Become part of the movement for unbiased, accessible election information. Donate today.
Texas Proposition 4, Allocate Portion of Sales Tax Revenue to Water Fund Amendment (2025)
| Texas Proposition 4 | |
|---|---|
|
|
|
| Election date |
|
| Topic Restricted-use funds and Sales taxes |
|
| Status On the ballot |
|
| Type Legislatively referred constitutional amendment |
Origin |
Texas Proposition 4, the Allocate Portion of Sales Tax Revenue to Water Fund Amendment, is on the ballot in Texas as a legislatively referred constitutional amendment on November 4, 2025.[1][2]
A "yes" vote supports amending the state constitution to authorize the state legislature to allocate the first $1 billion per fiscal year of sales tax revenue after it exceeds $46.5 billion to the state water fund and authorize the state legislature, by a two-thirds vote, to adjust the amount allocated. |
A "no" vote opposes amending the state constitution to authorize the state legislature to allocate the first $1 billion per fiscal year of sales tax revenue after it exceeds $46.5 billion to the state water fund and authorize the state legislature, by a two-thirds vote, to adjust the amount allocated. |
Overview
What would Proposition 4 do?
- See also: Text of measure
Proposition 4 would amend the Texas Constitution to authorize the Texas State Legislature to require the comptroller to annually allocate the first $1 billion in net sales tax revenue after revenue exceeds $46.5 billion to the Texas Water Fund. The comptroller's authority to allocate the first $1 billion would expire on August 31, 2047. The allocation would be administered in a separate account in the fund, and the amendment would prohibit the use of the funds unless an appropriation law is passed.[2]
The amendment would also prohibit the state legislature from changing the law that requires the allocation for the first 10 years. If a state of disaster is declared, the allocation may be suspended through either the regular budget process or a concurrent resolution approved by a majority of state legislators.[2]
Proposition 4 would prohibit the transfer of sales tax revenue allocated to the Texas Water Fund to the New Water Supply for Texas Fund for financing groundwater infrastructure projects.[2]
The amendment would take effect on September 1, 2027.[2]
What is the Texas Water Fund?
- See also: Texas Water Fund
The Texas Water Fund (TWF) is a special fund in the state treasury outside of the general fund that was established in the Texas Constitution with the approval of Proposition 6 in 2023 by 77.7% of voters. TWF is administered by the Texas Water Development Board (WDB). The WDB oversees state programs related to the conservation and development of water resources in Texas.
How much does the state collect in sales and tax revenue?
- See also: Sales and use tax revenue, 2014-2024
As of 2025, the state sales and use tax rate in Texas was 6.25%. Local jurisdictions, such as cities, counties, and special districts, can levy additional sales and use tax rates up to 2% for a maximum combined rate of 8.25%. In 2024, the state collected $47.2 billion in revenue from sales tax, accounting for 57.6% of all tax revenue.[3]
Who supports and opposes Proposition 4?
- See also: Support and Opposition
American Council of Engineering Companies of Texas, Texas 2036, Texas Association of Manufacturers, Texas Economic Development Council, Texas Farm Bureau (AGFUND), Texas Oil and Gas Association, Texas Water Association, Texas Water Infrastructure Network (TXWIN), Texas Water Supply Partners, and The Nature Conservancy in Texas endorsed Proposition 4 during the legislative process. Marie Camino with The Nature Conservancy in Texas said, "Texas is growing rapidly, and with increased instances of drought, we are facing a water crisis. HJR 7 is a robust, long-term commitment to funding water infrastructure projects. By dedicating these resources to water supply projects, conservation efforts, and infrastructure improvements, HJR 7 helps protect our water resources while planning for future growth. Notably, this amendment gives the Texas Water Development Board flexibility to distribute funds. This allows Texas to invest in a range of water strategies with room to adapt to changing conditions as needed. This flexible funding will aid both immediate water needs and long-term sustainability."[4][5]
Texas Policy Research opposes Proposition 4, saying, "While addressing water infrastructure is vital, this resolution undermines limited government and fiscal transparency by embedding automatic spending into the Constitution. It crowds out private-sector solutions, reduces future tax relief opportunities, and limits legislative accountability for long-term fiscal commitments."[6]
Text of measure
Ballot title
The ballot title is as follows:[2]
| “ | The constitutional amendment to dedicate a portion of the revenue derived from state sales and use taxes to the Texas water fund and to provide for the allocation and use of that revenue.[7] | ” |
Constitutional changes
- See also: Article 3 and Article 8 of the Texas Constitution
The measure would amend section 49-d-16 of Article 3 and section 7-e of Article 8 of the state constitution. The following underlined text would be added, and struck-through text would be deleted:[2]
Note: Hover over the text and scroll to see the full text.
