AEM Blog

Funding the Future of Flood Preparedness in Texas

Written by Brad Harbaugh | Nov 10, 2025 4:00:00 PM

In July 2025, a series of catastrophic floods swept across the Texas Hill Country and beyond, claiming more than 130 lives and testing emergency systems statewide. It was one of the most severe weather events in recent memory — and a turning point for how Texas approaches flood preparedness.

In the months since, state leaders and agencies have taken clear, coordinated steps to strengthen readiness. New funding, legislation, and partnerships are giving local governments the resources they need to strengthen Texas’s flood warning systems—anticipating hazards, protecting residents, and recovering more quickly.

This blog serves as a practical guide through this new landscape. It outlines how communities can leverage recent changes to state and federal policies, funding streams, and technology investments to move from short-term recovery to long-term readiness. 

Specifically, we'll examine:

A pivotal summer and a forward-looking response

The 2025 floods spurred one of the most active periods of disaster-preparedness policymaking in Texas history. In their aftermath, lawmakers advanced a special-session package of bills designed to strengthen safety standards, improve Texas flood warning systems, and provide stable funding for local mitigation.

Signed in early September, the new laws include The Heaven’s 27 Camp Safety Act (SB 1) and a statewide program to help local governments install outdoor flood warning sirens (SB 3), and supplemental appropriations for disaster recovery and preparedness (SB 5).

  • Senate Bill 1 (Heaven’s 27 Camp Safety Act)
    Establishes safety requirements for youth camps, including siting restrictions for flood-prone areas and requirements for emergency planning and alerting. The Department of State Health Services (DSHS) has issued implementation guidance and timelines following passage
  • Senate Bill 3 (Outdoor Flood Warning Systems)
    Creates a state grant program — under the Office of the Governor and administered with the Texas Water Development Board (TWDB) — to help local jurisdictions fund, install, and maintain outdoor sirens in high-risk areas.
  • Senate Bill 5 (Disaster Appropriations Act)
    Provides nearly $300 million in supplemental funding for disaster preparedness and recovery, including $200 million to match federal funds, $50 million for warning infrastructure, and $28 million to enhance statewide forecasting capabilities.

Complementing these legislative actions, Governor Abbott issued a disaster proclamation at the time of the floods on July 4, 2025, which was amended and renewed later in July. The proclamation was intended to help dozens of flood-affected counties by performing several critical functions:

We’re going to address every aspect of this storm to make sure we have in place the systems that are needed to prevent deadly flooding events like this in the future.

Governor Greg Abbott, Texas

  • Activate state resources
    Authorizes agencies such as the Texas Department of Emergency Management (TDEM) to deploy personnel, equipment, and funding to affected areas.
  • Expedite action
    Allows for temporary suspension of state regulations that might otherwise slow emergency or mitigation projects.
  • Designate eligibility
    Makes named counties eligible for specific state support programs and coordination with FEMA for federal aid.
  • Align recovery and preparedness
    Maintains an active disaster status to keep channels open for both short-term response and long-term funding.

In short, the proclamation forms the administrative bridge between legislative intent and local implementation — ensuring that the resources unlocked by new laws can move where they’re needed most.

In October 2025, the proclamation was expanded to include additional counties across Central and West Texas. By widening its scope, the order ensured that communities experiencing delayed impacts or infrastructure stress from the summer floods could also access state resources and participate in ongoing preparedness initiatives.

The funding landscape: How resources are flowing

With legislative authority and the proclamation framework in place, funding for flood preparedness in Texas now operates through a coordinated system that links state and federal resources. Understanding how these layers connect helps communities identify which programs best fit their needs.

  • At the state level, most funding flows through the Texas Water Development Board (TWDB) — the agency responsible for financing and administering water and flood projects statewide. TWDB draws on two major funds that work together to sustain long-term mitigation efforts:
  • The Texas Water Fund (TWF), created by voters in 2023, serves as the state’s cash reservoir for water and flood initiatives. It provides stable, ongoing capital that TWDB can allocate to its programs. In October 2025, Texas voters passed Proposition 4, which commits the state to transferring up to $1 billion annually in sales tax revenue to the TWF to support water and flood initiatives. 
  • The Flood Infrastructure Fund (FIF), established in 2019, is one of the programs supported by TWF. Through FIF, TWDB delivers grants and loans directly to local governments to plan and build flood-mitigation projects.
Put simply, TWF supplies the capital, and TWDB channels that capital through the FIF program to fund community-level resilience projects. In turn, FIF supports:
  • Flood-risk studies, modeling, and mapping
  • Drainage, detention, and channel improvements
  • Nature-based solutions and floodplain restoration
  • Integrated warning and evacuation improvements

This framework ensures that Texas can sustain funding for both immediate projects and long-term infrastructure planning. For FY 2024–2025, TWDB anticipates using at least $375 million through FIF for community projects, alongside $624 million in additional appropriations to sustain and expand the program.

CLARIFYING THE ROLE OF NEW STATE BILLS

While the Flood Infrastructure Fund (FIF) and Texas Water Fund (TWF) remain the state’s primary engines for flood-mitigation financing, three 2025 laws broaden that foundation.

