State lawmakers filed bills in March that would send up to $1 billion annually to the Texas Water Fund, invest in aging water infrastructure and more.
“The Texas economic miracle, it needs three ingredients to happen: it needs a qualified workforce, a dependable electric grid and reliable water infrastructure,” Jeremy Mazur, a policy director for the nonpartisan think tank Texas 2036, said during a March 3 panel at the state capitol.
What you need to know
Sen. Charles Perry, R-Lubbock, introduced Senate Bill 7 on March 13, one day before the deadline to file legislation this session. His bill is aimed at creating new water supplies, preserving existing resources, boosting flood infrastructure and increasing oversight of water funding projects.
“Texas must act now to secure a reliable water supply for today and for future generations,” Perry said in a statement. “This is not just a priority—it is a fundamental responsibility of state and local government. Either we step up and solve this challenge, or we risk failing tens of millions of Texans.”
A week earlier, Rep. Cody Harris, R-Palestine, filed House Bill 16. His proposal has similar goals: repairing deteriorating water systems, expanding the types of projects that qualify for state water funding and more.
“[Water] is one of the most complex issues that we face,” Harris said at the March 3 event. “If we don't dig in and do the hard work of figuring out how to solve this problem for future generations of Texans, then we have done a huge disservice to the people who elected us.”
The Texas Water Development Board’s state water plan estimates about 51.5 million people will live in Texas by 2070, up from 31.3 million today. In that period, demand for water is expected to increase by 9% and existing water supplies are projected to decline by 18%, according to the report.
More details
Perry and Harris each filed plans to create a dedicated funding stream for the Texas Water Fund, a state account created in 2023 to help finance water projects. Lawmakers have said funding could mirror the state highway fund, which is bankrolled by several sources, including vehicle registration fees, and oil and natural gas taxes.
Their proposals are backed by Gov. Greg Abbott, who named water infrastructure funding a top priority in February.
“We will put Texas on a path to have plenty of water for the next 50 years,” Abbott said during his State of the State address at Arnold Oil in Austin. “We will make the largest investment in water in the history of Texas. We will tap into new water supplies and repair pipes to save billions of gallons of water each year.”
Zooming in
If both legislative chambers approve one of the funding bills—House Joint Resolution 7 and Senate Joint Resolution 66—the proposal would appear on Texas voters’ ballots in November.
According to polling from Texas 2036, 85% of registered voters are concerned about the risk of future water shortages and 65% of voters support sending $1 billion annually to the state water fund.
Harris’ joint resolution proposes sending up to $1 billion annually in state sales tax revenue to the water fund for 10 years. Perry’s measure would spend money from both sales and insurance premium taxes for 16 years.
It is unclear how much the other bills, SB 7 and HB 16, would cost the state. Initial drafts of the 2026-27 state budget include $2.5 billion to expand Texas’ water supplies and improve related infrastructure.
In January, Perry told Community Impact he hoped lawmakers would spend $5 billion on water this session and $1 billion each year moving forward.
“Just last year, transportation got $5.8 billion and we're over here arguing about $1 versus $2.5 [billion],” Sarah Kirkle, policy and legislative director for the Texas Water Association, said during the March 3 panel. “We need a higher number, and we need to solve this problem according to the answers that we already know.”
Next steps
The bills must be discussed in legislative committees before they reach either chamber floor.
HJR 7, the House’s water funding plan, is scheduled for a March 19 hearing in the House Natural Resources Committee, which Harris chairs. Perry’s proposals had not been given hearings as of March 14, though they are priorities of Lt. Gov. Dan Patrick, who leads the Senate.
“We need to invest money every year into building water projects, or we’re going to be way behind,” Patrick said during a Feb. 20 speech to members of the conservative Texas Public Policy Foundation. “[After] this session... this is a place where the lights will come on when you hit the switch and the water will run when you turn the spigot.”