Article 3
(c) The Texas water fund consists of:
- (1) money transferred or deposited to the credit of the fund under this constitution or by general law, including money appropriated by the legislature directly to the fund and money from any source transferred or deposited to the credit of the fund authorized by this constitution or by general law;
- (2) any other revenue that the legislature by statute dedicates for deposit to the credit of the fund;
- (3) investment earnings and interest earned on amounts credited to the fund;
- (4) money from gifts, grants, or donations to the fund;
and - (5) money returned from any authorized transfer; and
- (6)money in accounts established in the fund under this constitution or by general law.
(e) The legislature by general law or by adoption of a concurrent resolution approved by a record vote of a majority of the members of each house may allocate for transfer to the funds and accounts administered by the Texas Water Development Board or that board’s successor the money deposited to the credit of the Texas water fund under Section 7-e, Article VIII, of this constitution. The allocation of money prescribed by a general law or resolution under this subsection may not be changed by the legislature during the first 10 fiscal years for which the money is allocated by the general law or resolution. Any money deposited to the credit of the Texas water fund under Section 7-e, Article VIII, of this constitution that is not allocated by a general law or resolution under this subsection may be transferred to other funds or accounts by the Texas Water Development Board or that board’s successor in accordance with Subsection (b) of this section.
(e-1) During a state of disaster declared under Chapter 418, Government Code, or its successor, an allocation made under Subsection (e) of this section may be suspended through the budget execution process under Chapter 317, Government Code, or its successor, or by adoption of a concurrent resolution approved by a record vote of a majority of the members of each house. During a suspension of an allocation under this subsection, the money that would have been allocated but for the suspension is subject to appropriation by the legislature for any purpose. It is the intent of the legislature that any money repurposed under this subsection be restored to the Texas water fund when practicable.
(e-2) Of the amount of money initially appropriated to the Texas water fund, the administrator of the fund shall allocate not less than 25 percent to be used only for transfer to the New Water Supply for Texas Fund.
(e-3) This subsection and Subsections (e), (e-1), and (e-2) of this section expire August 31, 2047.
Article 8 Sec. 7-e. (a) Subject to Section 7-d of this article and Subsection (b) of this section, in each state fiscal year, the comptroller of public accounts shall deposit to the credit of the Texas water fund the first $1 billion of the net revenue derived from the imposition of the state sales and use tax on the sale, storage, use, or other consumption in this state of taxable items under Chapter 151, Tax Code, or its successor, that exceeds the first $46.5 billion of that revenue coming into the treasury in that state fiscal year.
(b) The duty of the comptroller of public accounts to make a deposit under this section expires August 31, 2047.
(c) Money deposited to the credit of the Texas water fund under Subsection (a) of this section may not be transferred to the New Water Supply for Texas Fund for the purpose of financing the construction of infrastructure to transport groundwater that was produced from a well in this state and that, at the time of production, was not brackish, as that term is defined by general law. This subsection applies to the construction of infrastructure to transport water produced from a well associated with an aquifer storage and recovery project only if the water injected as part of the project was groundwater described by this subsection.
