Texas directs $223 million to rural water infrastructure upgrades as voters weigh new $20 billion funding plan

Texas has allocated more than $223 million from its voter-approved Texas Water Fund to over 40 projects improving rural water infrastructure, according to data from the Texas Water Development Board. The funding supports upgrades to storage tanks, water wells, distribution lines, and drinking water systems across communities with populations under 10,000. 

According to a report from The Texas Tribune, the investment is part of the $1 billion water fund approved by voters in 2023 to help stabilize aging water systems and expand supply through conservation and reuse initiatives. Nearly $735 million of the fund has now been committed statewide, with roughly one-quarter directed to small and rural systems struggling to maintain service amid inflation and rising construction costs.

As those projects advance, Texas voters are preparing to decide whether to extend the funding stream through Proposition 4, a constitutional amendment on the November 2025 ballot that would authorize $20 billion in additional water infrastructure and supply investments over the next two decades, Texas Tribune reported.

If approved, the expanded fund would prioritize desalination, aquifer storage, reuse, and rural system upgrades, while also introducing stronger legislative oversight. Water industry leaders say the added investment is essential to address Texas’ projected $154 billion water infrastructure gap by 2050.

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