvements are intended to reduce the billions of gallons lost each year through leaky pipes and aging systems.
A recent study by the public policy group Texas 2036 estimates the state needs $154 billion in water supply and infrastructure investments by 2050 to avoid severe shortages. Currently, Texas loses an estimated 88 billion gallons of water each year through failing pipelines, with Houston accounting for roughly a third of that loss.
The plan is a compromise between proposals that initially emphasized new water supply projects over repairs. Under the new law, the Texas Water Development Board will administer funds, working with regional planning bodies and an advisory committee.
Environmental groups praised the emphasis on conservation and system upgrades but expressed concern about the potential ecological impact of large-scale desalination projects.
If approved by voters, the tax dedication would secure funding through 2047, providing what lawmakers describe as a long-term solution to Texas’ growing water needs.