89th Legislative Session makes a generational investment in water Posted on July 9, 2025

The 89th Texas Legislative Session (2025) generated significant legislation focused on addressing water supply and infrastructure needs and flood mitigation efforts in Texas, as well as the science and planning that contribute to those efforts. The bills that passed will have a large impact on the work of the Texas Water Development Board (TWDB)—the state's water and flood planning, science, and financing agency.  

The 89th Legislature’s work isn’t finished, however, as Governor Abbott has called for a special session to address a variety of issues—including water and flood—that need further attention. The 30-day special session starts on July 21.

What follows in this article are the highlights from the regular session that support the TWDB in fulfilling its mission to ensure a secure water future for Texas. 

$20 billion over 20 years to the Texas Water Fund  

Senate Bill (SB) 7 and House Joint Resolution (HJR) 7 were two headliners from the 89th Session. HJR 7 proposes a constitutional amendment that dedicates $1 billion of state sales and use tax revenue annually for 20 years to the Texas Water Fund beginning September 1, 2027. If Texas voters pass Proposition 4 in November, it will help ensure a stable, long-term funding stream for water, wastewater, and flood projects across Texas.  

SB 7 updates the statutory framework of the Texas Water Fund to strengthen the capacity of the TWDB to support critical water, wastewater, and flood mitigation needs throughout the state. It also creates the Texas Water Fund Administrative Fund, broadens project eligibility under the New Water Supply for Texas Fund, and increases the amount of financial assistance that is potentially available to communities through the Economically Distressed Areas Program. 

Other funding for water infrastructure, administration, and research 

While SB 7 and HJR 7 may have received most of the media attention this session, the legislature provided other funding that will help strengthen Texas’ water infrastructure as well. House Bill 500 appropriates over $2.6 billion in one-time funding to the TWDB in multiple areas, including the following: 

• $1.03 billion for water supply and infrastructure projects
• $881 million from the Texas Water Fund 
• $581 million for specific local water projects outlined in the state budget
• $131 million to the Clean Water and Drinking Water State Revolving Funds—which ensures those funds will receive hundreds of millions more in federal grants 
• $1.1 million for IT risk mitigation measures to enhance security and operational stability
• $2.7 million for data center services so the TWDB can maintain its obligations under the state’s shared services model  

In addition, SB 1 provides funding for new employees to help the TWDB administer these funds as well as $7.5 million in the General Appropriations Act to fund grants to groundwater conservation districts for research, science, and data collection projects. 

Rural and economically distressed community assistance 

The passage of SB 7 expands financial assistance available through the Economically Distressed Areas Program, which offers grants and loans to help extend water supply and wastewater services to underserved and low-income communities that lack access to basic infrastructure. Specifically, the bill increases the TWDB’s bonding authority to $100 million annually and raises the cap on the grant component of funding through the program from 70 to 90 percent.   

Additionally, $1.5 million per year for the next two years will go to the Water Utilities Technical Assistance Program, which provides Texas water and wastewater utilities with the financial, managerial, and technical assistance necessary to apply for financial assistance from the TWDB.  

Also, SB 971 corrects a scrivener’s error made during the 88th Legislature in defining the term “rural political subdivision.” The updated definition standardizes eligibility across TWDB financial assistance programs and explicitly excludes political subdivisions with service areas whose population exceeds 50,000. 

TexMesonet expansion  

The legislature provided nearly $1 million for the TexMesonet network, a statewide resource for hydrometeorological data benefitting weather forecasting, flood preparedness, drought monitoring, wildfire management, water resource planning, and similar efforts. This funding will help expand the TexMesonet network by approximately 25 stations and get Texas closer to achieving statewide hydrometeorological coverage. It also includes the development of a statewide evapotranspiration dataset vital for agricultural and conservation planning. 

The investments made during the 89th legislative session set the state up well for the future. Providing the TWDB with additional financial and administrative support ensures the agency is better equipped than ever to ensure that Texans have access to sufficient, clean, and affordable water supplies moving forward. 

This article is posted in Water Planning / Flood / State Project / Financial Assistance / Water Supply .