Austin leaders are looking to adjust the city's approach to creating new affordable housing, both in response to a new state law limiting some local affordability programs and to focus more on lower-income earners.

The details: Austin has used hundreds of millions of bond dollars to support new development with apartments or homes reserved for those earning a percentage of the MFI. The city also has several incentive programs that allow private developers to build larger residential projects if a share of the new housing units are income-restricted, typically capped at 60% to 80% MFI.

However, last year's Senate Bill 840 is affecting how some of those programs function while the local MFI has sharply increased for years, leading to more competition for affordable units and less housing set aside specifically for the lowest income levels.

What's next: City officials will continue to review new regulations and policy options over the coming months.

The Lower Colorado River Authority is conducting studies to determine if a site northwest of Eagle Lake in Colorado County would be suitable for a new, larger water reservoir. 

The details: LCRA already owns the 2,000-acre site, which could add over 13 billion gallons to the Central Texas water supply amid growing water needs. 

Two-minute impact: The river authority, which supplies water and hydroelectric power to many communities throughout Central Texas, is exploring plans to build a new reservoir that could hold up to 90,000 acre feet of water. That would make it larger than the recently opened Arbuckle Reservoir, or two to three times the capacity of Lake Travis. 

Why now? A new reservoir off the river authority's main channel was established in its Water Supply Resource Report, an overview of strategies to address regional water needs, that was approved last year, according to a Feb. 19 news release. 

Thousands of students who apply for Texas’ education savings accounts will likely not be accepted into the first year of the program, application data from the state comptroller’s office shows.

What's happening: Over 101,000 students had applied for Texas Education Freedom Accounts as of Feb. 15. Applications close at 11:59 p.m. March 17.

Program funding is capped at $1 billion for the 2026-27 school year, meaning between 90,000 and 100,000 students will likely be accepted. With demand expected to outpace available funding, applications will be prioritized through a need- and income-based lottery system.

Zooming in: Over 70% of program applicants were from low- or middle-income households, according to data from the comptroller’s office. Under Senate Bill 2, the 2025 law that created the program:

• “Low-income” is defined as families with annual household incomes at or below 200% of the federal poverty line, or about $66,000 for a family of four.
• “Middle-income” is defined as families with incomes at or below 500% of the federal poverty line, or about $165,000 for a family of four.