(d) Notwithstanding Section 49-d-16(b), Article III, of this constitution, as proposed by S.J.R. 75, 88th Legislature, Regular Session, 2023, the revenue deposited to the credit of the Texas water fund under Subsection (a) of this section shall be maintained by the administrator of the fund in a separate account in the fund and may not be transferred from the fund by the administrator except as directed by the legislature pursuant to an appropriation made in accordance with Section 6 of this article. The administrator of the fund shall transfer the amount appropriated by the legislature from the account in accordance with the applicable allocations specified by Section 49-d-16, Article III, of this constitution, as proposed by S.J.R. 75, 88th Legislature, Regular Session, 2023.
TEMPORARY PROVISION. (a) This temporary provision applies to the constitutional amendment proposed by the 89th Legislature, Regular Session, 2025, to dedicate a portion of the revenue derived from state sales and use taxes to the Texas water fund and to provide for the allocation and use of that revenue.
(b) Section 7-e, Article VIII, of this constitution takes effect September 1, 2027.
(c) This temporary provision expires September 1, 2028.[7]
Full text
The full text is available here.
Support
Ballotpedia has not located a campaign in support of the ballot measure. You can share campaign information or arguments, along with source links for this information, with us at editor@ballotpedia.org.
Supporters
Organizations
- American Council of Engineering Companies of Texas
- Brazos River Authority
- Lower Colorado River Authority
- National Wildlife Federation
- Plastics Pipe Institute, Inc.
- Texas 2036
- Texas Association of Manufacturers
- Texas Economic Development Council
- Texas Farm Bureau (AGFUND)
- Texas Oil and Gas Association
- Texas Realtors
- Texas Water Association
- Texas Water Infrastructure Network (TXWIN)
- Texas Water Supply Partners
- The Nature Conservancy in Texas
Arguments
Opposition
Ballotpedia has not located a campaign in opposition to the ballot measure. You can share campaign information or arguments, along with source links for this information, with us at editor@ballotpedia.org.
Opponents
Organizations
Arguments
Campaign finance
Ballotpedia has not identified any committees registered to support or oppose Proposition 4. If you are aware of a committee registered to support or oppose this amendment, please email editor@ballotpedia.org.
| Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures | |
|---|---|---|---|---|---|
| Support | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Oppose | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Total | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Polls
| Poll | Dates | Sample size | Margin of error | Support | Oppose | Undecided |
|---|---|---|---|---|---|---|
Texas 2036 Question"Last year, voters approved the creation of the Texas Water Fund to develop new water supplies and address aging infrastructure such as water pipes, with $1 billion invested in that fund. Do you favor or oppose the Texas Legislature dedicating an additional $1 billion per year to this fund over upcoming decades to meet our growing water needs?" | – | 802 LV | ± 3.50% | 68.0% | 15.0% | 16.0% |
| Note: LV is likely voters, RV is registered voters, and EV is eligible voters. | ||||||
Background
Texas Water Fund
The Texas Water Fund (TWF) is a special fund in the state treasury outside of the general fund that was established in the Texas Constitution with the approval of Proposition 6 in 2023 by 77.7% of voters. Money in the fund can only be transferred to the Water Assistance Fund, the New Supply Fund, the Water Implementation Fund, the State Water Implementation Revenue Fund for Texas, the Financial Assistance for Water Pollution Control, Rural Water Assistance Fund, the state Water Account, the Financial Assistance Account, and the state Participation Account. Distributions to water infrastructure projects will prioritize projects in rural political subdivisions or municipalities with a population of less than 150,000.
