Texas moves to create dedicated water fund as infrastructure needs surge

The Texas House passed Senate Bill 7, a bipartisan measure designed to fast-track investment in the state’s aging and overstressed water infrastructure.


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In a high-stakes Memorial Day vote, the Texas House passed Senate Bill 7, a bipartisan measure designed to fast-track investment in the state’s aging and overstressed water infrastructure. The 143–3 vote reflects growing urgency: the state is running out of water—and time.

SB 7, sponsored by Rep. Cody Harris (R–Palestine), lays the groundwork for what lawmakers hope will become a long-term, reliable stream of infrastructure funding. A key floor amendment broke weeks of deadlock between chambers: 50% of funds will now be allocated to water supply projects, while the other 50% will be directed at wastewater, aging infrastructure, and flood control—at the discretion of the Texas Water Development Board (TWDB).

The big picture

Texas faces a projected $154 billion water infrastructure funding need by 2050, according to nonprofit think tank Texas 2036. In places like Oak Hill, near Austin, aging pipes can’t even sustain the pressure needed to support fire hydrants. Statewide, leaky systems lose an estimated 122 billion gallons of water each year, exacerbated by drought and booming population growth.

To help communities make critical upgrades without shifting costs to consumers, the bill increases loan flexibility under the State Water Implementation Fund for Texas (SWIFT)—raising loan thresholds from 70% to 90% to ease the financial burden on local water suppliers.

What’s next

SB 7 is paired with House Joint Resolution 7, which would ask voters to approve a constitutional amendment dedicating $1 billion annually for the next 10 years to a new Texas Water Fund. If HJR 7 clears the Senate, it will head to the November 2025 ballot.

Together, the bills represent a turning point in Texas water policy: a unified commitment to fixing deteriorating infrastructure and expanding supply in the face of long-term scarcity.

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