Houston faces backlash over $104m water and sewer fund diversion

Houston faces backlash over $104m water and sewer fund diversionPublic advocates are urging the city council to halt a proposed budget transfer that would shift millions away from critical water infrastructure to cover general fund deficits, citing unresolved sewage spills and inadequate drainage.

Residents criticized a proposed FY27 budget measure that would divert $104 million from water and wastewater infrastructure to the city's general fund.

Advocates called for $45 million to fully fund the city's ditch reestablishment program, rather than the administration's proposed $31 million increase.

Independent testing by a local advocacy group found detectable levels of lead in over 25% of 30 sampled homes, amplifying concerns over infrastructure cuts.

A proposed budget maneuver to transfer $104 million from Houston’s restricted water and sewer funds to the city's general fund drew fierce opposition from residents and infrastructure advocates during a May 5 city council meeting. Public commenters criticized Mayor John Whitmire’s fiscal year 2027 budget, arguing that water utility revenues are being diverted to plug general fund deficits largely driven by increased police spending. Advocates from West Street Recovery and the Northeast Action Collective highlighted severe, ongoing deficiencies in the city's water and wastewater networks that require urgent capital. Rebecca Sale, a representative for West Street Recovery, cited preliminary data from an independent water quality study conducted with Texas A&M University. According to Sale, tests of 30 local homes found detectable levels of lead in more than 25% of the properties, including units within a 200-unit apartment complex. Residents also cited ongoing issues with raw sewage spills on private properties. Stormwater infrastructure funding was another major point of contention. Advocates called on the city to fully fund its ditch reestablishment program at $45 million. Speakers argued that the administration’s proposed $31 million increase for drainage is insufficient, noting that 88% of the city's open drainage ditches are located in minority neighborhoods that frequently flood during minor rain events. While the council did not immediately alter the budget proposal, the Mayor Pro Tem requested that the independent lead testing data be shared with the city so Houston Public Works could conduct official verification tests. Separately, the council's agenda included several pending water and wastewater items, including an alternative untreated water supply contract with Harris County Municipal Utility District No. 372, and acceptances of work for wastewater collection system rehabilitation and sanitary sewer cleaning.