By Rebekah Chenelle, Vice President of Public Policy
As we approach the halfway point of the 89th Texas Legislative Session, we’re seeing meaningful progress on one of the Dallas Regional Chamber’s (DRC) top legislative priorities: securing a dedicated funding source for our state’s water infrastructure.
Here’s a look at where we stand—and what happens next.
Governor makes water an emergency item
In his State of the State address on Sunday, Feb. 2, Gov. Greg Abbott declared water infrastructure an emergency item, charging the legislature with making a historic investment to secure Texas’ water future for the next 50 years. This designation fast-tracks legislation addressing our water needs – a critical step as North Texas continues its rapid growth.
We at the DRC are grateful Gov. Abbott elevated this issue. A long-term funding plan for water is critical to preparing us for decades of expansion, so we made water a top item on our legislative agenda and joined a statewide push for a dedicated funding source for water infrastructure.
House, Senate take action
On Thursday, March 6, two joint resolutions were filed to establish $1 billion in dedicated funding allocated annually to the Texas Water Fund, which was established in November 2023 following DRC advocacy efforts.
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- Senate Joint Resolution 66, filed by Chairman Charles Perry, proposes funding through a combination of $500 million from sales and use taxes and $500 million from insurance premium taxes. This resolution ensures at least 80% of funds would be directed toward new infrastructure projects.
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- House Joint Resolution 7, filed by Chairman Cody Harris, establishes the fund solely from sales and use tax revenue without specifying allocations.
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The joint resolutions establish where the funds come from and how much is dedicated, while complementary bills establish the administration of the Texas Water Fund for water projects in Texas. Chairman Harris filed House Bill 16 on Friday, March 7, and Chairman Perry filed Senate Bill 7 on Thursday, March 13, each proposing their own administration framework.
When a bill or joint resolution is given a low number as these have been, it is deemed a priority in its respective chamber. The DRC thanks Lieutenant Governor Dan Patrick and House Speaker Dustin Burrows for prioritizing investments in our state’s water infrastructure.
Why this matters for North Texas
With our region adding approximately 400 new residents daily and Dallas-Fort Worth set to become the nation’s third-largest metro by 2028, our aging water infrastructure faces unprecedented demands.
As Rebecca Trevino, Chief Financial Officer of the Texas Water Development Board, noted at a DRC event, a lack of dependable water could result in statewide economic losses of up to $100 billion and hundreds of thousands of job losses.
What comes next?
As the 89th Legislative Session continues, these bills and joint resolutions have a way to go until the finish line. We expect changes as the House and Senate reconcile their plans to send one joint resolution to voters this November and one bill to Gov. Abbott’s desk for signature. Joint resolutions must pass with a two-thirds majority vote before the constitutional amendment is placed on our ballots as a proposition.
As a first step forward, HJR 7 is scheduled for a committee hearing on Wednesday, March 19.
As always, the DRC will continue to work with our member companies, the legislature, and our statewide partners to ensure the voice of the business community is represented in the conversations ahead and that adequate investments are made to secure prosperity for current and future Texans.
Are our state’s water needs impacting your business? We want to know about it. Send me a note, and let’s work together.