for Texas’ water infrastructure needs, HB 500 by state Rep. Greg Bonnen, R-Friendswood, provides a substantive and meaningful down payment toward these needs. HB 500 appropriated over $2.5 billion — effective June 22, 2025 — toward state water infrastructure. The timing of HB 500’s funding is important here. Proposition 4 requires that the dedication of $1 billion in state sales tax revenues to the Texas Water Fund begins in state fiscal year 2028, which starts on Sept. 1, 2027. These revenues must then be appropriated by the Legislature during the 2029 legislative session, making funding available for water infrastructure projects in late 2029. The substantive appropriation in HB 500 provides an immediate interim endowment — the largest one time appropriation for water infrastructure in Texas history — that will help jump- start water infrastructure development before the sales tax revenue dedication authorized by Proposition 4 begins. A BRIGHT SIGNAL AND THE ROAD AHEAD The outcome of the 2025 session and November’s election send a bright signal about what Texas is willing to do to secure its economic miracle. Just as the Legislature has approved significant investments for transportation, energy and workforce development — essential ingredients for continued economic growth and development — it has now done the same for water infrastructure. To this author’s knowledge, no other state has committed to a level of investment in water infrastructure equal in magnitude to what Texas has done. That proverbial adage about the comparative size of all things Texan appears to ring true here. Now that Proposition 4 has become law, both the Legislature and taxpayers will soon expect results and proof that they are getting what they paid for. The onus will be on state and local
water agencies, and the water industry as a whole, to show how this new financial strategy may be employed toward delivering water supplies for thirsty communities and fixing failing systems. Indeed, the performance measures in SB 7 will necessitate the thoughtful placement of “points on the board” when it comes to infrastructure development progress. But while this revenue dedication is historic and generational, it only lasts for 20 years. Unlike existing constitutional funding dedications for parks and highways, the 89th Legislature did not give future legislatures the easy option to extend this funding stream without having to amend the Texas Constitution. This does not mean that they cannot try: come 2043 or 2045, a future legislature may attempt to repurpose or re-propose what was accomplished in 2025. If this future generation of leaders is to be successful, however, there must be evidence that this new financial strategy worked to make our water infrastructure challenges better. Hard choices and harder work will be needed sooner rather than later for this to happen. Future generations of Texans will depend on this in more ways than one. n
Jeremy B. Mazur is the director for infrastructure and natural resources policy at Texas 2036, a nonprofit organization building long-term, data-driven strategies to secure Texas’ continued prosperity for years to come. We engage Texans and their leaders in an honest conversation about our future, focusing on the big challenges. We offer nonpartisan ideas and modern solutions that are grounded in research and data to break through the gridlock on issues that matter most to all Texans. Smart strategies and systematic changes are critical to prepare Texas for the future.
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