People are moving to Texas, and businesses are building new facilities. That rapid growth is straining resources, particularly water. According to a new report, Texas must invest $154 billion over the next 50 years in new water supply and infrastructure—critical needs to support the state’s expanding population and booming industries. The report from Texas 2036, a nonpartisan public policy think tank, highlights the urgency of this investment. Without reliable water infrastructure, Texas could face the loss of a million jobs and more than $160 billion in economic impact over the next five decades. The report underscores a stark reality: a comprehensive, sustainable funding strategy for water is necessary to keep Texas economically resilient and competitive. Investment Needs The 2022 Texas Water Plan and US EPA initially estimated that Texas would need $132 billion in water infrastructure investments over the next 50 years. However, Texas 2036 has adjusted this figure for inflation, raising the projected cost to $154 billion. While state and federal programs—such as the State Water Implementation Fund for Texas (SWIFT) and the newly established Texas Water Fund—are expected to provide around $40-45 billion in financial support over the coming decades, a significant long-term funding gap persists.   Click to expand Texas 2036 graphic showing cost estimate for water infrastructure needs Dual Challenges According to the report, Texas faces two challenges. First, the state must develop a broad, diversified water supply portfolio to meet the demands of a rapidly growing population and economy while strengthening resilience to future droughts. The water supply gap poses additional risks to the state’s electricity generation, as low water levels during droughts could limit power from natural gas, nuclear and coal plants. Second, aging and deteriorating drinking water and wastewater systems. Over the past five years, nearly 3,000 boil water notices have been issued annually, leaving communities without reliable water service.  Impact on Industries A severe, prolonged drought would have widespread effects on industries across Texas. Manufacturing, a key driver of the state’s economy, is one example.  The top five manufacturing regions—Dallas-Fort Worth, the Greater Houston area, East Texas (Beaumont, Tyler, Lufkin), Central Texas (College Station, Temple, Waco), and South Central Texas (San Antonio, Victoria)—together account for 82% of the state’s manufacturing GDP and 77% of its manufacturing jobs. According to research from Rice University’s Baker Institute for Public Policy, within the next 20 years, these regions could face nearly $20.8 billion in lost manufacturing GDP and over 116,000 job losses due to water shortages during a drought of record. The potential economic fallout underscores the need for immediate and strategic investments in water infrastructure to safeguard key industries and the communities that rely on them. Advocacy at the Capitol  Water infrastructure is one of the executive priorities for the Greater Houston Partnership for the 89th Texas Legislative Session. These priorities serve as a roadmap for the upcoming session, highlighting key areas of interest for the business community. The Partnership supports increased funding for the Texas Water Fund, preferably establishing a dedicated funding stream to ensure long-term, sustainable investments in the state’s water resources.   Learn more about how the Partnership advances strong policy that fosters long-term growth and upward economic mobility for the region.  

The U.S. Department of Transportation (DOT) awarded Harris County and Houston-Galveston Area Council (H-GAC) more than $10 million to support transportation infrastructure projects that aim to enhance resiliency against climate change.   The announcement is part of the Biden-Harris Administration's broader initiative, the Promoting Resilient Operations for Transformative, Efficient and Cost-saving Transportation (PROTECT) program, established under the Infrastructure Law and Inflation Reduction Act. PROTECT will fund nearly $830 million in grants for 80 projects nationwide.   According to DOT, Harris County will receive more than $9.6 million to develop a master plan evaluating drainage infrastructure capacity of local roadways within the county’s unincorporated areas that are experiencing rapid growth and frequent flooding. Meanwhile, H-GAC is set to receive $1.1 million to create a Resilience Improvement Plan for transportation systems across the eight-county region that are prone to severe weather, natural disasters and flooding.   “Every community in America knows the impacts of climate change and extreme weather, including increasingly frequent heavy rain and flooding events across the country and sea-level rise that is inundating infrastructure in coastal states,” said Shailen Bhatt of the Federal Highway Administration in a statement. “This investment from the Biden-Harris Administration will ensure our infrastructure is built to withstand more frequent and unpredictable extreme weather, which is vitally important for people and businesses that rely on roads and bridges being open to keep our economy moving.”   As a city that has experienced six federally declared flooding disasters since 2015, these projects are critical to Houston’s prosperity. To further advance public policies like PROTECT, the Greater Houston Partnership recently visited Washington, D.C., to advocate for the use of funds from the new Community Development Block Grant Mitigation (CDBG-MIT) program, which would provide billions of dollars for flood mitigation projects in the Houston region.  Additionally, alongside federal, state and local elected officials, the Partnership has actively been working to propel the coastal barrier project, also known as Ike Dike, forward. This crucial infrastructure project, which is on the verge of being authorized by Congress, will help mitigate crippling flooding from catastrophic storm surges and save tens of billions of dollars in disaster recovery funding by protecting vulnerable communities. The barrier will also safeguard the Houston Ship Channel, which serves as an economic engine helping to power the nation.   Learn more about the Partnership’s Public Policy Efforts.