PILLAR: Sustainable
AGENDA DATE: June 10, 2026
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Dallas Water Utilities Department
PRIORITY: Infrastructure
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SUBJECT
Title
Authorize an application to the Texas Water Development Board for the Water Supply and Infrastructure Grant Program, in an amount up to $55,000,000.00, to fund water supply/water infrastructure projects - Financing: No cost consideration to the City
*In alignment with Water and Wastewater Capital Improvement Program.
Body
BACKGROUND
House Bill (HB) 500 from the 89th Texas Legislative Session appropriated $1,038,000,000.00 from the general revenue fund to the Texas Water Development Board (TWDB) for water infrastructure and supply projects and grants as determined by the board. The TWDB’s Water Supply and Infrastructure Grant (WSIG) Program provides financial assistance for essential water infrastructure improvements that enhance system reliability, reduce water loss, and promote long-term water supply resilience. Entities serving a population of over 150,000 may only request construction funding and the project must be ready to proceed with all environmental coordination, required land and easements, design, and permitting completed.
This is a one-time opportunity to receive grant funding to implement water supply or water infrastructure projects. Once this initial appropriation is provided to communities by August 31, 2027, the TWDB will no longer have these grant funds available to provide as financial assistance. TWDB will provide this funding in the form of 100 percent grant because HB 500 does not provide authorization for the TWDB to use the funding to leverage bonds. Projects must be consistent with the 2027 State Water Plan and 2026 Regional Water Plans and only one application per entity is allowed. For entities serving a population greater than 1 million like the City of Dallas, the Funding Cap is $55 Million. Drainage, flood control, and wastewater projects are not eligible.
Applications for this grant opportunity are due to the TWDB on July 30, 2026. The TWDB plans to make funding commitment decisions in Fall 2026 and funds will be disbursed to applicants through an entity-established escrow account. All commitments, grant agreements, and closings should be completed by May 1, 2027. Entities must submit, with their financial assistance application, a resolution from their governing body requesting financial assistance.
The Dallas Water Utilities Department seeks to apply for WSIG funding for water infrastructure improvements. Multiple improvement contracts may be submitted under the same application to maximize the funding opportunity in alignment with the funding cap. This will include improvement projects to address water main and service repairs and replacements as well as fire hydrant replacements in areas with documented leaks, breaks, pressure issues, and critical fire protection needs. These improvements will reduce water loss, service disruptions, enhance operational efficiency, and support adequate fire flow for public safety. Additional water infrastructure improvements are being evaluated and will be considered for inclusion in the submitted application based on program criteria.
Approval of this item will authorize staff to prepare and submit the application. If a funding commitment is received, a future council item will be brought forward to accept the grant and execute the grant agreement and all associated documents required for implementation.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
This item has no prior action.
FISCAL INFORMATION
No cost consideration to the City.