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Program accepts applications on August 1 and February 1 each year, matching the stored deadline of 2026-08-01. However, the program currently has no available funding until appropriations are received from the Legislature.
"State Participation Program" is currently closed and not accepting applications.
State Participation Program is sponsored by Texas Water Development Board. Provides financial assistance to Texas political subdivisions to help them build essential regional water, wastewater, or flood control infrastructure.
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What can the program do for you? The State Participation Program enables the TWDB to provide funding and assume a temporary ownership interest in a regional water, wastewater, or flood control project when the local sponsors are unable to assume debt for an optimally sized facility.
The program is intended to encourage the optimum regional development of projects by funding excess capacity for future use where the benefits can be documented, and where such development is unaffordable without state participation. The goal is to allow for the "right sizing" of projects in consideration of future needs.
Any political subdivision of the state, including a water supply corporation, that can sponsor construction of a regional water or wastewater project may apply to the TWDB for State Participation funding. A project sponsor must meet several requirements in order to be eligible to receive State Participation assistance (See Special Requirements below). 3.
What types of projects can I use the loan funding for? For new water supply and state water plan projects the TWDB can fund as much as 80% of project costs, provided that the local sponsor finances at least 20% of the total project cost from sources other than the State Participation Account and that at least 20% of the total capacity of the proposed project serves existing needs.
On other State Participation projects, the TWDB can fund as much as 50% of costs, provided that the local sponsor finances at least 50% of the total project cost from sources other than the State Participation Account and that at least 50% of the total capacity of the proposed project serves existing needs. In both cases, State Participation funding is limited to the portion of the project designated as excess capacity. 4.
Are loans and grants offered? The TWDB may acquire ownership interest in the water rights or a co-ownership interest of the property and treatment works. The loan repayments that would have been required, if the assistance had been from a loan, are deferred.
Ultimately, however, the cost of the funding is repaid to the TWDB based upon purchase payments, which allows the TWDB to recover its principal and interest costs and issuance expenses. Although it is not required, the local sponsor usually acquires a loan from the TWDB for the local sponsor's portion of the project funding. Current interest rates are available.
5. What project components can I receive funding to complete? The program is intended to allow for optimization of regional projects through limited State Participation where the benefits can be documented, and where such development is unaffordable without the program�s assistance.
The goal is to allow for the "right sizing" of projects in consideration of future growth. 6. How much funding is available?
State Participation funds are limited in availability both as to the total amount approved by the Legislature each biennium and by limitations to participation in individual projects. Currently, the State Participation program has no available funding until appropriations are received from the Legislature.
The TWDB's participation from this program is limited to a maximum of 80% of costs for projects creating a new water supply, and to 50% of costs for other types of projects. In both cases state participation is limited to the portion of the project designated as excess capacity. The remaining costs of the project may be funded through other TWDB programs.
At least 20% of the total capacity of the proposed project must serve existing needs. The applicant is encouraged to meet with their Regional Project Implementation Team for assistance in preparing the application and to discuss the terms of the funding and project eligibility. Abridged or complete applications are due August 1 and February 1 of each year.
The TWDB will prioritize projects for the available funds in September and March of each year utilizing the criteria in the TWDB Rules at 31 Texas Administrative Code § 363. 1007 . If a project is prioritized above the funding line, applicants must submit a complete application within 30 days of the Board-approved prioritization.
8. What are the Conditions of Financial Assistance? For detailed information of the Conditions of Financial Assistance .
A project sponsor must meet several requirements including: Administrative cost recovery fee of 0. 77%. A requirement that the project cannot be reasonably financed without State Participation assistance.
The facility to be constructed contemplates the optimal regional development of the project and cannot be reasonably financed without state participation. For water supply projects, the project must be in an approved State Water Plan or Regional Water Plan. Reservoir funding must be segmented or phased; permitting is required prior to a construction commitment.
Water Use Survey response for the previous three years must be on file for the applicant (31 TAC �358. 5) . Applicants that are wholesalers only are exempt from this requirement.
Your survey response status is available here . To complete missing water use surveys, please visit the Water Use Survey webpage. Entities receiving assistance greater than $500,000 must adopt a water conservation and drought contingency plan.
Review of legislative requirements regarding water loss threshold limits. Where Can I Get More Information? In order to provide you with a single point of contact at the Texas Water Development Board (TWDB), our project implementation staff is organized into six regional project implementation teams.
Each team is led by a manager that serves as the primary point of contact for both our existing and future customers. For assistance with the application or any questions related to your project, please contact your Regional Project Implementation Team .
Upcoming Financial Assistance Workshops Agriculture Water Conservation Grants Agriculture Water Conservation Loans Asset Management Program for Small Systems Clean Water State Revolving Fund Drinking Water State Revolving Fund Lead Service Line Replacement (LSLR) Program Emerging Contaminants (EC) Programs Economically Distressed Areas Program FEMA Flood Mitigation Assistance Flood Infrastructure Fund (FIF) Rural Water Assistance Fund State Participation Program United States Iron and Steel State Water Implementation Fund for Texas (SWIFT) Texas Water Development Fund Water Utilities Technical Assistance Program Water Supply and Infrastructure Grants Total Funding Commitments Financial Assistance Projects - Interactive Dashboard (Map & Details) TWDB Agency Financial Assistance Metrics Financial Assistance Application Program Guidance & Manuals Closing a TWDB Commitment United States Iron and Steel Build America, Buy America (BABA) Notice of Nondiscrimination and Reasonable Accommodation Flood Information Clearinghouse Water Loss Audit (WLA) Worksheet Water Conservation Annual Report Form Flood Mitigation Planning Drought Information & Response Other Government Resources Texas Water Development Board 1700 North Congress Avenue, Austin, TX 78701 TEL: 512-463-7847 / FAX: 512-475-2053
According to the current listing, eligibility includes: State governments and political subdivisions. Confirm the full requirements in the official notice before applying.
The published deadline was August 1, 2026, which has passed. Check the official notice for any future application windows before investing time in a proposal.
State Participation Program is funded by Texas Water Development Board. Verify program details on the funder's official page before applying.
This opportunity targets applicants in Texas. If your organization operates elsewhere, check the official notice for location requirements.
Applications go through the funder's official portal — the Apply Now link on this page goes there directly.
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