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Bill

HJR 126

Proposing a constitutional amendment dedicating certain general revenue that would otherwise be transferred to the economic stabilization fund to the Texas water fund.

89th Legislature (2025) Introduced by Donna Howard

Redirect general revenue from Texas's rainy-day fund to create permanent constitutional water infrastructure funding, reducing emergency financial reserves.

Referred to Appropriations
#comptrollerofpublicaccounts(v2608) #resolutions--constitutionalamendments(i0661) #statefinances--management&control(i0748) #water--general(i0885)
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Bill Summary · HJR 126

Legislative bill overview

HJR 126 proposes a constitutional amendment that would redirect a portion of general revenue funds—money that would normally go to Texas's rainy-day fund (economic stabilization fund)—into a dedicated Texas water fund instead. This requires voter approval through a constitutional amendment process.

Why is this important

Water infrastructure and management are critical challenges for Texas, especially given population growth, drought concerns, and aging water systems. Dedicating sustainable funding through constitutional amendment would create a permanent revenue stream for water projects, but it also reduces the state's financial cushion for economic emergencies.

Potential points of contention

  • Trade-off between water needs and fiscal reserves: Diverting money from the economic stabilization fund reduces the state's emergency financial buffer during recessions or crises, potentially limiting flexibility during downturns
  • Funding mechanism clarity: The bill doesn't specify exact amounts or percentages being redirected, leaving uncertainty about the actual water fund size and impact on the stabilization fund
  • Alternative funding priorities: Some may argue general revenue should address other pressing needs (education, healthcare, transportation) or that water funding should come from user fees, bonds, or other dedicated sources rather than general revenue

Compiled from official sources — confirm details with the bill’s official record.

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