  • Senate Bill 1 strengthens compliance and safety expectations for local governments and regulated facilities. By requiring flood-safe siting, emergency planning, and coordination with local emergency management, the law effectively raises the baseline for preparedness that communities must demonstrate. Those that integrate these standards into their planning processes may find themselves better aligned with future funding opportunities under larger programs like FIF.
  • Senate Bill 3 adds a complementary but distinct layer to that structure. The law establishes a grant program for outdoor flood warning sirens, administered through the Office of the Governor with coordination from TWDB to identify eligible areas. In practice, SB 3 operates alongside the existing funding streams, giving local jurisdictions new flexibility to pursue targeted safety improvements such as siren networks.
  • Senate Bill 5 expands the state’s financial capacity. It provides nearly $300 million in supplemental appropriations — including funds for federal matching, weather infrastructure, and statewide forecasting upgrades. By bolstering Texas’s ability to co-fund major projects and sustain planning work between federal grant cycles, SB 5 ensures that local governments can maintain progress even when federal reimbursements are delayed. 

THE COMPLEMENTARY ROLE OF FEDERAL FUNDING

Federal programs remain a vital part of Texas’s flood-mitigation framework, supporting large projects and long-term resilience. State funding programs such as FIF and TWF add speed and flexibility, helping local governments begin planning and smaller improvements while pursuing larger federal grants. Key programs include:

  • FEMA’s Building Resilient Infrastructure and Communities (BRIC) program, which funds large mitigation projects such as flood-control channels, levees, and drainage system upgrades.
  • FEMA’s Hazard Mitigation Grant Program (HMGP), which helps communities reduce future losses after major disasters through buyouts, elevation, and retrofitting.
  • The U.S. Army Corps of Engineers Flood Risk Management Program, which supports major engineering studies and multi-jurisdictional projects.
  • NOAA’s Climate-Ready Coasts and Flood Warning System grants, which fund forecasting improvements and coastal data systems.

Texas agencies such as the TWDB and the TDEM help local governments coordinate these opportunities, often by combining federal and state funds for maximum impact. In many cases, TWDB planning grants under the Flood Infrastructure Fund (FIF) can serve as a non-federal match for FEMA mitigation funding, giving communities a way to move complex projects forward faster. By engaging both state and federal programs in tandem, communities can keep preparedness work moving even as longer-term recovery continues.

From law to local action: How communities can advance projects

Texas’s new state-level funding for flood preparedness builds on and complements existing federal programs. Together, they create a coordinated framework where state funds can jump-start local planning and construction or help meet matching requirements for larger federally supported projects. Together, they form a coordinated system that can support continuous progress in communities statewide.

With the policy foundation in place, local governments can now translate these statewide opportunities into tangible improvements. The most successful applicants tend to follow a consistent path:

  1. Clarify risk
    Up-to-date flood studies and mapping improve eligibility and project design.
  2. Pursue near-term safety gains
    SB 3 grants for sirens offer fast, visible progress.
  3. Leverage SB 5 appropriations
    SB 5 appropriations can help to meet federal matching requirements, keep projects on schedule, or maintain momentum between federal grant cycles.
  4. Pay special attention to recreation corridors, parks, low-water crossings, and camp clusters
    Public warning coverage should integrate sirens with signage, evacuation routes, and multi-channel messaging (e.g., WEA, NOAA Weather Radio, opt-in alerts).
  5. Bundle projects
    Coordinating drainage, detention, and channel work maximizes cost-effectiveness.
  6. Plan for operations and maintenance
    Building O&M capacity from the start strengthens project durability.
  7. Integrate land-use policy
    Measures like setbacks and floodway restrictions align with the new state standards for youth camps.
  8. Use state coordination
    TWDB, TDEM, and the General Land Office help applicants identify the right funding sources.

Technology and data: Key areas for local investment

Of course, decisions about where to invest are just as important as securing the funds themselves. Two essential areas are technology and data — the backbones of modern flood warning systems that turn information into action.

Strong technology investments can reduce risk, improve emergency response, and help local leaders make faster, more confident decisions. Whether funded through programs like FIF or supported by SB 3 grants and SB 5 appropriations, these systems build long-term capacity that continues to deliver value long after construction projects are complete.

Key investments include:

  1. Expanded monitoring networks
    Local rainfall and stream-stage sensors improve situational awareness and extend warning lead time.
  2. Integrated decision support
    Dashboards that combine real-time data and forecasts help emergency managers and public works teams act decisively.
  3. Layered public alerting
    Outdoor sirens funded under SB 3 complement Wireless Emergency Alerts and NOAA Weather Radio, ensuring that messages reach residents even when mobile service fails.

A shared investment in resilience

Texas’s recent floods made clear that preparedness isn’t one program, one law, or one funding cycle — it’s a continuing commitment. What’s emerging now is a stronger, more connected system: state and federal funding aligned, local governments empowered to act, and technology woven into every layer of readiness.

Each new project — whether a siren network, a data dashboard, or a drainage upgrade — builds both safety and confidence. But the real progress comes from how these efforts fit together. Communities that invest strategically, share information, and plan across jurisdictions are setting the new standard for resilience in Texas.

Now is the time for cities, counties, and partners to build on that foundation — to use today’s funding not just to recover from the last disaster, but to prepare for the next one.