Texas Water Fund
The Texas Water Fund is a special fund in the state treasury outside the general revenue fund that is administered by the TWDB. Senate Bill 28 and Senate Joint Resolution 75, passed in 2023 by the 88th Texas Legislature, provided for creation of the fund. In the November 2023 election, Texas voters passed Proposition 6 (associated with Senate Joint Resolution 75), creating the Texas Water Fund to assist in financing water projects in Texas. The Texas Water Fund is not a TWDB financial assistance program and cannot offer loans or grants directly. Rather, it enables the TWDB to provide funding through existing financial assistance programs and the newly created New Water Supply Fund for Texas.
In 2025, the 89th Texas Legislature passed Senate Bill 7, which made some changes to the Texas Water Fund statute. The legislature also passed House Joint Resolution 7, which proposes a constitutional amendment (Proposition 4) that will appear on the November 2025 ballot, to dedicate a portion of the revenue derived from state sales and use taxes to the Texas Water Fund and to provide for the allocation and use of that revenue.
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Proposition 4 Frequently Asked Questions