Rural Texas is set to benefit significantly from a new funding initiative aimed at improving water resources and infrastructure. The Texas Water Development Board (TWDB) has earmarked $195 million from the recently approved SB 28, which allocates a total of $28 billion, for the Rural Water Assistance Fund (RWAF). This fund is designed to assist small rural utilities that often struggle with limited customer bases and financial resources.

The RWAF will provide a mix of grants and low-interest loans to qualifying rural utilities, with the smallest utilities eligible for 100% grants. This financial support is crucial for these utilities to invest in new water rights, upgrade aging infrastructure, and ensure the delivery of safe and reliable water services while maintaining affordable rates for residents.

In addition to financial assistance, the TWDB is offering technical support to help utilities navigate the application process for these grants and loans, a program funded by the legislature in the previous session. However, despite these efforts, the funding falls short of the actual needs. The TWDB has identified 54 projects from the 2025 state revolving fund list that are eligible for RWAF funding, but only 38 of these can be funded with the current allocation, leaving a significant unmet need of $149 million.

This gap highlights the ongoing challenges in securing adequate water supply across Texas, as the demand for improvements continues to outpace available resources. A recent survey conducted by the TWDB among water utilities statewide underscores the urgency of addressing these infrastructure needs to ensure the sustainability of water services in rural areas.