In a bold move to confront Texas’s growing water crisis, Governor Greg Abbott has signed Senate Bill 7 (SB 7) into law, launching what could be the most ambitious water infrastructure plan in the state’s history. With a projected investment of $20 billion over the coming decades, this initiative aims to tackle aging infrastructure, dwindling supplies, and a rapidly growing population.
What’s in the Plan? The new law commits an immediate $2.5 billion to create the Texas Water Fund, with annual allocations of $1 billion starting in 2027 drawn from state sales tax revenues. The fund will support a wide range of projects, including:
- Repairing and replacing aging water pipes across urban and rural areas
- Developing new water sources, such as desalination plants and aquifer storage
- Upgrading wastewater treatment and stormwater systems
- Strengthening conservation and water-loss reduction efforts
Why Now? Texas faces a perfect storm: booming population growth, prolonged droughts, and deteriorating infrastructure. With more than 7,000 public water systems and many facilities over 50 years old, the need for modernization is urgent. The 2022 State Water Plan warned that without significant investment, Texas could face a shortfall of 7 million acre-feet of water by 2070.
A Vote of Confidence — and a Real Vote Ahead The bipartisan support for SB 7 reflects a rare moment of unity on infrastructure needs. However, the plan still requires voter approval in November to activate its full funding mechanism. If passed, it will become a generational investment in water resiliency.
Environmental and Equity Considerations While widely praised, the plan also raises important questions. Environmental groups are cautious about overreliance on desalination and long-distance pipelines, which can disrupt ecosystems and disproportionately affect rural communities. Advocates stress the importance of transparency, equity in project distribution, and investment in nature-based solutions like aquifer recharge and watershed restoration.
Looking Ahead SB 7 sets the stage for Texas to lead the nation in innovative water management. It promises not just pipes and pumps, but a resilient, forward-looking approach to sustaining life and growth in a state where every drop counts.
Stay Informed Texans will have a crucial voice in shaping this future. The upcoming referendum is more than a vote on funding—it’s a vote on water security for generations to come.
To learn more about how this plan could impact your region or organization, reach out to the team at BCG today.
