Houston Settles Lawsuit, Reduces $320M Budget Deficit, Contributes to Infrastructure

Houston Mayor John Whitmire announced a settlement in the longstanding 'Rebuild Houston' lawsuit, allowing the city to reduce its budget deficit by about one-third and gradually meet voter-approved funding for street and drainage projects. The deal follows years of legal battles after engineers Bob Jones and Alan Watson sued the city for misusing dedicated infrastructure funds, a claim ultimately upheld by the Texas Supreme Court. Instead of an immediate $100 million allocation to the fund, the city will incrementally increase its contributions—starting with $16 million this year, $48 million next year, and reaching the full amount by 2028. Whitmire and city officials described the agreement as a significant step toward financial transparency and infrastructure repair, while also addressing the immediate fiscal shortfall. Some critics and observers note, however, that full funding for these essential infrastructure projects will still take several years to realize under the phased approach. The settlement was broadly supported by city council members and is seen as a 'win-win' by the lawsuit's plaintiffs.