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Texas Water Newsroom

Proposition 4 timeline: Looking ahead to 2029 Posted on November 20, 2025

 Water tower and associated infrastructure in Round Rock, Texas

Texans made history earlier this month by approving Proposition 4 on the constitutional amendments ballot on November 4, which dedicates up to $1 billion a year for 20 years to the Texas Water Fund. And while this milestone marks the beginning of addressing mounting water supply, infrastructure, and reliability needs across the state, it is contingent upon a couple of factors:

  1. The funding must be appropriated by the Texas Legislature each session.
  2. The state sales and use tax revenue must exceed $46.5 billion.

If those two conditions are met (legislative appropriation and availability of revenue coming into the state treasury), funding may be transferred by the Texas Comptroller of Public Accounts to the Texas Water Fund and may be available for financial assistance through the Texas Water Development Board (TWDB).

If the collected sales tax revenue does not exceed $46.5 billion in a state fiscal year, then no money will be transferred to the Texas Water Fund. If funds are transferred, they will be administered by the TWDB and used to help finance water projects across the state. At the earliest, the TWDB may have funds available through its financial assistance programs in state fiscal year 2029.

Timeline for the funding provided by Proposition 4

“It’s an exciting time for Texas—we’ve now seen two sessions where the Texas Legislature recognized the growing need to address water issues facing the state and took action with historic investment for these critical initiatives so that Texas can continue to thrive for generations to come,” said TWDB Executive Administrator Bryan McMath.

The Texas Water Fund supports the TWDB mission of leading the state's efforts in ensuring a secure water future for Texas by helping communities implement cost‐effective water, wastewater, and flood projects through new and existing TWDB financial assistance programs. The costs associated with these types of projects can often make them difficult for some communities to implement. More information on funding needs for water and wastewater infrastructure across the state, as well as water supply strategies recommended in the state water plan and flood mitigation solutions recommended in the state flood plan, can be found in this infographic. By providing low‐cost, flexible financing options, the funding provides economic opportunity for communities to overcome cost hurdles.

The TWDB may only use the Texas Water Fund to transfer money to the following funds or accounts administered by the TWDB:

These funds and accounts serve different needs but collectively enable the TWDB to fulfill its mission and the Texas Legislature’s priorities for use of the Texas Water Fund. The TWDB is required to use a portion of the money transferred from the Texas Water Fund for water and wastewater infrastructure projects, including projects to rehabilitate or replace deficient or deteriorating infrastructure, and for grants to rural political subdivisions and municipalities with a population less than 150,000.

Additionally, a portion of funding must be directed to projects in which all required state or federal permitting has been substantially completed, to water conservation strategies, to water loss mitigation projects, and to the statewide water public awareness program. Finally, some funds must also be used to provide technical assistance for applicants in obtaining and using financial assistance from the TWDB.

The TWDB has not yet developed an allocation plan for the potential Texas Water Fund money that may be available in 2029. But the agency prioritizes stakeholder input when developing implementation plans and will publicize opportunities for feedback on its website, social media channels, and through emails. Stay informed by subscribing to the TWDB “General Information” and “Financial Assistance” email lists. 

See the TWDB Proposition 4 and Texas Water Fund Frequently Asked Questions for more details.

The TWDB is the state agency charged with collecting and disseminating water-related data, assisting with regional water and flood planning, and preparing the state water and flood plans. The TWDB administers cost-effective financial assistance programs for the construction of water supply, wastewater treatment, flood mitigation, and agricultural water conservation projects. 

This article is posted in Financial Assistance / Water Supply .