With Texas’ population increasing, longer droughts, and worsening floods, our water systems are under pressure like never before. Supplies are shrinking just as demand rises, and aging infrastructure can't keep up. If nothing is done, millions of Texans could face serious water shortages and flood risks in the years ahead.
The State Water Plan and State Flood Plan outline clear strategies to manage these growing challenges, but their success depends on having the support and funding needed to move from planning to implementation. This fall, Texans will have the chance to vote on Proposition 4, a constitutional amendment designed to address the state's growing water challenges with a dedicated stream of funding.
What Is Proposition 4?
Proposition 4 is a constitutional amendment that resulted from the passage of House Joint Resolution 7 (HJR 7) and its enabling legislation Senate Bill 7 (SB 7). Its main purpose is to establish a consistent, long-term funding source for water projects across the state. Proposition 4 will appear on the ballot this fall as follows:
“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."
If approved by voters, Proposition 4 would dedicate $1 billion each year to the Texas Water Fund, a special state fund established to finance water projects in Texas. The money would come from existing sales and use tax revenue, but only once collections exceed $46.5 billion in a given year. In other words, Proposition 4, if approved, wouldn’t create any new taxes. The $1 billion allocations would start in 2027 and last for 20 years, but may be suspended if a state of disaster is declared. While the allocations are set to be automatic, the Texas Legislature must still pass the state budget bill for these funds to be appropriated.
Learn more about Proposition 4 by reading our factsheet.
How the Funds Will Be Allocated
The Texas Water Development Board (TWDB), would be responsible for allocating these funds within the Texas Water Fund programs. However, Proposition 4 isn’t a blank check. At least 50% of the annual allocations must go toward the New Water Supply for Texas Fund and the State Water Implementation Fund for Texas (SWIFT). The New Water Supply for Texas Fund supports various projects - some of which are highly controversial - that add to the total volume of water available to Texans, such as reservoir construction, seawater desalination, reuse of oil and gas wastewater (“produced water”), a statewide water conveyance system, acquisition of water from out of state, water and wastewater reuse, and aquifer storage and recovery.
The focus of the SWIFT is solely on water infrastructure projects identified in the State Water Plan. This is an important accountability measure because it means there must be some level of support for the project locally for it to appear in the State Water Plan. However, there is no requirement for how this part of the funding must be split between the New Water Supply for Texas Fund and SWIFT.
The remaining 50% would be divided between the rest of the programs in the Texas Water Fund, including the Flood Infrastructure Fund, Agricultural Water Conservation Fund, Economically Distressed Areas Program (EDAP), Rural Water Assistance Fund, State Participation Program, Water Loan Assistance Fund, Texas Water Development Fund (DFund), and Clean Water and Drinking Water State Revolving Funds (to learn more about each program, take a look at our recent blog). This part of funding also doesn’t have any mandatory split, so how much each program receives will be left to future decisions.
Because there are no set rules on how funds must be divided in either portion of funding, public engagement is essential, if Proposition 4 is approved by voters this fall. It’s important to note that all of these programs do require a public process to identify projects that would be eligible, and, in some cases, such as the Flood Infrastructure Plan, require they be part of a state plan, in that case the State Flood Plan.
The Sierra Club Lone Star Chapter’s Position On Proposition 4
The Sierra Club supports Proposition 4 because it would improve local water reliability through repairs and upgrades to aging systems, reducing water loss, boil notices, and service disruptions. It would strengthen disaster preparedness through the funding of flood mitigation projects that increase community resilience to extreme weather. It would also mean there would be support for long-term water supply solutions to help communities meet growing demand and address water shortages.
If Prop 4 Passes, What Comes Next?
With a new and historic investment in Texas' water future, the next phase of work is to ensure that these funds are used responsibly and in ways that serve the needs of Texas communities.
The Sierra Club is committed to staying engaged long after the vote. We’ll continue working closely with key agencies like TWDB, which is in charge of this funding, and TCEQ, which regulates permits for new water supply projects like seawater desalination, reuse of produced water, and develops surface water quality standards. As a member of the Texas Produced Water Consortium, we’ll remain engaged in those discussions by providing a stakeholder perspective on the risks and realities of produced water reuse. We will also be encouraging participation in the public meetings related to the 2027 State Water Plan, and 2029 Texas Flood Plan. Public meetings related to the state flood plan can be found here - while public meetings related to the Texas Flood Plan can be found here.
We’ll also stay active at the Legislature - as we’ve always been - educating lawmakers and ensuring that community voices are included in water decisions. And just as importantly, we’ll keep working with everyday Texans: sharing information, building awareness, and mobilizing support for a water future that’s sustainable and equitable.
Register for the next Water for People & the Environment Committee meeting to get involved, or sign up for water email updates below!