At a glance
In November, Texas voters will be asked to sign off on House Joint Resolution 7. The proposal would amend the Texas Constitution to send $1 billion annually in sales and use tax revenue to the Texas Water Fund, a state account created in 2023 to help finance water projects.
If voters approve the constitutional amendment, the state would move $20 billion in total to the fund from 2027-47. Half of that money would be spent on new water supply projects, and it could also be used to repair existing water systems, invest in flood infrastructure and desalinate—or remove salt and other minerals from—seawater and groundwater.
Lawmakers also passed Senate Bill 7, which details how the state plans to finance and oversee the new funding.
“We all know that we're short on water now, and we will be even more short going forward,” Gov. Greg Abbott told reporters during a June 11 interview. “[This legislation] helps ensure more new sources of water supply, [and] will help us expend the money that's needed to do the massive repairs to water pipes and water systems. We lose 185 billion gallons of water a year because of broken pipes and leaky pipes—we’ve got a lot of work to do.”
The background
The Texas Water Development Board’s state water plan, which was published in 2021, estimates that about 51.5 million people will live in Texas by 2070. In that period, demand for water is expected to increase by 9% and existing water supplies are projected to decline by 18%, according to the plan.
State lawmakers found that “the projected shortfall could be underestimated” due to substantial population growth and increased droughts since 2021, according to a bill summary document.
As soon as 2030, insufficient water resources could cause Texas to lose about 785,000 jobs and $160 billion per year in the event of a “prolonged drought,” according to a report by the nonpartisan think tank Texas 2036.
“Farmers are already running out of water,” bill author Sen. Charles Perry, R-Lubbock, said during a March committee hearing. “The state’s only sugar mill closed last year due to water scarcity. Cotton, grain and rice growers in several regions of our state are planning on less production each year. ... [Manufacturing] site selectors are debating whether Texas will have enough water if they come to build their factories.”
Since 2021, several Texas cities, including Dripping Springs, Conroe and Magnolia, have paused new development for a temporary period to prevent water shortages.
Also of note
During the June 11 interview, Abbott also emphasized the importance of strong cybersecurity infrastructure as Texas works to strengthen its water and energy systems.
“There have been stories where power systems were shut down, water systems were shut down, things like that, because of cyber attacks,” he told reporters. “Everything that we're working to try to expand and grow and maintain could be shut down by cyber attack. We need to upgrade and upgrade quickly.”
In early June, Abbott signed House Bill 150 into law. The measure, which takes effect Sept. 1, will create a San Antonio-based state cyber command center designed to anticipate and respond to potential cybersecurity threats.
Abbott said June 2 that cyberattacks from “hostile countries” happen frequently, endangering law enforcement agencies, health care centers and the state power grid.
“Texas—whether it be the state or local communities—we get hit by about 10,000 cybersecurity attacks... every day,” Abbott said June 11. “We've got to be perfect perpetually. They only have to be right one time.”
