Senate Finance committee adopts HJR 7 substitute, debates $1 billion-a-year Texas Water Fund and 80/20 supply split

The Senate Committee on Finance adopted a committee substitute to HJR 7 and spent the hearing weighing whether a constitutionally dedicated revenue stream should be strictly apportioned with most money going to new water supply projects.

Senator Perry, who presented the committee substitute, told the panel the measure would “constitutionally dedicate a $1,000,000,000 per year to [a] Texas Water Fund for a 16 year term,” and said the money must be weighted toward new supply to address projected shortfalls.

The legislation would create a dedicated, long‑term revenue source to fund projects the Texas Water Development Board and regional planners identify as needed to address supply, wastewater and flood infrastructure. Senator Perry said the state water plan projects a shortfall and that accelerating population growth, drought and development make the gap more urgent. “We are 6,000,000 acre feet minimum, probably more than that, short of water supply needs,” he told the committee.

Supporters — including trade groups, engineering firms, environmental organizations and local water authorities — described a large unmet infrastructure need and urged action, while offering…