Houston’s proposed Capital Improvement Plan for fiscal year 2026-2030 is prioritizing nearly half of its funding to improving the city’s water and wastewater infrastructure.

At a glance

The proposed $16.7 billion budget is a $2.2 billion increase compared to FY 2025-2029, according to the June 9 presentation during the Budget & Fiscal Affairs Committee meeting

Half of the CIP is going towards improving the city’s water and wastewater infrastructure, with the water utility system receiving $4.3 billion and wastewater treatment facilities receiving $3.8 billion.

Alma Tamborello, the acting director for treasury and capital management at the Finance Department, said the most expensive project for water infrastructure is the city’s improvement plan for the East Water Purification Plant at $2.1 billion.


The project will improve on the city’s 70-year-old purification plant that serves 1.9 million residents, according to previous Community Impact reporting. The project is anticipated to begin construction in 2029 and be completed by 2034. The project will include raising water bills, but city officials said it currently unknown by when or how much.

What else?

Nearly $2.6 billion is going to Build Houston Forward, an initiative to improve the city’s drainage system and streets. Funding is going towards projects such as:
  • $750 million: Citywide street and traffic rehabilitation
  • $775 million: Neighborhood drainage
  • $131 million: Regional stormwater detention
  • $128 million: Lake Houston Dam Spillway Improvement Project
The Houston Airport System will also receive $2.7 billion to expand, update and maintain the airport system, with each airport receiving their own funding for projects such as:
  • $2.01 billion: George Bush International (IAH) for the Terminal B redevelopment project
  • $643 million: William P. Hobby (HOU) for improvements to the airport’s taxiway and runways, restrooms and HVAC system
  • $49 million: Ellington Field (EFD)/Spaceport for improvements to its airfield and drainage master plan construction
Another $913 million is going towards public improvement projects such as:
  • $246 million: Over the next five years towards city vehicles
  • $112 million: Repairs to municipal courts as part of Hurricane Harvey recovery
  • $18.3 million: New fire station located at 5830 Old Spanish Trail in South Houston
  • $16.8 million: New fire station located at 910 Forest Cove Drive in Kingwood
What’s next?

City officials are able to make amendments to the project list until June 13. City Council is expected to vote on the CIP between June 17-25, according to the presentation.