MCUD to pursue $21 million infrastructure grant

Midland County Utility District is preparing to seek about $21 million in state grant funding as it looks to expand its water system, extend distribution lines and reach an area affected by a chromium plume in the southern part of the district.

General manager Norman Ashton said MCUD plans to apply to the Texas Water Development Board’s Water Supply and Infrastructure Grant program, or WSIG. The program was created by House Bill 500, and applications are due July 30, 2026.

The application would come as the district continues to build out service after its Dr. Shelton Viney Water Treatment Plant began delivering water in April 2026. Earlier reporting said the plant publicly opened in May after 34 years of planning and was expected to support additional growth.

Why MCUD is seeking the money

Ashton said the district needs additional funding to extend distribution lines to residential customers who are not yet fully served. He also said MCUD needs lines to the chromium-plume area, which the report said affects 45 residents.

The district was already serving about 2,500 residents after the treatment plant began delivering water. Ashton said the grant would help MCUD move into the next phase of infrastructure expansion.

MCUD’s broader needs are much larger than the current request. Ashton estimated the district’s total infrastructure requirements at more than $1 billion.

How the grant fits the financing plan

Ashton said the grant could create a revenue stream that MCUD could use to issue bonds and apply for no-interest loans. The district is also planning to ask voters in November 2026 to approve a $300 million bond.

That makes the grant application part of a wider financing strategy rather than a stand-alone request. If the district receives state money, it could help support additional borrowing and accelerate the buildout of water service.

MCUD is not the only local government seeking help from the same program. The city of Midland separately applied for a similar $21 million WSIG grant for the Paul Davis Wellfield Restoration Project.

What happens next will depend on the Texas Water Development Board’s review of the application and the amount, if any, MCUD receives. That decision will shape how quickly the district can move forward with the distribution-line work it says is needed for residential service and the chromium-plume area.