Water supply concerns dominated the Texas Senate Committee on Finance meeting on May 7, 2025, as lawmakers grappled with projected shortfalls that threaten both public health and the state's economy. Testimonies highlighted water as a critical issue for industries considering relocation to Texas, with many wells going dry and over-permitting of water sources exacerbating the crisis.

The Texas Community Water Development Board outlined staggering funding needs: approximately $8 billion for water and wastewater treatments, $54.5 billion for flood infrastructure, and a projected $80 billion to meet current water supply plans. However, estimates suggest that this figure could rise to $120 billion by 2027 due to inflation and project delays.

In response, the committee unanimously recommended a constitutionally dedicated revenue stream to support the Texas Water Fund, proposing an initial allocation of $2.5 billion starting in 2028-29. Governor Abbott's recent emergency item included a significant investment, committing $1 billion annually to the fund for 16 years, mirroring previous constitutional terms in transportation funding.

Lawmakers emphasized the importance of a long-term approach, warning against shorter funding windows that could hinder water supply development. With Texas facing a potential shortfall of 6 million acre-feet by 2050, the urgency for a consistent funding strategy is clear. The committee's recommendations aim to ensure that Texas can meet its water needs for decades to come, addressing both immediate challenges and future demands.