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HB 365

Relating to the authority of the Texas Water Development Board to provide financial assistance from the economically distressed areas account that is not required to be repaid.

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

HB 365 allows Texas Water Development Board to award non-repayable grants to economically distressed areas for water infrastructure instead of requiring loan repayment.

Received from the House
#economicallydistressedareas(s0172) #statefinances--management&control(i0748) #utilities--water&sewer(i0002) #waterdevelopmentboard #texas(v2481) #water--development(i0875) #water--general(i0885)
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Bill Summary · HB 365

Legislative bill overview

HB 365 expands the Texas Water Development Board's authority to provide grants (rather than loans) from the Economically Distressed Areas Account to eligible communities. The bill allows financial assistance that does not require repayment, making funds more accessible to economically disadvantaged regions needing water infrastructure improvements.

Why is this important

Water infrastructure is critical for public health, economic development, and quality of life. Many economically distressed areas lack resources to repay loans for necessary water systems, so grant funding can accelerate infrastructure improvements in underserved communities. This addresses barriers that previously forced struggling municipalities to choose between borrowing at potentially unfavorable terms or going without needed improvements.

Potential points of contention

  • Fiscal impact: Converting loans to grants reduces repayment revenue to the state fund, potentially limiting future assistance capacity unless the account is replenished
  • Eligibility criteria: The bill's effectiveness depends on clear definitions of "economically distressed areas" and how funds are prioritized among competing needs
  • Accountability: Grants require robust oversight to ensure funds are used effectively and communities maintain infrastructure long-term without repayment incentives built into loan structures

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

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