Texas Launches $20 Billion Water Infrastructure Plan, Pending Voter Approval

Governor Greg Abbott has signed into law a sweeping water infrastructure package aimed at tackling Texas’ growing water crisis. The initiative, set to total $20 billion over several years, marks one of the most significant investments in the state’s water systems in decades, but it still needs the green light from voters this November.

If approved at the ballot box, the plan would redirect $1 billion in state sales tax revenue annually starting in 2027 to fund water projects. Separately, a guaranteed $2.5 billion will be added to the newly created Texas Water Fund, regardless of how voters respond, as reported by Houston Chronicle.

At a signing ceremony in Lubbock, Gov. Abbott framed the move as urgent and long overdue.

“Texas confronted a crisis,” Abbott said. “We’re not just facing dwindling water supplies, we’re wasting 88 billion gallons a year due to busted, outdated pipes.”

The plan comes as water shortages intensify across the state, especially in agriculture-heavy areas like the Rio Grande Valley and West Texas, where farmers have struggled to access reliable water for crops.

Getting the plan passed required bridging major policy differences. State Sen. Charles Perry had pushed for prioritizing new water sources, like desalination plants or importing water from other regions. On the other side, Rep. Cody Harris argued for flexibility to focus on long-overdue repairs to aging infrastructure.

After months of negotiations, the Legislature reached a compromise: the final legislation splits funding 50/50 between new water projects and system repairs. The effort ultimately passed as two bills, one laying out the financing strategy, and the other proposing a constitutional amendment that voters will weigh in on this fall.

The initiative gained support across party lines and from influential organizations. Conservative groups like the Texas Policy Research Foundation endorsed the investment. At the same time, environmental groups such as Environment Texas, Sierra Club, and Public Citizen expressed mixed feelings.

“This is a cultural shift,” said Sen. Perry. “We’re moving from fragmented, city-by-city approaches to a more coordinated statewide plan.”