Texas Senate Committee Passes Major Water Bill

The Texas Senate Water, Agriculture, and Rural Affairs Committee unanimously approved a bill that will allocate $1 billion annually for water projects in Texas. Senator Charles Perry (R), who chairs the committee, introduced the bill to address the state’s future water needs. Perry warned that Texas' current water supply and infrastructure will not meet the state’s demand in the coming decades.

Sen. Perry explained that the state's aquifers are depleting, and almost all surface water is already spoken for. He pointed to the agriculture sector, which is already struggling with water shortages. Sen. Perry noted that the state’s only sugar mill closed last year due to a lack of water, and farmers across the state are preparing for decreased production. He also said industrial companies are questioning whether Texas can meet future water needs, influencing decisions on where to expand. Cities and counties are cutting back on development, worried that they won't have enough water to support new residents.

“Half of the state’s rural water associations believe they will run out of water in the next 20 years,” Perry said. He added that his bill, Senate Bill 7, will provide a permanent $1 billion annual funding stream for water projects, ensuring the state can meet its future water demands.

Voters approved the creation of the Texas Water Fund in 2023, which received a one-time $1 billion allocation. Sen. Perry’s bill aims to make that annual appropriation permanent, with 80% of the funds dedicated to developing new water sources.

The bill also increases the authority of the Texas Water Development Board (TWDB). Under the new proposal, the TWDB will approve financing for new water projects, set standards for water infrastructure, and ensure that all regions work together. Perry said the bill would encourage the development of non-traditional water supply options and include flood mitigation projects under TWDB oversight.

Perry emphasized that the fund will not finance projects that deplete existing water supplies by moving water from one region to another.

“We cannot move water from one part of the state to another,” said Perry. “We have to develop new sources and not deplete the existing resources any more than we already have.”

The bill now heads to the full Senate for further consideration.