Texas Water Funding Proposal Prioritizes Supply Over Infrastructure Repairs

A proposed constitutional amendment to create a long-term, reliable funding source for Texas water projects would prioritize increasing supply over fixing aging infrastructure, according to its sponsor, Senator Charles Perry (R).

The Senate Finance Committee heard testimony on HJR 7, a measure that would dedicate $1 billion annually from state sales tax revenue toward water needs through 2075. The resolution, already passed by the House, originally left allocation decisions to the Texas Water Development Board. However, the Senate version now under consideration requires that 80% of the funds be directed to new water supply projects.

“It will be weighted majority more for supply, or we did not get supply funded,” said Perry. “This would be probably the last train out on water conversations for a long time, and if we don’t meet that need, we will have missed our boat.”

Perry also authored SB 7, a sweeping plan to address the state’s projected water shortfall, which he estimates could reach six million acre-feet by 2050. Current annual usage is about 15 million acre-feet. Although Texas loses billions of gallons of water annually through leaky infrastructure, Perry argued the impact on the overall water supply is minimal.

“If we could stop all leaks today, it produces 463,000 acre-feet,” he said. “That’s less than six percent of the total water supply needs – and it’s not actually increasing supply, it’s just extending existing supply.”

While acknowledging the 80/20 split may change during negotiations with the House, Perry stressed that constitutional language protecting funding for new supply is essential. He warned that without such safeguards, densely populated urban areas could dominate the allocation process, diverting funds toward infrastructure repairs.

“The political pressures of just that sheer population would shove most of that money towards fixing leaking pipes and the state would’ve missed the opportunity with the limited funds available to actually address a supply need that is critical to continue the ‘Texas Miracle’ as we know it for decades to come,” Perry said.

If approved by voters, the funding wouldn’t begin until the 2028–2029 biennium, continuing for 16 years. Perry said this timeline reflects the long lead times required to plan and construct major water projects.

“In sixteen years, I anticipate... there will be significant movement and some ‘wins,’ if you will, on actual supply,” he said.

In the meantime, both the House and Senate versions of the state budget include $2.5 billion to jump-start the new water fund.