{Brief}ly Speaking about a rare $1 billion funding opportunity for Texas water systems. SEH’s Daniela Garnica breaks down the Texas Water Development Board’s Water Supply and Infrastructure Grants program, including who qualifies, what projects are eligible, and how it differs from traditional funding. With a fast-approaching 2027 deadline, this episode highlights what communities need to know now to plan strategically and secure long-term water reliability.
Note: The Texas Water Development Board's Water Supply and Infrastructure Grant (WSIG) program discussed in this episode was a one-time funding opportunity and is no longer accepting applications. However, the insights shared on project readiness, funding strategy, eligibility evaluation, grant stacking, and long-term water infrastructure planning remain relevant for communities pursuing current and future water funding opportunities.
Mollie (Host)
Welcome to {Brief}ly Speaking, the SEH podcast that tackles big topics in architecture, engineering, and construction with quick expert insights. Today, we're unpacking something that's huge for Texas Water, a $1 billion water supply and infrastructure grant program rolled out by the Texas Water Development Board. This is a year run-of-the-mill loan program. It's A one-shot peer grant, and it could really reshape local water systems across the state. If you're a city planner, utility manager, engineer, elected official, or just somebody who cares about sustainable water in Texas, this episode is for you. Talking with us today is Daniela Garnica, based in Austin, Texas. Daniela is a federal program specialist with deep experience in state and federal funding for water and wastewater infrastructure. She helps communities navigate grants, manage compliance, and maximize funding impacts. And today, she's going to break down the what, the who, the how, and the strategic why behind this once in a generation funding opportunity. So Daniela, welcome to {Brief}ly Speaking.
Daniela (Guest)
Thank you, Mollie, and thank you for having me. I'm excited to break this down because as you've described it, this is a historic once-in-a-generation don't-miss-it type of funding, and there's a reason for that.
Mollie (Host)
Yeah, and we definitely don't want people to miss it. So I'm glad that you're here to kind of give us the breakdown on it. So let's start with the generic background. What exactly is the Water Supply and Infrastructure Grant Program and how did it kind of come to exist?
Daniela (Guest)
Okay, so at its core, the Water Supply and Infrastructure Grants Program or WSIG. It's a one-time historic grant opportunity created by the Texas legislature during the 89th session. It was appropriated $1.038 billion directly to the Texas Water Development Board through the House Bill 500, specifically for water supply and infrastructure projects. And that's important because this money did not go to an existing fund like SWIFT or the SRFs. It came straight from the general revenue. Because of how it was written into law, the Texas Water Development Board had to stand up a brand new grant program with its own rules, eligibility, and timeline. Once this money is out of the door, that's it. There's no coming back.
Mollie (Host)
So this is just a brand new program, one-and-done type of thing. So as like we just said, it's kind of its own new system. How is that different from other Texas Water Development Board financial assistance programs, like you said, SWIFT or traditional loans?
Daniela (Guest)
And this is where the WSIG grants really set apart. Unlike SWIFT or the drinking water or clean water SRFs, which are loan-based and revolving, WSIG is 100% grant funding. No repayment, no interest, no long-term debt on the back end. Another key difference is the WSIG does not rely on the Texas Water Code's usual program structure. Since they didn't tie the money to an existing fund, That's why some things feel different from eligibility to environmental review. And lastly, WSIG is a strictly limited scope. It's not really that broad and flexible like SWIFT or SRFs.
Mollie (Host)
So people who have filed for other types of funding in the past and think, Oh, I know how to do this, I've done this before, this is kind of new territory for everyone, right?
Daniela (Guest)
Absolutely. Brand new application that nobody has seen yet.
Mollie (Host)
Then who is eligible for this grant? Let's start there because we're going to get into kind of how people fill it out and what the process is. We need to know who can do it. So who is eligible for this grant and who is not?
Daniela (Guest)
Eligible applicants are governmental entities. Those include cities, counties, river authorities, special district, and any political subdivision. Who is not eligible? Those are water supply corporations investor-owned utilities and other private entities and that's not a policy of choice it's constitutional Texas doesn't allow general revenue grants to private entities unless there's a clear pre-existing authority. Practically speaking this means some system will need to either partner with the city or district if you don't have that structure lined up WSIGs will not be available for your community.
