Texas Proposition 4 could channel billions into state water infrastructure

Texas voters will decide this November whether to approve Proposition 4, a constitutional amendment that would create a long-term funding stream for statewide water infrastructure improvements. The measure would allocate up to $1 billion annually from existing sales tax revenues—beginning in 2027 and continuing through 2047—into the Texas Water Fund, overseen by the Texas Water Development Board. 

The new fund would support a range of projects, including repairing aging water systems, building new reservoirs, developing desalination and aquifer storage facilities, and expanding water reuse and conservation initiatives, KSST News reported. At least half of the money would be dedicated to expanding water supply capacity across the state. Supporters say the measure would help address a projected $154 billion water funding gap by 2050 without increasing taxes.

According to KSST News, the proposal comes as Texas faces surging demand on its water systems, particularly from the rapid expansion of data centers and other industrial facilities. Data centers, essential for cloud computing and artificial intelligence, often require large volumes of water for cooling, straining supplies in fast-growing regions such as Central Texas and the Hill Country.

If approved, Proposition 4 could provide Texas with a stable fiscal mechanism to modernize and expand its water infrastructure while balancing the needs of municipalities, agriculture, and industry. Analysts note, however, that effective oversight and prioritization will be essential to ensure funds are distributed equitably and achieve long-term sustainability goals.

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