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Bill

HB 422

Relating to limitations on the issuance of bonds by the Texas Water Development Board for the development of certain projects in economically distressed areas.

89th Legislature (2025) Introduced by Mary González and 7 co-sponsors

HB 422 restricts Texas Water Development Board bond issuance for water projects in economically distressed areas, potentially limiting infrastructure funding for low-income communities.

Received from the House
#bonds(s6060) #economicallydistressedareas(s0172) #utilities--water&sewer(i0002) #waterdevelopmentboard #texas(v2481) #water--development(i0875) #water--general(i0885)
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Bill Summary · HB 422

Legislative bill overview

HB 422 establishes new restrictions on the Texas Water Development Board's (TWDB) authority to issue bonds for water infrastructure projects in economically distressed areas. The bill limits when and how the TWDB can finance water development in these regions, potentially requiring stricter conditions or alternative funding mechanisms for projects serving low-income communities.

Why is this important

Water infrastructure in economically distressed areas is critical for public health, economic development, and quality of life. This bill directly affects access to funding for water systems in struggling communities, which could either protect taxpayer interests or constrain necessary infrastructure improvements depending on the specific limitations imposed.

Potential points of contention

  • Funding access: Limiting bond issuance may reduce available capital for water projects in poor communities that often lack alternative funding sources, potentially delaying critical infrastructure repairs or expansions
  • Economic impact: Restrictions could disproportionately affect economically disadvantaged regions' ability to attract business investment and population growth that depend on reliable water services
  • State responsibility: Debate over whether the state should prioritize fiscal conservatism or ensure equitable infrastructure investment across regions regardless of economic status

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

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