Mollie (Host)
Okay, so it is, like you said, pretty strict there on not only just like the who, but how it's done and what it goes towards. So why is this money so important to Texas communities right now?
Daniela (Guest)
Well, timing is everything. Texas communities are facing aging water systems, capacity limits, and inflation driven construction costs. WSIG provides large scale grant dollars at a moment where many communities cannot afford to take on more debt, but still need to fix or build critical infrastructure. So for some communities, WSIG isn't just helpful. It's a difference between a project happening or not happening at all.
Mollie (Host)
Yeah, and Texas, like you said, is having such vulnerabilities with infrastructure, with just the changing weather patterns. I know you guys have had some crazy weather here and there of extremes. So the communities are really going through it and that costs a lot of money. So this is a huge opportunity.
Daniela (Guest)
Including fast growing population.
Mollie (Host)
Exactly, yeah, growing so quickly. What types of projects now qualify? So we talked about the who, we talked about why this is so important. What kind of projects can qualify as water supply or infrastructure under the Water Supply and Infrastructure Grant? And then also what is excluded?
Daniela (Guest)
WSIG is supports a wide range of water supply and infrastructure projects. So that includes like a new well or anything that creates a new water supply source, transmission and distribution improvements, groundwater wells, storage facilities tied to the supply system, and projects that increase system capacity or reliability. What's not eligible? Wastewater projects, flood control and drainage, and any projects without a clear water supply nexus.
Mollie (Host)
So I've heard that the money has to be spent by August of 2027. What's the impact of that deadline on communities planning and project execution?
Daniela (Guest)
All WSIG funds must be fully expended by August 31, 2027. And that affects everything permitting, environmental clearance, land acquisition, engineering timelapse, procurement. However, applications will be due July 30, 2026, which puts us in a bind. So communities cannot treat WSIG as a long range planning pot. If your project isn't moving fast, then it's probably not a good idea to move forward with this funding. This deadline heavily favors shovel-ready projects or projects already in design.
Mollie (Host)
So you really have to be ready to hit the ground running with construction once we submit that application, correct?
Daniela (Guest)
Absolutely, yes.
Mollie (Host)
Applications should be coming out here in the next couple of days, right?
Daniela (Guest)
Texas Water Development Board announced that they will post the application April 1, 2026. So we expect those to come out pretty soon.
Mollie (Host)
So there is some time here for that planning stage until the applications are due, but you're going to want to get applications in right away because it's first come first serve, correct?
Daniela (Guest)
Not actually. The board will start reviewing applications as soon as the deadline. So it's not first come first serve. It's based on project prioritization. So there is a criteria and it benefits those that are low and medium household income.
Mollie (Host)
Okay, so are there things that communities should focus on when filling out this application? And obviously this is something that you in your role could help communities with and help them figure out how to best present their project, their community. But what are some things that they should be thinking of to include in an application that would maybe help them be favorable for this funding.
Daniela (Guest)
Absolutely. So MHI, it's the biggest criteria, a low medium household income. So if you're below $76,000 in medium household income, you should definitely look after this funding. Now, projects that are ready to proceed or shovel-ready, what we call them, get additional points. So If you're a low household income community and have a project that have done all the planning and design already and you just need funding for construction, you have high chances of getting this funding for sure.
Mollie (Host)
Perfect. So they should come if they aren't really sure that this is a good fit for them or if they have a project that matches this kind of funding, could they reach out to you and kind of talk through some of those questions like you were just talking about?
Daniela (Guest)
Absolutely. I'm more than free and welcome to discuss any type of eligibility requirements with any community.
Mollie (Host)
One of the challenges that we see with typical funding is stacking, right? People like to try to stack funding opportunities together. Is that something that can be done alongside this grant? Can community leaders think about matching this funding with like federal dollars or other local funds?
