Texas Infrastructure Investment: 2026 Report

our research team analyzed the most comprehensive dataset to date on Texas infrastructure investment and spending across transportation, water, energy, and digital sectors. This 2026 edition reflects the most recent state and federal commitments entering the 2026 planning cycle, drawing from official state budget documents, federal allocations, and long-range infrastructure assessments.

Our findings highlight both historic capital deployment, most notably $148 billion committed to transportation, and persistent long-term funding gaps, particularly in water and utility infrastructure. Together, these trends define the capital landscape shaping Texas’s growth trajectory through mid-century.

Texas Infrastructure Investment by Major Region (2024–2030)

Infrastructure investment across Texas continues to vary significantly by region. Major metropolitan areas dominate total funding allocations, while rural and energy-producing regions focus on essential services, resilience, and connectivity.

Region	Total Investment	% of Total	Primary Focus Areas	Major Projects
DFW Metroplex	$47 billion	28.3%	Highway expansion, transit, utilities	I-35 corridor, DFW airport, water systems
Houston Metro	$38 billion	22.9%	Port, petrochemical, flood control	Hurricane infrastructure, I-45, ship channel
Austin–San Antonio Corridor	$31 billion	18.7%	Population growth, tech infrastructure	I-35 expansion, broadband, water supply
East Texas	$18 billion	10.8%	Energy infrastructure, rural roads	Pipeline projects, rural broadband, bridges
Border Regions (Rio Grande Valley)	$15 billion	9.0%	Trade infrastructure, water projects	Border crossings, colonias water, highways
West Texas (Permian Basin)	$12 billion	7.2%	Energy grid, pipeline infrastructure	Oil/gas facilities, rural connectivity
Central Texas	$5 billion	3.0%	Rural connectivity, agriculture support	Farm-to-market roads, water systems
Total Statewide	$166 billion	100%	Multi-sector development	All major categories

Source: Analysis of TxDOT regional allocations, metropolitan planning organizations, and Texas Water Development Board regional plans.

The DFW Metroplex, Houston, and the Austin–San Antonio corridor continue to account for nearly 70% of statewide infrastructure spending in 2026, reflecting population density, economic output, and congestion pressures. Rural regions, while receiving smaller absolute allocations, maintain higher per-capita investment in water, energy, and broadband infrastructure.

Texas Infrastructure Investment by Project Type (2024-2030)

Texas infrastructure funding remains heavily concentrated in transportation, though water, utilities, and broadband investments continue to expand as strategic priorities entering 2026.

Project Type	Total Investment	% of Total	Primary Funding Source	Timeline
Highway Construction & Expansion	$87 billion	52.4%	State Highway Fund	2024–2034
Bridge Replacement & Repair	$24 billion	14.5%	State/Federal Bridge Programs	2024–2035
Water Treatment & Distribution	$15 billion	9.0%	Water Fund, Federal IIJA	2025–2047
Utility Infrastructure Upgrades	$12 billion	7.2%	Municipal Bonds, Private	2024–2030
Broadband/Digital Infrastructure	$8.5 billion	5.1%	Federal BEAD, State BIF	2024–2028
Airport & Aviation Projects	$6 billion	3.6%	FAA, State Aviation Fund	2024–2027
Wastewater & Sewer Systems	$5 billion	3.0%	State Water Fund	2025–2035
Emergency Infrastructure Repairs	$4 billion	2.4%	Emergency Funds	Ongoing
Public Transit Projects	$3.5 billion	2.1%	Federal Transit Admin	2024–2030
Energy Grid Improvements	$1 billion	0.6%	Texas Energy Fund	2025–2028
Total Major Projects	$166 billion	100%	Multiple Sources	2024–2047

Note: Highways and bridges represent nearly 67% of total investment. Texas committed a record $148 billion to transportation in 2024, including $1.9 billion in new Clear Lanes funding for congestion relief. Most of this investment is supported by Propositions 1 and 7, which redirect oil, gas, and motor-vehicle sales taxes to the State Highway Fund, generating about $4.7 billion annually.

Texas Commits Record $148 Billion to Transportation Infrastructure

Texas set a historic benchmark in 2024 when Texas Department of Transportation (TxDOT) announced a $148 billion transportation investment program extending through 2034. As of 2026, this funding remains the backbone of the state’s infrastructure pipeline.

Investment Category	Amount (Billions)	% of Total	Purpose
10-Year Transportation Plan	$104.0	70.3%	New highway construction and congestion relief
Development & Routine Maintenance	$43.0	29.1%	Infrastructure preservation and repairs
Additional Safety Initiatives	$17.3	11.7%	Rural and corridor safety projects
Clear Lanes Congestion Relief	$75.8	51.2%	Non-tolled projects since 2015 (overlapping category)

Notes: Some categories overlap as projects serve multiple purposes. The $1.9B represents new funding added to the existing Clear Lanes program, which is part of the broader $104B construction category.

Source: Texas Governor’s Office; TxDOT 2024 Unified Transportation Program.

Water Infrastructure Crisis: $154 Billion Investment Gap

Despite transportation dominance, water infrastructure remains Texas’s most significant unresolved challenge entering 2026. According to Texas 2036, the state requires $154 billion in water-related investment.

In May 2025, lawmakers approved a $20 billion long-term water plan via Senate Bill 7 and HJR 7. While meaningful, the funding addresses only a fraction of projected needs.

Infrastructure Need Category	Required Investment	Current Funding Commitment	Funding Gap
Water Supply Projects	$59 billion	$10 billion (50% of $20B plan)	$49 billion
Leaky Pipes & Maintenance	$74 billion	$10 billion (50% of $20B plan)	$64 billion
Wastewater Systems Repair	$21 billion	$2.5 billion (one-time)	$18.5 billion
Total Water Infrastructure	$154 billion	$22.5 billion	$131.5 billion

The approved plan allocates $1 billion annually from 2027 through 2047, covering just 15% of identified needs. With Texas’s population projected to reach 53.2 million by 2080, infrastructure experts describe the current funding as merely a “down payment” on the state’s water crisis.

Underground Utility Infrastructure Drives Regional Economic Impact

For excavation and underground utility contractors like Kitching & Co, the infrastructure investment surge creates significant business opportunities, particularly in the Dallas–Fort Worth region where the company operates. The combination of transportation, water, and utility infrastructure projects generates substantial demand for specialized excavation services.

Project Type	Estimated Value	Excavation/Utility Component	Timeline	Regional Impact
TxDOT Highway Projects (DFW)	$25 billion	15–20% ($3.75–5B)	2024–2034	Direct contractor opportunities
Municipal Water Systems	$8 billion	40–50% ($3.2–4B)	2025–2035	Underground utility work
Broadband Infrastructure	$500 million	60–70% ($300–350M)	2024–2028	Trenching, conduit installation
Private Development	$15 billion	25–30% ($3.75–4.5B)	Ongoing	Site preparation, utilities
Total Regional Pipeline	$48.5 billion	$11–14 billion	6–10 years	Sustained demand growth

Excavation and underground utility scopes consistently represent 20–50% of major infrastructure project value, creating an $11–14 billion addressable market in North Texas alone through the mid-2030s.

Requesting a Copy of This Report

This 2026 Texas Infrastructure Investment Report reflects ongoing analysis of the state’s unprecedented capital commitments and unresolved funding gaps. For excavation and underground utility contractors, Texas’s infrastructure pipeline represents one of the largest sustained opportunity environments in the U.S.

If you’d like to request a PDF copy of this report or learn more about our agency, you can reach out here.

Texas Infrastructure Investment: 2026 Report