Overview
- Proposition 4 would dedicate $1 billion annually from sales and insurance premium taxes to the Texas Water Fund from 2027 through 2047.
- State law steers roughly half of the new money to expanding water supplies and the rest to repairing or building infrastructure, with projects selected by the Texas Water Development Board.
- Texas voters previously approved a separate $1 billion in 2023, and state data show nearly $223 million has been awarded to more than 40 largely rural drinking-water projects.
- Following calls for clearer accounting, lawmakers enacted Senate Bill 7 to strengthen reporting and oversight of how water funds are awarded and used.
- Supporters cite population growth and shrinking supplies, while critics argue major water spending should go through the regular budget rather than earmarked revenue streams.