Greg Abbott Launches $20 Billion Texas Water Plan
Texas Governor Greg Abbott signed two major bills into law on June 18, launching a landmark $20 billion investment aimed at tackling Texas' growing water shortages. Final funding approval for part of the plan will require voter consent in a November statewide ballot.
Newsweek contacted Abbott for comment on Thursday via email outside regular office hours.
Texas faces mounting water challenges driven by rapid population growth, frequent droughts and rising demands from agriculture and industry. Leaking infrastructure and dwindling supplies threaten quality of life and economic growth. Abbott's plan aims to secure the state's water future while addressing ongoing environmental concerns.
Texas suffered from severe drought in the summer of 2023, with only 11 percent of the Lone Star State drought free, according to the U.S. Drought Map, though more rainfall improved the situation in 2024.
In September 2024, Texas Agriculture Commissioner Sid Miller said the state loses "about a farm a week" because of water shortages.
Details of the Water Investment
The bills signed by Abbott-Senate Bill 7 (SB 7) and House Joint Resolution 7 (HJR 7)-target repairing aging water systems and investing in new supply sources. Half of the $20 billion allocation is earmarked for infrastructure upgrades and the other half will support projects such as pipelines and desalination.
Voter Approval and Immediate Funding
The plan requires voter approval of HJR 7 in November to dedicate $1 billion a year from state sales tax revenue, beginning in 2027. However, the $2.5 billion allocation for the Texas Water Fund is secured regardless of the November ballot result. The Texas Water Development Board will oversee project selection and funding distribution as the state shifts to a coordinated, regional strategy for water management.
Texas Water Context
Water scarcity is a recurring crisis in Texas. Years of drought, persistent population increases and intensified industrial use have stretched existing systems, forcing some cities to consider restricting development. The state also faces a backlog of expensive infrastructure repairs, with Houston alone reporting a $4.93 billion need because of leaking pipes according to city officials.
Texas Governor Greg Abbott: "We lose about 88 billion gallons of water a year because of broken, busted, and aged pipes."
State Senator Charles Perry: The new law represents "a cultural shift from the way we do water in Texas" and moved the focus to coordinated regional strategies.
Texas voters will decide on final funding through a constitutional amendment in November. If passed, the initiative will set aside $1 billion annually for water projects, beginning in 2027, with immediate funds supporting urgent infrastructure needs across the state.
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