Texas Border Business
By Roberto Hugo González / Texas Border Business
State Sen. Juan “Chuy” Hinojosa shared a letter with Texas Border Business outlining what he described as “important developments regarding a potential historic funding opportunity to modernize canal infrastructure in the Rio Grande Valley.” The letter, dated December 19, 2025, is addressed to Rio Grande Valley water district leaders and is provided at the end of this article for reference.
In the letter, Hinojosa writes that the region “continues to face significant water challenges, and all strategies to conserve and manage water must be considered.” He added, “Many of you have met with me, members of our legislative delegation, state leaders, and state agencies. We are listening and taking action.”
Hinojosa points to a recent work session held by the Texas Water Development Board, or TWDB, where plans were discussed for distributing “the $1.038 billion appropriated in HB 500 during the 89th Regular Session.” According to the letter, the discussion included “a staff recommendation to allocate $100 million of these funds for canal lining projects in the Rio Grande Valley.” He wrote that this recommendation “has the potential to benefit all communities in our region.”
The senator provided figures to explain the scale of the issue. “According to reports provided to my office, there are nearly 3,500 miles of irrigation canals in the Rio Grande Valley,” he wrote. He explained that modernizing these canals through lining “will reduce seepage, evaporation, and operational losses.” The estimated impact, he said, could be significant. “It is estimated that these upgrades could save 900,000 acre-feet of water annually, resulting in approximately $270 million in annual savings for the agricultural and municipal sectors.”
Hinojosa also noted that the potential funding could be tied to another program. He wrote that discussions at TWDB indicated the funds “may be linked to projects approved by the North American Development Bank, which currently has an open ‘Call for Projects’ to support urgent water conservation investments in the Rio Grande Valley.” According to the letter, “There are over $300 million available for this Call for Projects,” and the deadline to submit proposals is “January 8, 2026.”
The senator emphasized the urgency of the situation. “This may be our only opportunity to access this level of funding for canal modernization,” he wrote. He said he “strongly encourages all entities in the RGV with canal systems to work together and apply for these funds.”
Hinojosa also cautioned that the proposed $100 million allocation is not final. “The $100 million recommendation from the Texas Water Development Board could change,” he wrote. He explained that the agency’s decision will be “based on the public comments the agency receives on their proposal to distribute the grant funds the Legislature provided.”
As a result of that process, he stressed the importance of participation. “It will be very important that all of you submit public comment in support of the importance of the lining of the canals in the Rio Grande Valley,” Hinojosa wrote, noting that grant guidance is expected to be released on January 5, 2026. He added that “the final date for public comments will be February 4, 2026.”
Hinojosa closed his letter by thanking the recipients and offering continued communication. “Thank you for your attention to this important matter,” he wrote. “Please do not hesitate to contact me if you have any questions or need additional information.” The full letter referenced in this article is below’
