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Bill

HJR 7

Proposing a constitutional amendment to dedicate a portion of the revenue derived from state sales and use taxes to the Texas water fund and to provide for the allocation and use of that revenue.

89th Legislature (2025) Introduced by Daniel Alders and 48 co-sponsors

Texas proposes constitutional amendment dedicating portion of sales tax revenue to permanent water infrastructure fund, requiring voter approval.

Filed with the Secretary of State
#comptrollerofpublicaccounts(v2608) #resolutions--constitutionalamendments(i0661) #statefinances--management&control(i0748) #taxation--sales(i0800) #water--development(i0875) #water--general(i0885)
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Bill Summary · HJR 7

Legislative bill overview

HJR 7 proposes a constitutional amendment that would dedicate a portion of Texas state sales and use tax revenue to fund a dedicated "Texas water fund." The amendment requires voter approval and would establish a permanent revenue stream specifically for water infrastructure, management, and related projects across the state.

Why is this important

Texas faces chronic water scarcity challenges, particularly in fast-growing regions, and current water infrastructure funding mechanisms are inadequate for projected demand. By constitutionally dedicating tax revenue to water, the state would create a stable, long-term funding mechanism independent of annual legislative budget battles, ensuring resources for drought preparedness, aquifer management, and infrastructure development. However, this also permanently reduces general revenue available for other state priorities like education and healthcare.

Potential points of contention

  • Revenue allocation trade-offs: Dedicating sales tax revenue reduces flexibility for funding other essential services and limits lawmakers' ability to respond to emerging priorities
  • Percentage and fund structure: The specific percentage of sales tax revenue devoted to the water fund is not detailed in this resolution, leaving critical implementation details for later legislative action
  • Regional equity concerns: How funds are distributed between water-wealthy urban areas and rural/agricultural regions facing severe shortages could create political conflict

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

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