Now that the Texas Legislature has wrapped its regular session, one issue stands at the forefront: water. In 2023, lawmakers created the Texas Water Fund with $1 billion to begin addressing the state’s $154 billion water infrastructure backlog. This year, legislators added another $2.6 billion and set the stage for a historic investment—$20 billion over the next 20 years. That long-term funding hinges on voter approval this November. Legislative Action The framework comes from Senate Bill 7 (SB 7) and House Joint Resolution 7 (HJR 7), authored by Sen. Charles Perry and Rep. Cody Harris. SB 7 restructures oversight and expands eligible projects. HJR 7 proposes a constitutional amendment to dedicate $1 billion annually from surplus state sales tax revenue. The current budget (Senate Bill 1) and Supplemental Budget Bill (House Bill 500) also include major water investments: $1B for water supply/infrastructure $881M to the Texas Water Fund $581M for newly eligible projects $130M to unlock federal matching funds What Happens Next The first part of SB 7 takes effect September 1. The second part, and the annual $1 billion dedication, only takes effect if voters approve HJR 7 on November 4. Houston Public Works completed a survey this week asking community stakeholders to identify local needs and priorities ahead of the election. Click here to read an expanded analysis of the bill. Ballot Language: November 4, 2025 ballot: "The constitutional amendment 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.” Why Water Funding Matters for Houston As the nation’s fifth most populous metro area, Houston relies on a vast and aging water infrastructure system to serve more than 7.8 million residents and fuel one of the country’s most dynamic economies. The region provides water to hundreds of industrial users and manages a growing population with increasingly complex demands. At the same time, chronic underinvestment and storm-related damage have left the system strained. Long-term, reliable state funding is critical to ensuring Houston can maintain and expand its water supply while modernizing the infrastructure that supports economic growth, public health, and resilience. A Vote “For” HJR 7 Means: Up to $1B per year of sales tax revenue above $46.5B goes to the Texas Water Fund (the Comptroller’s revenue estimate for fiscal year 2026 is $51.2 billion) Reduced dependence on annual legislative appropriations Priority funding for new water supply and infrastructure projects If approved, the funding starts in 2027 and runs through 2047. Lawmakers have the option extend the dedicated funding stream. Houston’s Stake Houston stands to benefit significantly, with over $265 million already earmarked for local projects. The city faces $480 million in infrastructure needs and could be central to an interim study on including wastewater projects in future state water plans. The outcome of this vote will determine whether communities across Texas have a sustainable, long-term water funding source.

As Houston continues to grow and evolve, the importance of robust and forward-thinking infrastructure becomes increasingly paramount. The Greater Houston Partnership's Transportation & Infrastructure Advisory Committee is at the forefront of shaping policies and initiatives that ensure our region's infrastructure meets the demands of today and the challenges of tomorrow.  Chaired by Dilip Choudhuri, President and CEO of Walter P Moore, the committee brings together leaders from across industries to shape Houston’s infrastructure priorities at the local, state, and federal levels.  “Big cities are the economic engine that drive the country,” said Choudhuri in a recent fireside chat with committee members. “And what impacts a big city? It’s all the infrastructure.”  What the Committee Is Focused On  In 2025, the committee’s work centers on key initiatives that support economic development, mobility, and climate resilience, including:  Water Infrastructure: Advocating for long-term investment in Houston’s water systems during the 89th Texas Legislative Session to maintain competitiveness.  Flood Mitigation: Supporting funding tools like the Flood Infrastructure Fund, which the Partnership helped advance to ensure a more resilient Gulf Coast region.  Waterways and Ports: Backing initiatives like Port Houston’s Project 12 and the Coastal Texas Program (Ike Dike), a generational project that received $550 million in state funding in 2023 thanks in part to Partnership advocacy.  Roadways and Mobility: Pushing for consistent and flexible funding from TxDOT and advancing critical projects like the North Houston Highway Improvement Project (NHHIP).  “Delays cause cost increases, and there’s not a whole lot of extra money to fund projects,” Choudhuri noted. “We need to be good stewards of those dollars, and that starts with consistent planning and coordination.”  Planning for the Future Means Modernizing How We Build  Choudhuri, who has helped transform Walter P Moore into a digital-first firm, brought a strong message to committee members: Houston can’t afford to solve 21st-century problems with 20th-century tools.  “Using technology and a digital process does not make you digital. You have to change the process,” he said. “It shouldn’t take two weeks to understand where you stand financially on a project. That is completely different, that’s process-level transformation.”  He emphasized the potential of connected vehicles to address congestion and described a future where engineers use AI and optimization tools to design infrastructure that balances sustainability, performance, and equity.  “Traditional tasks will be simplified by digital resources… Engineers will set a framework and lean on technology to optimize the solution.”  Why Business Voices Matter  The committee’s recent roundtable discussion surfaced shared concerns across industries, from permitting reform and project delivery timelines to digital connectivity and freight infrastructure. But it also reinforced the central idea that infrastructure isn’t just a government issue, it’s a business issue.  “Even if you’re not a subject matter expert in infrastructure, you all have opinions… you all feel the same challenges,” said Choudhuri. “This committee is about learning, sharing, and pushing to keep the agenda moving forward.”  Whether you’re focused on workforce access, regional mobility, or supply chain efficiency, insights from business and community leaders are critical to Houston’s future. “What impacts infrastructure impacts your business,” Choudhuri said. “And this committee is your platform to help shape smart, long-term solutions.”  Ready to make an impact?  Partnership members are central to impact work that advances opportunity and strengthens the region’s economy. Contact the member engagement team at member.engagement@houston.org to get involved.