Turning Data into Action: Shaping Texas’ New $1B Water Infrastructure Program
When Texas launched the Water Supply and Infrastructure Grants Implementation Plan—developed from HB 500, which allocated $1 billion to the Texas Water Development Board (TWDB) for water infrastructure and supply projects—it created a one-time opportunity to shape which projects and communities would benefit from this major investment in the state’s pressing water needs. At EPIC, we saw both the promise—and the risks—that funding would miss the communities with the greatest need.
So we did what we do best: we brought the data to inform these policy decisions.
Drawing on insights from our Texas Water System Prioritization Tool (now expanded into the National Drinking Water Explorer) and DWSRF Funding Tracker, we submitted detailed recommendations to help ensure funds reach the communities that need them most—especially small and under-resourced systems that too often struggle to access infrastructure funding.
In response to public comments, the Texas Water Development Board (TWDB) made several key updates to its Implementation Plan for the Water Supply and Infrastructure Grants program—including changes directly recommended by EPIC.
A Step Forward for the Smallest Systems
One of the most important updates in the revised Implementation Memo is the addition of a dedicated funding allocation for systems serving 1,000 people or fewer.
This is a meaningful step forward.
In our comments, we showed how smaller systems—particularly those serving fewer than 10,000 people—would face disproportionate barriers to accessing the new funding, despite serving a significant share of Texans. Using EPIC’s Texas Water System Prioritization Tool, we recommended aligning funding targets with the population served by size tier. While systems serving fewer than 10,000 people account for nearly 22% of Texans served by drinking water systems, the draft Implementation Plan allocated less than 9% of total funds to them.
Our recommendation was reinforced by findings from EPIC’s DWSRF Funding Tracker. Our Funding Tracker analysis for Texas shows that the smallest population category (1-10,000 people) represents 60% of total project demand under the State Fiscal Year 2026 DWSRF Intended Use Plan. Yet the draft Implementation Plan allocated the least funding to this group, despite having the highest demand for water infrastructure funding and serving the second largest share of Texans. Instead, the draft Implementation Plan directed the most funding to the tier serving the fewest Texans and demonstrating the lowest demand for DWSRF assistance.
In response to comments, the TWDB revised the Implementation Plan to provide an additional $42 million for systems serving 1,000 or fewer people. While this does not fully align with our recommendation to more comprehensively rebalance funding toward smaller population tiers, it reflects clear progress - and recognition of the need to better support these communities.
And that recognition matters.
A Big Win: Moving Toward Realistic Project Funding Caps
Another major shift—and one we’re especially excited about—is the adjustment to per-project funding caps.
The draft funding caps were based on median requested funding amounts. (While the draft Implementation Plan stated the average was used, it was clarified in a subsequent webinar that the proposed caps were, in fact, based on median values.) Drawing findings on project costs from our DWSRF Funding Tracker, EPIC determined that the proposed caps were often too low to cover the real cost of water infrastructure projects. To address this, EPIC recommended setting caps based on the 75th percentile of observed project costs—a data-driven benchmark that better reflects actual infrastructure needs while still maintaining fiscal discipline.
The revised Implementation Plan adopted this recommendation.
EPIC was the only organization to advocate for the 75th percentile benchmark, demonstrating how targeted, data-driven analysis can help influence policy decisions. Another commenter reinforced this recommendation, underscoring the value of early engagement to help drive broader alignment among stakeholders.
Why the 75th Percentile Matters
This change isn’t just technical—it has real implications for project delivery.
When funding caps are set too low:
Projects are forced to seek additional funding - often unsuccessfully
Timelines stretch or stall
Smaller or lower-capacity communities are left behind
Aligning caps with the 75th:
Supports fully fundable, buildable projects
Reduces administrative friction and delays
Increases the likelihood that awarded funds translate into real infrastructure improvements
Our recommendation focused primarily on smaller systems. For larger systems, we called for flexibility based on poverty levels, recognizing wide variation in financial capacity even within high-population utilities. Even so, the shift toward higher, more realistic project caps is a meaningful improvement that will help ensure projects can move forward without unnecessary funding gaps.
What This Means Going Forward
These changes show that targeted, data-driven policy engagement can influence real policy decisions. Investments in resources like EPIC’s National Drinking Water Explorer tool and DWSRF Funding Tracker enable rapid, high-impact analysis that strengthens initiatives like Texas’ Water Supply and Infrastructure Grants program. The results here demonstrate what’s possible when strong data is paired with a state agency like the TWDB that is willing to listen and act.
Through our comments and the advocacy of others:
Small systems are positioned to receive more funding
Funding caps are better aligned with real-world project costs
There’s still more work to do—particularly to fully align funding allocations with population served and demonstrated need—but these updates represent important progress.
EPIC will continue tracking implementation, refining our tools, and working with partners to ensure these investments deliver safe, reliable, and affordable drinking water.
