3
Q: What will the Texas Water Fund do for Texas, and why do we need it?
A: The Texas Water Fund will support the TWDB’s mission of leading the state's efforts in
ensuring a secure water future for Texas. According to the 2022 State Water Plan, the
population of Texas is projected to increase 73 percent between 2020 and 2070, from 29.7
million to 51.5 million. The Texas Water Fund will provide funding for loans and grants that help
communities across the state implement water supply and wastewater projects through
existing TWDB programs. It will also support the newly created New Water Supply for Texas
Fund, which is designed to implement innovative water supply strategies such as marine and
brackish water desalination; oil and gas produced water treatment projects; and aquifer
storage and recovery projects.
The Texas Water Fund will help communities implement cost-effective water and wastewater
projects through both new and existing TWDB programs. The costs associated with these types
of projects can often make them difficult for some communities to implement. By providing
low-cost, flexible financing options, the funding will provide the economic opportunity for
communities to overcome cost hurdles.
Q. What can the Texas Water Fund not fund?
A. The Texas Water Fund is not able to transfer funds to the Economically Distressed Areas
Program, the Flood Infrastructure Fund, or the Agricultural Water Conservation Fund.
Q. Is the Texas Water Fund a new financial assistance program?
A. The Texas Water Fund will not be a new program at the TWDB and cannot offer loans and/or
grants directly. Rather, it will enable the TWDB to provide funding through existing financial
assistance programs and the newly created New Water Supply Fund for Texas. Each program
will have administrative rules, guidance documents, and in some cases an “Intended Use Plan”
that will outline how the program will allocate and distribute funds.
Q. Will the Texas Water Fund allow for grants in addition to loans?
A. Money appropriated to the Texas Water Fund will be transferred to allowable program funds
and accounts, as approved by the TWDB’s governing board. Once transferred, all statutory and
rule requirements applicable to each program will apply. Programs that have authorization for
grants (or principal forgiveness) include the Rural Water Assistance Fund, the Clean Water and
Drinking Water State Revolving Funds, and the newly created New Water Supply for Texas
Fund. Some programs, such as the Texas Water Development Fund and SWIFT, do not offer
grants due to statutory or constitutional limitations.
Q: What is the New Water Supply for Texas Fund?
A: The New Water Supply for Texas Fund is a special fund in the state treasury administered by
the TWDB. The fund may be used for the following purposes: