Governor Greg Abbott signed a pair of bills Wednesday aimed at addressing Texas’ long-term water infrastructure needs, calling the legislation “the largest water law in the history of the great state of Texas.” The measures propose a $20 billion investment in water systems over the next 22 years.
Together, the bills create the framework for a revolving loan fund to support both new water sources and the repair of aging systems.
HJR 7 proposes a constitutional amendment to allocate $1 billion per year from 2027 to 2047 to the Texas Water Fund. Voter approval in November will be required for the amendment to take effect. SB 7 outlines how the Texas Water Development Board would manage and distribute the funding.
“Every day, on average in Texas, there’s more than 1,000 more people who go to a faucet and turn that on because of the magnitude of the growth,” Abbott said. “When they go to the faucet to turn it on, they expect the water to flow.”
The measures propose a $20 billion investment in water systems over the next 22 years
Abbott, who listed water infrastructure as a priority during his 2025 State of the State Address, pointed to challenges such as aging pipelines and the estimated annual loss of 88 billion gallons of water through leaks.
Under the plan, half of the funding would go toward developing new water supply sources, while the other half would be directed at infrastructure improvements. Loan repayments would be reinvested into future projects.
SB 7 also instructs the Texas Water Development Board to promote regional coordination of water projects, standardize infrastructure specifications, and reduce reliance on eminent domain by using existing utility easements when possible.
The legislation received strong bipartisan support, passing the House with 138 votes and clearing the Senate unanimously.
More than 150 industry workers and officials attended the ceremony, where Abbott described the legislation as a step toward ensuring Texans’ daily water needs are met well into the future.