TWF is administered by the Texas Water Development Board (WDB). The fund received a one-time appropriation of $1 billion in 2023 through the supplemental appropriations bill (Senate Bill 30) and an additional $2.5 billion from the latest supplemental budget passed during the 2025 regular legislative session (House Bill 500). The WDB was created in 1957 with the passage of Proposition 2. It was approved by 74.0% of voters. WDB is a three-member board, with the governor appointing each member. The WDB oversees state programs related to the conservation and development of water resources in Texas.[8][9]
Senate Bill 7 (2025)
The Texas State Legislature passed the implementing legislation, Senate Bill 7 (SB 7), during the 2025 regular legislative session that would take effect on September 1, 2027, if Proposition 4 is approved. Among other provisions, SB 7 would authorize the Texas Water Development Board (WDB) to transfer funds from the Texas Water Fund (TWF) to the flood infrastructure fund, the Texas Water Development Fund II Economically Distressed Areas Program Account, and the agricultural water conservation fund. SB 7 would include wastewater infrastructure projects and rehabilitation or replacement of deteriorating infrastructure amongst the projects for which money from the TWF can be used, with project priorization based on risk or need for rural political subdivisions or municipalities with populations of less than 150,000.[10]
Currently, the WDB is authorized to pay the administrative costs of the TWF directly from the fund, not to exceed 2% of the total fund amount. SB 7 would change this by authorizing the WDB to transfer money each fiscal year, not to exceed 2%, from the TWF to the newly established Texas Water Fund Administrative Fund to reimburse the WDB for the administrative costs of the fund.[10]
SB 7 was passed in the state Senate by a vote of 31-0, and in the state House by a vote of 136-0, with 14 absent or not voting.[11]
2022 Texas State Water Plan
The latest state water plan, published by the Texas Water Development Board, was released in 2022. The plan shows projected water demand, existing water supplies, potential shortages, water management strategies, and recommended capital projects. To view the full plan, click here. The graphs below show the totals by decade from 2020 to 2070.[12]
Sales and use tax revenue, 2014-2024
As of 2025, the state sales and use tax rate in Texas was 6.25%. Local jurisdictions, such as cities, counties, and special districts, can levy additional sales and use tax rates up to 2% for a maximum combined rate of 8.25%. In 2024, the state collected $47.2 billion in revenue from sales tax, accounting for 57.6% of all tax revenue. The table below shows the sales tax revenue from 2014 to 2024.[3]
| Year | Revenue all funds | Percent change | Percent of taxes |
|---|---|---|---|
| 2014 | $27,363,711,000 | +5.6% | 53.59% |
| 2015 | $28,883,117,000 | +5.6% | 55.82% |
| 2016 | $28,221,989,000 | -2.3% | 58.13% |
| 2017 | $28,875,108,000 | +2.3% | 58.07% |
| 2018 | $31,905,371,000 | +10.5% | 57.32% |
| 2019 | $33,960,761,000 | +6.5% | 57.16% |
| 2020 | $34,042,424,000 | +0.2% | 59.28% |
| 2021 | $35,927,959,000 | +5.6% | 58.40% |
| 2022 | $42,991,602,000 | +19.4% | 55.50% |
| 2023 | $46,634,424,000 | +8.6% | 56.63% |
| 2024 | $47,244,911,000 | +1.3% | 57.55% |
Path to the ballot
Amending the Texas Constitution
- See also: Amending the Texas Constitution
A two-thirds (66.67%) vote is required during one legislative session for the Texas State Legislature to place a constitutional amendment on the ballot. That amounts to a minimum of 100 votes in the Texas House of Representatives and 21 votes in the Texas State Senate, assuming no vacancies. Amendments do not require the governor's signature to be referred to the ballot.
House Joint Resolution 7 (2025)
The following is the timeline of the constitutional amendment in the state legislature:
- March 6, 2025: Home Joint Resolution 7 (HJR 7) was introduced.[1]
- April 29, 2025: The House passed HJR 7 by a 138-6 vote.[1]
- May 27, 2025: The Senate passed an amended version of HJR by a vote of 31-0.
- May 29, 2025: The House concurred with the Senate amended version by a vote of 122-12, with 16 not voting or absent.
