Texas Border Business
By Roberto Hugo González / Texas Border Business
SAN ANTONIO, Texas — As drought intensifies across the U.S.–Mexico border, nearly $164 million in combined investment is being directed to water conservation projects in South Texas, while a binational initiative moves forward to strengthen water reliability in northern Mexico.
The plans were announced at the NADBank Summit 2026 by Mexican Ambassador to the United States Roberto Lazzeri Montaño, North American Development Bank Managing Director John Beckham and Texas Water Development Board Chairwoman L’Oreal Stepney.
At the center of the South Texas investment are 12 irrigation districts in the Lower Rio Grande Valley.
NADBank intends, subject to Board approval, to provide $76 million through its Water Resiliency Fund for projects expected to conserve nearly 44,000 acre-feet of water annually. Improvements would include canal lining, converting canals to pipelines and upgrading irrigation systems to reduce water losses and improve efficiency.
The investment is significant for a region where limited water supplies affect agriculture and communities that depend on the Rio Grande.
“One year after launching the Water Resiliency Fund, we are pleased to announce our intent to fund $76 million in investments for South Texas submitted during the first call for projects,” Beckham said.
He said partnerships with the Texas Water Development Board, U.S. Bureau of Reclamation and participating irrigation districts will help maximize the impact of the funding and provide a more reliable water supply for Rio Grande Valley communities.
The approximately $164 million package combines resources from several partners.
NADBank would provide up to $76 million in grants and loans. The Texas Water Development Board would provide nearly $70 million in grant funds, subject to approval at its September Board meeting. The U.S. Bureau of Reclamation and participating irrigation districts would contribute almost $18 million.
Under the Water Resiliency Fund, NADBank may cover up to 50% of total project costs, allowing its resources to leverage additional local, state and federal investment.
The effort extends beyond Texas.
In Mexico, the fund’s call for projects generated 112 expressions of interest from communities across all six northern border states. Sixty percent came from Mexican states along the Rio Grande/Rio Bravo. Projects there will prioritize municipal utilities seeking to conserve water or diversify water resources.
“Water security has become one of the most critical challenges facing the future of the U.S.-Mexico border region,” Lazzeri said.
He said increasingly severe and prolonged drought conditions demonstrate the importance of binational cooperation and strategic investment in securing the future of communities on both sides of the border.
NADBank will continue working with government partners in Mexico to evaluate, structure and finance eligible projects, while future priorities include measuring the water savings produced by funded investments.
Launched in 2025, the Water Resiliency Fund is designed to accelerate water conservation, efficiency and supply-diversification projects for communities facing growing water stress along the U.S.-Mexico border.
