Texas Planning to Spend Billions to Deal with Water Shortages

The state faces a major water problem.

Source : USDA NRCS Texas

June 16, 2025

Author : Alex Bustillos

Amid rising concerns about drought, climate change and population increase, Texas senators are enacting legislation that will allocate billions of dollars to water infrastructure projects throughout the state. 

A bipartisan effort is moving quickly through Austin to handle what authorities term an impending supply crisis.

Recently, the state’s Water Development Board may get more than $4 billion in financing if current legislation is passed. The fund would go toward building new reservoirs, treatment facilities, desalination plants and water reuse programs, all of which are key components in improving Texas’ old water systems.

Texas has had a number of extreme weather events in recent years and experts worry that the state’s current water system is not prepared to deal with extended droughts. State legislators have negotiated a tentative agreement that will considerably increase funds for conservation and construction projects. In addition, the Texas Comptroller’s Office says that municipal water consumption is likely to increase by over 20% by 2070, putting extra strain on already overburdened systems.

According to a Governing publication, the legislative package includes steps to expedite permitting, expand recycled water systems and invest in rural infrastructure. These updates are intended to lessen the state’s reliance on limited surface water resources. 

Several large-scale initiatives have already started in preparation for governmental support. El Paso has begun work on a $150 million advanced water purification facility that will allow the city to recycle wastewater into potable water, a first-of-its-kind endeavor in the United States.

Similar projects could be repeated in both urban and rural regions if the current legislative package is passed.  Local utilities are creating engineering and environmental plans in anticipation of the impending money. The proposal has received unusual bipartisan support.  

Lawmakers from both parties have recognized the need, particularly after a decade of near-constant drought conditions in various sections of the state.  The funding initiative also reflects federal goals.  As part of national initiatives to modernize old water infrastructure, states like Texas are encouraged to seek robust and climate-adaptive technologies, such as desalination and PFAS removal technology.

If the current bill is approved into law, money is scheduled to be disbursed in early 2026.  Priority projects are likely to include rural pipeline extensions, urban stormwater management systems, and water reuse technologies in high-growth areas such as North Texas and the Rio Grande Valley. 

While funding is a significant step forward, experts caution that its successful implementation would need collaboration among state agencies, private contractors, and local governments.

Category : Investment in Infrastructure State Government

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