Learn more about the ballot measures PDI →
| Votes Required to Pass: 21 | |||
| Yes | No | NV | |
|---|---|---|---|
| Total | 31 | 0 | 0 |
| Total % | 100.0% | 0.0% | 0.0% |
| Democratic (D) | 11 | 0 | 0 |
| Republican (R) | 20 | 0 | 0 |
| Votes Required to Pass: 100 | |||
| Yes | No | NV | |
|---|---|---|---|
| Total | 122 | 12 | 16 |
| Total % | 81.3% | 8.0% | 10.7% |
| Democratic (D) | 52 | 0 | 10 |
| Republican (R) | 70 | 12 | 6 |
How to cast a vote
- See also: Voting in Texas
See below to learn more about current voter registration rules, identification requirements, and poll times in Texas.
See also
View other measures certified for the 2025 ballot across the U.S. and in Texas.
Explore Texas's ballot measure history, including constitutional amendments.
Understand how measures are placed on the ballot and the rules that apply.
External links
Footnotes
- ↑ 1.0 1.1 1.2 Texas State Legislature, "HJR 7," April 29, 2025
- ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 Texas State Legislature, "HJR 7 text," accessed April 29, 2025
- ↑ 3.0 3.1 Texas Comptroller, "Sources of Revene," accessed July 21, 2025
- ↑ Texas State Legislature, HJR 7 public comments," accessed July 23, 2025
- ↑ Texas State Legislature, "HJR 7 witness list," accessed July 23, 2025
- ↑ Texas Policy Research, "Texas 2025 constitutional amendments explained," accessed July 23, 2025
- ↑ 7.0 7.1 7.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid
<ref>tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid<ref>tag; name "quotedisclaimer" defined multiple times with different content - ↑ Texas State Legislature, "SJR 75 Text," accessed April 3, 2023
- ↑ Texas Water Development Board, "About," accessed June 24, 2019
- ↑ 10.0 10.1 Texas State Legislature, "Senate Bill 7 text," accessed July 22, 2205
- ↑ Texas State Legislature, "Senate Bill 7 history," accessed July 22, 2205
- ↑ Texas Water Development Board, "2022 Texas State Water Plan," accessed July 23, 2025
- ↑ VoteTexas.gov, "Who, What, Where, When, How," accessed February 27, 2023
- ↑ Texas Secretary of State, “Request for Voter Registration Applications,” accessed February 27, 2023
- ↑ Texas Secretary of State, “Voter Registration,” accessed February 27, 2023
- ↑ 16.0 16.1 16.2 NCSL, "State Profiles: Elections," accessed July 28, 2024
- ↑ Texas Secretary of State, "Request for Voter Registration Applications," accessed July 28, 2024
- ↑ Texas Constitution and Statutes, “Election Code,” accessed February 23, 2023
- ↑ The Texas Tribune, “Texas officials flag tens of thousands of voters for citizenship checks,” January 25, 2019
- ↑ The New York Times, “Federal Judge Halts ‘Ham-Handed’ Texas Voter Purge,” February 28, 2019
- ↑ The New York Times, “Texas Ends Review That Questioned Citizenship of Almost 100,000 Voters,” April 26, 2019
- ↑ Texas Secretary of State, “Secretary Whitley Announces Settlement In Litigation On Voter Registration List Maintenance Activity,” April 26, 2019
- ↑ Under federal law, the national mail voter registration application (a version of which is in use in all states with voter registration systems) requires applicants to indicate that they are U.S. citizens in order to complete an application to vote in state or federal elections, but does not require voters to provide documentary proof of citizenship. According to the U.S. Department of Justice, the application "may require only the minimum amount of information necessary to prevent duplicate voter registrations and permit State officials both to determine the eligibility of the applicant to vote and to administer the voting process."
- ↑ 24.0 24.1 24.2 24.3 24.4 Texas Secretary of State, "Required Identification for Voting in Person," accessed February 27, 2023 Cite error: Invalid
<ref>tag; name "tvid" defined multiple times with different content
