Water Supply and Infrastructure Grants

The Water Supply and Infrastructure Grants program is administered by the Texas Water Development Board, a state agency responsible for financing water-related projects and supporting long-term water planning across Texas. The program was established through House Bill 500 passed during the 89th Texas Legislative Session, which appropriated $1.038 billion in general revenue funding to support water supply and infrastructure improvements. Unlike traditional TWDB financial assistance programs, this initiative operates outside of existing funding structures due to statutory limitations on fund transfers and bond financing, and it is structured as a one-time grant opportunity. The primary purpose of the program is to provide financial assistance for eligible water supply and infrastructure projects that address critical water needs across Texas communities. Funded activities include improvements to water supply systems, upgrades or replacement of aging infrastructure, and reuse efforts such as addressing water loss, resolving regulatory violations, or enhancing system efficiency. The program explicitly excludes wastewater, flood control, drainage, and non-potable reuse projects, as the legislative language restricts funding to water supply and infrastructure uses only. All funding under this program is provided as 100 percent grant assistance, with no requirement for repayment or cost sharing. This structure is due to legal and constitutional constraints that prevent the Texas Water Development Board from leveraging these funds through bond financing or converting them into loan programs. As a result, the funding is distributed directly from the agency’s general revenue fund and does not create a revolving funding pool. The program is intended to support a limited number of high-priority projects, with funding to be fully awarded and obligated by August 31, 2027. Eligibility for the program is limited to governmental entities such as cities, counties, and other public entities that meet constitutional requirements for receiving state grant funding. Private entities, including water supply corporations and investor-owned utilities, are not eligible due to constitutional prohibitions on granting public funds to individuals or private purposes without explicit statutory authorization. Applicants must demonstrate compliance with multiple prerequisites, including up-to-date financial audits, water use surveys, water loss audits, and water conservation plans. Projects must also align with the State Water Plan, and no waivers of these requirements are permitted. The application process requires submission of a full application using WSIG-specific forms and documentation, including the TWDB-0174 application form, environmental and water rights affidavits, and supporting materials detailing project scope and compliance. Traditional TWDB application templates do not apply. Applicants are expected to follow all instructions carefully, as submissions will be used to prioritize projects for funding consideration. Those projects selected for priority will be invited to proceed to subsequent steps in the evaluation process. The application period is open, and submissions are accepted until July 30, 2026 at 11:59 p.m. Central Time. The Texas Water Development Board has also scheduled informational webinars to assist applicants in understanding the submission process and program requirements. Following submission, the agency will review applications based on eligibility, project readiness, and alignment with program priorities. Notifications regarding project prioritization and next steps are expected after the review process is completed. This is a non-recurring, one-time funding opportunity created through a specific legislative appropriation. Once all funds are awarded and disbursed, the program will conclude and no additional funding rounds are anticipated under this authorization. Communities seeking support for water infrastructure projects must apply within the designated timeframe to be considered for this limited funding opportunity.

Ensure all required audits surveys and plans are current and align project with State Water Plan requirements