Texans Greenlight $20 Billion Water Infrastructure Investment, New Dementia Research Institute, and Property Tax Cuts

On Tuesday, the Texans approved a substantial $20 billion investment to improve the state's water infrastructure, marking one of the largest water development commitments in Texas's history. Proposition 4 has successfully garnered over 70% support from voters, setting the stage for significant enhancements to outdated water systems and the establishment of new water sources to accommodate the needs of an expanding population.

The Texas Water Development Board (TWDB), which manages the Texas Water Fund, announced that the funds will not be available until fall 2029, following their appropriation by lawmakers in the 2027 legislative session.

“Texas is confronting over $200 billion in wastewater and flood infrastructure requirements over the next 50 years,” said Sarah Kirkle, policy director at the Texas Water Association. "This $20 billion marks a significant initial move."

Data from the TWDB shows that in 2023, the state's water systems generated 1.17 trillion gallons, yet 158 billion gallons—equivalent to 13%—were lost to leaks, resulting in a financial loss of approximately $326 million. Kirkle stated that the new fund aims to help utilities reduce expenses through low-interest financing, thereby relieving the financial burden on local governments and ratepayers.

“Through the implementation of the state's interest rate reduction initiatives and by capitalizing on the state's interest rates, we can observe a decrease in the expenses associated with those projects for the communities and, in the end, for the ratepayers,” she stated.

The initial funding round, amounting to $2 billion every two years, will require legislative consent before the Texas Comptroller allocates funds to the water fund in 2028. Governor Greg Abbott, who identified water infrastructure as a critical focus for the upcoming 2025 session, hailed the measure's approval as a significant achievement for Texas's future.

Election night saw a favorable outcome for various state propositions as well.

Voters have approved Propositions 11 and 13, which expand property tax exemptions for homeowners, seniors, and individuals with disabilities in Texas. Proposition 13 increases the homestead exemptions for school districts from $100,000 to $140,000. Meanwhile, Proposition 11 increases the exemptions for elderly and disabled homeowners from $10,000 to $60,000, allowing qualifying Texans to receive up to $200,000 in total exemptions.

“These measures will deliver essential reductions in school property taxes across Texas for taxpayers,” stated State Sen. Paul Bettencourt, R-Houston, the author of both bills.

Voters have shown their support for Proposition 1, which increases funding for the Texas State Technical College System (TSTC). The initiative enables the system, catering to over 16,000 students across 11 campuses, to enhance training facilities, acquire land, and upgrade equipment to align with workforce needs.

In a significant development, Texans have given the green light to Proposition 14, which sets up the Dementia Prevention Research Institute of Texas (DPRIT). A new agency is set to oversee $3 billion in research grants over the next decade to enhance dementia prevention and treatment efforts.

The initiatives collectively signify a significant commitment to the future of Texas—safeguarding increased resources, enhancing healthcare, improving workforce training, and providing relief to taxpayers.