TX HJR126

Proposes a constitutional amendment to redirect certain general revenue funds from the Economic Stabilization Fund (rainy day fund) to the Texas Water Fund when the rainy day fund reaches its constitutional cap

Requires the Comptroller to transfer to the Texas Water Fund the lesser of: the amount by which general revenue increased due to reduced transfers to the rainy day fund, or $1 billion (adjusted annually for inflation up to 2%)

Annual inflation adjustment based on the Consumer Price Index for All Urban Consumers, capped at 2% per year

Requires the Comptroller to include estimated Texas Water Fund transfers when preparing biennial revenue estimates for the legislature

Constitutional amendment would be submitted to voters on November 4, 2025, with an effective date of January 1, 2026 if approved