Funding dedicated by the constitution is subject to the legislative appropriations process, and will be distributed through the Texas Water Development Board’s existing financial assistance programs.

Prop 4 funds can support water infrastructure improvement, expansion, or new projects in large, small, and rural communities. Public entities that apply for the funding and are approved would benefit from the funds, as well as customers whose rates will not have to cover as much of the project cost. In addition to built infrastructure projects, the Texas Water Fund can also fund other strategies that support water supplies, water efficiency, or flood mitigation.

Prop 4 funding can be used to support wastewater reuse projects and other clean water needs which could improve water quality and environmental flows in rivers and streams. Projects supported by Prop 4 funds must still meet the state’s environmental permitting requirements.

Prop 4 does not prioritize or assign funding to any specific projects, such as a particular reservoir or desalination plant. It dedicates tax revenue into an umbrella fund, the Texas Water Fund, that can support Texas Water Development Board low interest loans and grants. Current law reserves at least half of these funds for meeting the state's long-term water supply needs. However, for any particular project to receive dedicated funds, it must still go through the regular application processes already in place.

Groundwater projects are eligible for funding, particularly if they are in the State Water Plan. SB 7, the enabling legislation for Prop 4, imposes some limits on the use of constitutionally dedicated funding for projects that move fresh groundwater from one region to another.

Industry, water sector, and environmental groups–including TXOGA, TAM, TWA, TRWA, Texas Farm Bureau, National Wildlife Federation, and Environmental Defense Fund support Prop 4. No water sector professional or trade associations oppose the proposition. Limited Prop 4 opposition is either expressed by organizations that oppose dedicating spending through the state constitution, or by local organizations concerned about specific projects they oppose.

Desalination is a water management strategy that uses reverse osmosis filtration technology to remove dissolved solids/salinity to make fresh drinking water. It is a common and important technology that is used for marine and brackish water treatment. For it to be used well, strong regulatory and governance systems must be in place to safeguard against potential environmental impacts, and discharges must be permitted by the Texas Commission on Environmental Quality.

Prop 4 does not authorize any particular desalination project. It authorizes dedicated funding for the Texas Water Fund, which can be distributed to a large range of projects including marine and brackish desalination.