By Rebekah Chenelle, Senior Vice President of Public Policy
North Texas companies and communities now have a path to the water security we need to thrive for the next two decades and beyond.
With the passage of Senate Bill 7 and House Joint Resolution 7 heading to Texas voters in November, Gov. Greg Abbott and our state legislators have established the most significant water investment in state history—dedicating $1 billion annually for the next 20 years to address our critical water needs.
When Gov. Abbott declared water an emergency item for the legislature in February, it validated what the DRC and our members have been saying: Texas cannot afford to wait on water. A long-term funding plan for water is critical to preparing us for decades of expansion, so we made water a top item on our legislative agenda and joined a statewide push for a dedicated funding source for water infrastructure. The DRC’s sustained advocacy, alongside our statewide partners, helped ensure the business community’s voice was heard throughout this process.
This news is a win for the Dallas Region and our business community. Here’s what you need to know—and what happens next.
What House Joint Resolution 7 accomplishes
HJR 7, which passed the Texas Senate on Tuesday, May 27, creates the constitutional framework for Texas’ historic water investment. This joint resolution will appear on the November 2025 ballot, asking voters to approve a constitutional amendment dedicating $1 billion annually from state sales and use tax revenue to the Texas Water Fund through 2047.
Voters created the Texas Water Fund in November 2023 when they passed the DRC’s Good for Texans propositions, which also infused a $1.5 billion down payment into the fund.
If approved by voters this November, HJR 7 will generate $20 billion over two decades, specifically for water infrastructure—the largest water investment in Texas history. The resolution required a two-thirds majority in both chambers, demonstrating the broad bipartisan support for addressing our water crisis.
What Senate Bill 7 delivers
This constitutional framework works hand-in-hand with Senate Bill 7, which cleared both chambers as of May 28, establishing how these billions will be administered and spent. The legislation creates a balanced approach to water funding:
- 50% for new water supply projects: Including desalination, treating oilfield wastewater, and other innovative water sources
- 50% for infrastructure maintenance and conservation: Repairing aging pipes, flood mitigation, and water conservation initiatives
This 50-50 split, negotiated during final legislative discussions, ensures communities can address both immediate infrastructure needs and long-term water supply challenges. The Texas Water Development Board will administer these funds, prioritizing projects that deliver the greatest benefit to Texas communities.
Immediate financial boost
Beyond the annual dedication, lawmakers also approved a one-time investment of $2.5 billion from the current budget surplus into the Texas Water Fund. Combined with existing funds, this immediate injection will jumpstart critical water projects across the state before the constitutional amendment even takes effect.
Why this matters for North Texas
North Texas continues to be one of the fastest-growing regions in America, adding approximately 400 new residents daily—equivalent to adding a city the size of Plano every decade. Our region is projected to become the nation’s third-largest metro area by 2028. This explosive growth places enormous strain on aging water infrastructure that wasn’t designed for today’s demands.
As we’ve consistently highlighted, water shortages could cost Texas up to $100 billion in economic losses and hundreds of thousands of jobs. For the business community, reliable water isn’t just about utility bills—it’s about maintaining the foundation for continued economic prosperity and competitiveness.
Looking ahead
While this $20 billion investment represents a historic step forward, experts estimate Texas needs approximately $154 billion by 2050 to fully address our water infrastructure needs. This legislation provides a strong foundation, but continued advocacy and innovation will be essential.
Of course, it’s ultimately up to Texas voters to implement these wins delivered by Gov. Abbott and our legislators by passing HJR 7 this fall. If approved, funding would begin flowing in 2026, providing immediate relief for communities across the state.
As we move toward November, the DRC will continue advocating for policies that ensure North Texas remains the premier destination for business growth and opportunity. We’ll keep our members informed as the ballot takes shape and work to ensure strong voter support for this critical investment.
How does this legislation impact your company? We want to know.