Proposition 4 – Texas Water Fund

This post is for educational purposes only and is not intended to advocate for or against the proposition.

What Is Proposition 4 (Texas Water Fund)?

Proposition 4 is a proposed change to the Texas Constitution. It plans to use part of the state’s sales tax revenue for the Texas Water Fund. This change aims to create steady funding for water, wastewater, and flood infrastructure projects in Texas.

Key Details & Provisions

Starting in 2027, the Texas comptroller will put the first $1 billion of state sales tax revenue that goes above $46.5 billion into the Texas Water Fund each year. This money will stay in a separate account and can only be used through a legislative decision. At least 25% of these funds will support the New Water Supply for Texas Fund, which develops new water sources. The funds cannot be used to move fresh groundwater from existing wells as of 2023, and this funding plan will end on August 31, 2047.

Purpose

The goal of this amendment is to provide reliable funding for water infrastructure projects in Texas. It builds on Proposition 6 from 2023, which created the Texas Water Fund without a dedicated sales tax revenue source. It may help close the gap in water infrastructure investment needed for Texas’s growing population and increasing drought risks. It will also give the Texas Water Development Board more steady resources for local projects.