New state funding and HB500 could deliver one‑time grants to Texas water systems, TWDB says

Jan 28, 2026

The Texas Water Development Board told TCEQ’s Drinking Water Advisory Work Group that voter‑approved Proposition 4 will dedicate $1 billion annually to water projects and that House Bill 500 creates a one‑time 100% grant program for political subdivisions; TWDB urged applicants to prepare audits and reporting ahead of application windows.

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Scott Galloway, an outreach specialist at the Texas Water Development Board, told the Texas Commission on Environmental Quality’s Drinking Water Advisory Work Group on Jan. 13 that Proposition 4 will dedicate $1,000,000,000 a year for 20 years to water‑supply projects and aging infrastructure, split roughly 50/50.

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