The Flood Infrastructure Fund: Helping communities advance critical flood risk reduction projects

The Flood Infrastructure Fund: Helping communities advance critical flood risk reduction projects Posted on May 20, 2026

The Texas Water Development Board (TWDB) proposed Flood Infrastructure Fund (FIF) Intended Use Plan is now available for public review and comment through June 12. The draft plan outlines the eligibility requirements, minimum standards, timeline, categories, prioritization criteria, and the types of financial assistance available for projects through the FIF program.

The FIF is a financing program created to move flood mitigation projects from concept to construction. The fund was created by the 86th Texas Legislature, resulting in Proposition 8 that was approved by Texas voters in 2019, and the 88th Legislature provided additional general revenue funding to support the FIF program in 2023.

The TWDB administers the fund, which is at the center of the state's flood investment strategy. Its mandate is straightforward: fund drainage, flood mitigation, and flood control projects across planning, design, and construction phases.

More than $312 million is available for the FIF program's third funding cycle (2026-2027), highlighting continued investment in improving flood resilience across Texas. A defining feature of the program is its blended financing model that allows projects to combine multiple funding sources-including local contributions, potential FIF grants, and zero-percent interest loans-to make projects more financially feasible.

To maximize impact, the TWDB established clear guidelines for distributing FIF funding, including caps on grant and loan amounts. This approach makes the most of available resources by pairing targeted grant funding with low-cost financing to enable more communities to implement viable flood mitigation projects.

Who can apply for FIF financial assistance?

Eligibility for FIF is clearly defined and informed by prior flood planning efforts. Applicants must be cities, counties, special districts, or authorities created under Article III § 52, or Article XVI § 59 of the Texas Constitution-key entities leading flood mitigation efforts at the local and regional levels. Additionally, certain nonprofit water supply corporations and other political subdivisions can participate through the planning-focused Flood Management Evaluation (FME) category.

To qualify for FIF funding, a project must be recommended in the State Flood Plan, or an amended regional flood plan, approved by the TWDB. The FIF is designed to support well-developed projects that align with Texas' comprehensive flood planning framework. By focusing on projects identified and evaluated through the regional flood planning process, the program aims to fund initiatives that are positioned to deliver meaningful flood mitigation benefits. As a result, the program does not include standalone ideas, emergency proposals, projects developed outside the state's flood planning process, or ongoing operations and maintenance costs.

Because every project must align with regional flood plans, the FIF reinforces a watershed-based approach to flood mitigation. Projects are evaluated as part of a broader system-upstream, downstream, and across jurisdictional boundaries. For project-specific guidance, applicants should consult the FIF Program Guidance Manual.

The four funding categories

The TWDB categorizes eligible activities into four distinct project groups. FIF financial assistance is available for Flood Management Evaluations (FME), Flood Mitigation Projects (FMP), Flood Management Strategies (FMS), and flood-related projects that have already received a federal award.

Flood Management Evaluation (FME)
The Flood Management Evaluation (FME) category funds planning and study activities considered "flood control planning" as defined in Texas Water Code § 15.405. Eligible activities under the FME category include preliminary engineering studies, feasibility assessments, hydraulic and hydrologic modeling, and obtaining regulatory approvals.

Flood Mitigation Project (FMP)
The Flood Mitigation Project (FMP) category is the construction-focused category. FMP activities include the planning, acquisition, and design for drainage infrastructure, detention ponds, levees, pump stations, property acquisitions, and even permeable pavement. Under this category, eligible applicants may construct or rehabilitate structural flood mitigation improvements or implement non-structural improvements.

Flood Management Strategy (FMS)
The Flood Management Strategy (FMS) category funds long-term, risk-reduction projects that do not fit within the other two categories, including flood warning systems, stream gages, crossing barriers, public education campaigns, regulatory enhancements-like adopting stronger floodplain standards-and the development of buyout plans.

Federal Award Matching Funds

If an applicant has received a federal award for flood-related activities that is contingent upon the availability of local matching funds, FIF grant funds may be provided for a portion of the applicant's required federal match. Proposed activities must be a recommended Flood Management Evaluation, Flood Mitigation Project, or Flood Management Strategy in a regional flood plan. A federal application must be submitted by the abridged application deadline, and federal funds must be awarded prior to a TWDB invitation to submit a full application.

How much funding is available?

FIF financial assistance is structured to support a range of project needs with defined funding caps per application and within each project category that apply to grants, loans, and in-kind funding terms. For Flood Management Evaluations and Flood Management Strategy projects, applicants may access up to $5 million in grants and $5 million in loans. And for Flood Mitigation Projects, support increases to $15 million in grant assistance and $30 million in loans.

Generally, FIF grant funding eligibility is based on the Annual Median Household Income (AMHI) of the project area. Flood Management Evaluations and Flood Management Strategy projects are eligible for up to 100 percent grant funding-which means the assistance would not need to be repaid-depending on the AMHI in the applicant's project area.

How are projects scored and prioritized?

The TWDB uses a two-phase process to evaluate FIF applications. First, abridged applications are submitted-which are essentially shortened versions of full applications that include key information necessary to assess initial eligibility and prioritization. Then, each abridged application is considered by using pre-determined scoring criteria that supports transparent and consistent evaluation to ensure fairness and efficiency in determining how the available funding will be distributed. The final score determines the project ranking on that funding cycle's prioritization list, which establishes whether an entity is invited to submit a full application.

The scoring process focuses on projects that will deliver the greatest flood risk reduction, with emphasis on the number of structures at risk during a 100-year flood. Other factors include the population at risk, the number of flood-prone low water crossings, and the frequency of road closures during heavy rainfall. Another key consideration is how many structures the project would remove from the floodplain.

Federal match projects are ranked based on when the applicant receives the federal award. If two projects receive the same score, the TWDB evaluates and prioritizes the project with the higher Social Vulnerability Index (SVI), a CDC measure that uses census data to identify communities that may benefit most from additional support.

With a state as vast as Texas and known flood risk in every flood planning region, the TWDB works to ensure that opportunities are shared across the state. So, the TWDB can potentially fund a lower-scoring project if needed so that each region has the opportunity to advance at least one project within each category.

Finally, using the project prioritization list, the TWDB invites entities with the highest-scoring projects to submit a full application. Those who choose to move forward meet with TWDB staff to receive helpful tips and guidance. These pre-application meetings outline important requirements and provide valuable insights to help applicants prepare for and successfully move on to the next step in the process.

The TWDB Executive Administrator reviews each complete application and makes a recommendation for the Board to consider during a public meeting. If approved, applicants receive a financial assistance commitment to move their project forward.

The FIF program supports critical flood infrastructure and helps Texas communities reduce flood risk while becoming more resilient and better protected from the impacts of flooding. For more information about the FIF program and the 2026-2027 funding cycle, visit the TWDB website.

This article is posted in Flood / Financial Assistance .