Understanding TWDB’s 2026-27 Flood Infrastructure Funding Plan for Texas

The Texas Water Development Board (TWDB) has released its Draft Intended Use Plan (IUP) for the 2026–2027 Flood Infrastructure Fund (FIF), opening the door for approximately $312 million in financial assistance for eligible flood mitigation projects across Texas.

The funding cycle includes a combination of grants and 0% interest loans to support planning, design, permitting and construction activities for flood mitigation and drainage infrastructure projects included in approved Regional Flood Plans.

With the public comment period on the draft IUP closing June 12, 2026, and the abridged application window expected to open shortly afterward, communities should take steps to ensure their projects are positioned for funding consideration.

Highlights of the 2026-2027 Draft IUP

Flood Infrastructure and Mitigation Project Funding for Texas Communities

The FIF program provides substantial financial assistance for communities pursuing flood mitigation and resiliency improvements.

Funding available through the 2026–2027 cycle includes:

  • Up to 100% grant funding for eligible Flood Management Evaluations (FME), Flood Management Strategies (FMS) and Flood Mitigation Projects (FMP) subject to program caps

  • Up to 85% grant funding for Flood Mitigation Projects, subject to program caps

  • 0% interest loans for all eligible loan-funded projects

The program supports a broad range of eligible activities, including:

  • Flood planning

  • Engineering and design

  • Environmental permitting

  • Construction of flood mitigation infrastructure

Project Ranking and Regional Opportunities

Project ranking will play a major role in determining which projects are invited to submit full applications. TWDB will prioritize projects based on statewide rankings while also promoting geographic representation by inviting at least one project per flood planning region in each category before returning to strict rank order.

This structure creates meaningful opportunities for communities with lower-ranked projects to remain competitive within their region.

Next Steps for Cities, Counties, and Districts

1. Review the Draft IUP and Submit Comments

Communities and stakeholders are encouraged to review the Draft IUP and provide comments to the TWDB before the public comment period closes on June 12, 2026. Comments may be submitted to FIF@twdb.texas.gov. 

2. Confirm Project Eligibility

Communities should confirm that proposed projects are included in the applicable Regional Flood Plan and understand how projects align with TWDB funding priorities and ranking criteria. Only Flood Management Evaluations (FMEs), Flood Mitigation Projects (FMPs), and Flood Management Strategies (FMSs) included in an approved Regional Flood Plan are eligible for funding consideration.

Freese and Nichols can assist communities in evaluating project eligibility and positioning projects for funding consideration. Even if a project is not competitive in the current cycle, future opportunities are expected as the state’s flood planning process continues to evolve.

3. Prepare for the Two-Step Application Process

Communities should begin preparing now for the TWDB’s two-step application process, which includes abridged applications followed by complete financial applications for invited projects.

The abridged application process allows communities to express interest in funding and provides the information necessary for TWDB to prioritize projects. Communities selected through the initial review process will then be invited to submit a complete application with detailed engineering, legal, fiscal and environmental information necessary for funding recommendations.

Because of the competitive nature of the program and limited application timelines, early preparation is strongly encouraged. 

Learn More: FIF IUP Webinars Hosted by FNI

Register for one of our upcoming webinars to secure your spot:

Tuesday, June 2: Session 1
Tuesday, June 23: Session 2

To help our clients better understand the FIF IUP program and prepare for upcoming deadlines, Freese and Nichols will host two upcoming webinars on the Texas Water Development Board’s proposed 2026-2027 Flood Infrastructure Fund funding cycle. Our stormwater experts will discuss how communities can prepare now to pursue funding for flood mitigation and drainage infrastructure projects across Texas.

Topics include:

  • Eligible applicants and project types

  • Key program requirements and funding opportunities

  • Application development and the two-step application process

  • Project ranking and prioritization considerations

  • Lessons learned from previous funding rounds

  • Strategies to help communities strengthen projects and prepare competitive applications

The webinar will also cover eligible Flood Management Evaluations (FMEs), Flood Management Strategies (FMSs) and Flood Mitigation Projects (FMPs), along with available grant and 0% interest loan opportunities.

Webinar: Discussing TWDB’s 2026-2027 Flood Infrastructure Fund – Details and Applications
Presenters: Dane Schneider, Tanner Helweg and Justin Oswald
Dates: Tuesday, June 2, 2026, and Tuesday, June 23, 2026
Time: 11 a.m. CDT

For more than 25 years, Freese and Nichols has helped clients secure more than $8 billion in loan and grant funding for critical infrastructure projects. This includes more than $5.5 billion in Texas state funding, more than $444 million through the Clean Water State Revolving Fund, and more than $215 million through the Drinking Water State Revolving Fund. Having assisted clients in securing more than $55 million with FIF funding, our firm brings extensive experience in both flood planning and the TWDB financial assistance program.

Communities interested in assistance with project positioning or application development are encouraged to contact Freese and Nichols at Flood-Assistance@freese.com.