Daniela (Guest)
Absolutely. Smart applicants are stacking these grants. They're not using it alone. So it might look like federal loans or local cash and bonds. WSIGs can handle eligible water supply construction while the other programs can pick up on the wastewater component or the road restoration or planning and non-eligible elements of the project. The key is alignment and making sure that timelines do not conflict.
Mollie (Host)
I love that suggestion of, or that thought process of the road improvement there too, because so many times when we are redoing these distribution mains or anything along those lines, you do have to tear up some parts of roadways or whole roadways and then they would be responsible for funding that repavement. But if you could stack it with another type of grant or loan, that would take care of that side of the cost. So I think that's the reason that having you on here is important because you can kind of think through these things and all the different steps and help people plan ahead. As you're going through having conversations with communities getting ready for this, what are the main challenges you're hearing from applicants about this program?
Daniela (Guest)
So a few things. There was a lot of confusion about eligibilities. Water supply corporations are big in Texas and they serve a lot of population. So that is yet to be clear from the board. Also not having projects far enough along to meet the readiness requirements because some communities do think that those additional 10 points not having your project there could potentially reduce your chances. So that's another one. Smaller communities struggling with limited staff and engineering. Also projects could be like too broad and some communities had a lot of questions as far as what components were legible and which others weren't. Underestimating the application deadline for sure. Although July 30, 2026 seems like it's far away from us, it's not too far. I mean, four months go by pretty quickly. This program really lacked a lot of clarity and readiness, but the board is trying their best to get to all those questions.
Mollie (Host)
And I'm sure new information is coming out really frequently, especially as we're getting to that application release date. And I'm sure here afterwards too, because again, this is a brand new program. It's being created as we go. So I'm sure there's new information, more clarity, like you were saying, coming out every day that as your job you're keeping on top of, but like you said, smaller communities without that staffing, they might not be aware of. So for communities that are ready to tap into the water supply and infrastructure grant, no pun intended there, what's the very first step they should take to get started?
Daniela (Guest)
I think step one is not the application itself, but step one is a reality check, right? Am I eligible? You have to confirm that eligibility. Is your project eligible? You have to confirm that the project that you intend to apply for meets the eligibility criteria. Is it strictly water supply or do you have other components involved? Is it feasible to submit the application by July 30, 2026? Are we ready to have all those application components in place by such date? I think those are a few questions that you gotta answer before moving into tending to apply. So if you confirm all these items, then reach out to your engineering team and consultants immediately. Gather all the data and start preparing for the application bid because it's coming out pretty soon. Each applicant can only submit one application for this grant. So internal alignment is crucial and this is only one project per community.
Mollie (Host)
And if communities don't have a consulting or engineering firm or they just haven't heard about anything like this from their firms and they wanted to reach out to you because you are an expert at this, what's the best way to get a hold of you?
Daniela (Guest)
Feel free to reach out to my e-mail is ngarnica@sehinc.com. If not, give me a call. My direct line, it's 830-262-9101. If not, reach to me by LinkedIn. I'm available in LinkedIn also. Ask Norma Daniela Carnica and I'll be happy to answer any question.
Mollie (Host)
You're available all over the place and we'll be sure to tag you in any posting that we do as well so it makes it easy to get to your LinkedIn. The Water Supply and Infrastructure Grants Program represents a rare opportunity as we've heard today. One-time funding, tight timelines, and big potential impacts for communities working to secure reliable water systems for the future. As Daniela shared today, success won't come from moving fast alone. It comes from planning early, having that reality check, aligning partners, and understanding how funding strategy connects to long-term infrastructure goals. A big thank you to Daniela for helping us break down what communities need to know and how they can position themselves to make the most of this historic investment. If you found this conversation helpful, be sure to subscribe and share {Brief}ly Speaking with a colleague or community leader who's navigating infrastructure funding challenges. Until next time, I'm Mollie Sabo and this has been {Brief}ly Speaking.
Daniela Garnica is a Community Development Representative III with SEH, based in Texas. She works with communities and organizations to build relationships, identify opportunities, and support initiatives that advance community goals. Daniela is dedicated to connecting clients with resources and solutions that help drive meaningful outcomes and foster long-term success.