Houston faces backlash over proposed diversion of water utility funds to offset new trash fee

Houston faces backlash over proposed diversion of water utility funds to offset new trash feeResidents and environmental advocates are urging the Houston City Council to reject a budget maneuver that would shift Combined Utility System revenues to cover solid waste services, warning it will exacerbate the city's backlog of water, sewer, and drainage needs.

Public commenters criticized the proposed budget for diverting water and wastewater utility funds to offset a new $5 monthly trash fee.

Advocates highlighted severe understaffing at Houston Public Works, pointing to hundreds of vacancies that have stalled critical drainage and ditch reestablishment projects.

Residents urged the council to pass Amendment 4.02, which would allocate $500,000 to hire public works project managers and inspectors to address chronic neighborhood flooding.

Public Works Director MacKay is reportedly working on restructuring water rates to improve equity across the customer base.

The City of Houston's proposed fiscal year budget is drawing fierce opposition from residents and infrastructure advocates over plans to divert water utility funds to subsidize solid waste services. During a June 9, 2026, city council meeting, multiple speakers condemned what one resident described as a "great switcheroo," shifting Combined Utility System (CUS) right-of-way fees to offset a newly proposed $5 monthly trash fee. Stephanie Valdez, representing the Water Justice Program with the Coalition for the Environment, Equity, and Resilience (CEER), warned that the maneuver comes at a critical time for the city's aging network. "Water utility dollars should be used for water infrastructure only," Valdez told the council. "Houston does not have a surplus water system. Houston has a water crisis... dealing with aging infrastructure, water main breaks, sewage overflows, flooding, and decades of deferred maintenance." The proposed diversion coincides with a severe staffing shortage at Houston Public Works. Residents testified that the department has hundreds of vacancies—with one speaker citing up to 900 open positions—leaving the city unable to maintain critical drainage infrastructure. To address the backlog, a coalition of community groups, including the Northeast Action Collective, strongly advocated for the passage of Amendment 4.02. The budget amendment would allocate $500,000 specifically to hire public works project managers and inspectors. Advocates argue these personnel are desperately needed to execute the city's ditch reestablishment and local drainage projects, particularly in flood-prone neighborhoods that have struggled to recover since Hurricane Harvey. While the council weighs the broader budget and the controversial fund transfer, the administration is also reviewing its water tariff structure. According to public testimony, Houston Public Works Director MacKay is actively working on a plan to make water rates more equitable across the utility's customer base.