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.  

Houston’s MacGregor Park has been awarded a $10 million grant from the U.S. Department of the Interior to support the park’s groundbreaking renovation project.  The grant comes from the department’s Outdoor Recreation Legacy Partnership program, which provides funding to enhance parks in economically underserved communities.  The City of Houston Parks and Recreation Department (HPARD) and the Houston Parks Board (HPB) unveiled plans for the $54 million renovation project last year, following a $27 million donation from the Kinder Foundation and years of community feedback. This initiative, which is part of the 65-acre park’s master plan, aims to improve the quality of life for residents in Houston’s Third Ward neighborhood, reinforcing the park’s importance as a community hub.  “MacGregor Park has been an important greenspace in our community, and this investment underscores the City’s commitment to provide high-quality greenspaces to all Houstonians,” said Kenneth Allen, Director of HPARD, in a statement. “The planned renovations will not only preserve the park's rich legacy but also enhance its role as a vital hub for recreation, culture, and community connection.”  The master plan includes major improvements to the park, such as upgrading the Homer Ford Tennis Center with state-of-the-art tournament-hosting capabilities, and renovations to both the swimming pool and community center. The park's trail system will be extended by 1.25 miles, connecting it to the Bayou Greenways trail along Brays Bayou, which is part of a network of over 150 miles of trails throughout the city. Additionally, a new amphitheater will be built near the bayou for events and gatherings, along with an ADA-accessible playground.  The internationally acclaimed Hood Design Studio was selected to lead the project earlier this year. Design work is already underway, with construction set to begin late next year. Creative Director Walter Hood shared that the firm seeks to blend nature into the park’s design, incorporating native plants and other naturistic elements.   “Situating this park within nature is an aspect that many other parks in Houston have benefitted from, but to date, MacGregor has not,” Hood states. “Together, we are committed to creating a revitalized space that enhances MacGregor Park as a beloved community space, that is idiosyncratic, embraces difference, and tells a unique story.”  The $10 million grant brings the project’s public funding total to $24.5 million, bolstered by contributions from the City of Houston, its Tax Improvement Plan, Tax Increment Reinvestment Zone 7 and former U.S. Representative Sheila Jackson Lee. Generous donations have also been made by the Brown Foundation and Texas Children’s Hospital.   Learn more about Houston’s parks and green spaces.