When Texans went to the polls on November 4, they voted “yes” to Proposition 4. Prop 4 amends the Texas Constitution to require that the first $1 billion in net sales tax revenue, after revenue exceeds $46.5 billion, be allocated to the Texas Water Fund. When results of the general election are officially certified, it will take effect September 1, 2027.
According to the Watershed Association, Proposition 4 is a “once-in-a-generation opportunity” to meet the water challenges that Texas faces.
“Texas’ population is projected to grow more than 70% by 2070, from 29.5 million to over 51 million, while existing water supplies are expected to decline by 18%, and demands will rise by 17%. At the same time, our built and natural water systems, from aging pipes to fragile aquifers and springfed rivers, are under unprecedented stress,” said Watershed Executive Director David Baker.
“This measure doesn’t raise taxes and ensures consistent, long-term funding to repair and modernize our aging water systems, helping communities across Texas secure a more resilient future,” Baker said. “Texas is growing faster than its water supply can sustain. With an estimated $150 billion in water, wastewater, and flood infrastructure needs identified over the next two decades, Proposition 4 represented a historic opportunity to meet those demands head-on.”
Supporters of the bill included the American Council of Engineering Companies of Texas, Texas 2036, Texas Association of Manufacturers, Texas Economic Development Council, Texas Farm Bureau (AGFUND), Texas Oil and Gas Association, Texas Water Association, Texas Water Infrastructure Network (TXWIN), Texas Water Supply Partners, and The Nature Conservancy in Texas. Jeremy B. Mazur, director of Infrastructure and Natural Resources Policy at Texas 2036, said, “Texas 2036 says that the state will need to invest at least $154 billion during the coming decades toward expanding our water supply portfolio and fixing aging, deteriorating systems. We estimate that existing state and federal funding programs will cover roughly 25% of this need. This will leave a long-term water infrastructure funding gap of $110 billion. HJR 7 addresses this problem, in part, with its $1 billion per year revenue dedication to the Texas Water Fund.”
However, Texas Policy Research opposed the amendment, saying, “While addressing water infrastructure is vital, the resolution undermines limited government and fiscal transparency by embedding automatic spending into the constitution. It crowds out private-sector solutions, reduces future tax relief opportunities, and limits legislative accountability for long-term fiscal commitments.”
