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New state funding and HB500 could deliver one‑time grants to Texas water systems, TWDB says

Drinking Water Advisory Work Group (TCEQ) · January 28, 2026
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Summary

The Texas Water Development Board told TCEQ’s Drinking Water Advisory Work Group that voter‑approved Proposition 4 will dedicate $1 billion annually to water projects and that House Bill 500 creates a one‑time 100% grant program for political subdivisions; TWDB urged applicants to prepare audits and reporting ahead of application windows.

Scott Galloway, an outreach specialist at the Texas Water Development Board, told the Texas Commission on Environmental Quality’s Drinking Water Advisory Work Group on Jan. 13 that Proposition 4 will dedicate $1,000,000,000 a year for 20 years to water‑supply projects and aging infrastructure, split roughly 50/50.

Galloway said the fund is a sales‑tax carve‑out that will deposit money into an umbrella Texas Water Fund and then into existing financial‑assistance programs. "It's $1,000,000,000 annually for the next 20 years for water supply projects," he said. He warned that guardrails and thresholds must be met before deposits begin and that program details will vary by cycle.

The TWDB also…

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