Texas is one step closer to spending billions of dollars to address the state’s groundwater shortages after officials approved a draft blueprint for the next statewide water plan on Thursday.
Under review by the Texas Water Development Board, the plan would allocate $174 billion to 3,000 water supply projects until 2080. The state’s water supplies are projected to decrease by about 10% over the next five decades, according to new analysis reported by the Texas Tribune.
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The $174 billion price is more than double the $80 billion cost the three-member state board projected four years ago.
The state’s latest water plan attributed the higher price tag to various factors, including inflation-driven construction costs and a growing backlog of water supply projects.
“A large part of that increase is simply inflation. It costs a lot more to build any kind of construction project now than it did five years ago,” political economy reporter Megan Kimble told the Texas Standard on Friday.
“There’s a backlog of projects that were approved in the last state water plan that haven’t been built for various reasons,” she said. “And I think importantly, this new state water plant goes out to 2080 and that reflects the fact that, as water gets more and more scarce, it’s simply more expensive to access new sources of water.”
If the state fails to implement the costly plan, the report says the state would suffer up to $91 billion in economic damages by 2030 in the event of a severe drought.
The looming water crisis in Texas has become a growing concern in recent years, as the Lone Star State has dealt with persistent drought conditions, rapid population growth, and aging water infrastructure. These factors are prompting state officials to solve the problem.
Corpus Christi, a coastal city with a population of roughly 317,000 residents, recently gained approval to draw water from one of the city’s three main reservoirs and wells in the county. However, even with the wells, Corpus Christi does not have enough water. City officials will share an update on the plan this coming Tuesday and may declare a water emergency as early as May.
Other South Texas cities, such as Mathis and Beeville, are also drilling wells to avoid a water crisis. North Texans have also been scrambling to find new water sources.
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Their efforts come after the state legislature allocated $20 billion over the next 20 years to help boost water supplies. The water investment was the largest in Texas history. It followed voters’ approval of Proposition 4 in November 2025. Now, experts say the $20 billion amount is likely not enough.
Texans can comment on the $174 billion proposal until the end of May. The Texas Water Development Board must adopt it by January 2027.
