![McAllen Public Utility (MPU) was awarded a nearly $10 million grant from the U.S. Department of the Interior Bureau of Reclamation WaterSMART: Desalination Construction Project WIIN Act Funding Opportunity. The federal funding is for Phase 1 of a McAllen Brackish Groundwater Treatment Facility. Image for illustration purposes](https://texasborderbusiness.com/wp-content/uploads/2025/02/10m-MFe-Water.jpg)
Texas Border Business
McAllen Public Utility (MPU) was awarded a nearly $10 million grant from the U.S. Department of the Interior Bureau of Reclamation WaterSMART: Desalination Construction Project WIIN Act Funding Opportunity. The federal funding is for Phase 1 of a McAllen Brackish Groundwater Treatment Facility.
“This grant is a major victory for McAllen and the Rio Grande Valley as we take proactive steps to secure our city’s water future,” said McAllen Mayor Javier Villalobos. “By investing in alternative water sources like brackish groundwater desalination, we are strengthening McAllen’s resilience against drought conditions and ensuring a reliable water supply for generations to come. Additionally, I am extremely grateful for the support of our federal and state legislators for our grant application, who understand the critical nature of this project for our area.”
The funds will be used for the construction of four test wells for the project. The testing process will help in obtaining the necessary permit from the Texas Center of Environmental Quality (TCEQ), paving the way for the project’s next phase, which includes design and construction.
MPU’s $9.619 million grant application was ranked among the highest rated by the agency. The project also received federal and state legislative support, including from U.S. Senator John Cornyn; U.S. Representative Monica De La Cruz; Texas Representatives Terry Canales; Bobby Guerra; and Sergio Muñoz, Jr., who all highlighted the importance of the project as a crucial step toward securing an alternative water source and diversifying MPU’s water supply portfolio, which relies on the Rio Grande for surface water.
“Following my support in Congress, I am excited to share that the City of McAllen was awarded nearly $10 million in federal funding for the construction of their water desalination plant project. Drought conditions and Mexico’s refusal to comply with the 1944 Water Treaty have devastated water supplies in our communities. I am proud to support community leaders and help secure this critical funding to invest in long-term water sustainability in the Rio Grande Valley,” said Congresswoman De La Cruz.
Hidalgo County Judge Richard Cortez; Hidalgo County Irrigation District No. One General Manager Carlos Guzman; Hidalgo County Drainage District No. 1 General Manager Raul E. Sesin, P.E., CFM; and Rio Grande Regional Water Planning Group Chairman Jim Darling also provided letters of support, highlighting the persistent drought conditions and critically low levels at the Amistad and Falcon Reservoirs.
According to the MPU application, constructing a brackish groundwater desalination facility is essential for long-term water sustainability and resilience.
Building on this momentum, MPU will apply for an additional $20 million federal grant from the same agency for engineering design, environmental assessment and installation of permanent wells. The total estimated construction cost for the brackish groundwater desalination facility is approximately $180 million dollar. MPU plans to seek funding assistance through a loan from the Texas Water Development Board to complete the project.
“McAllen Public Utility is committed to water sustainability, and this federal funding brings us one step closer to diversifying our water resources,” said MPU General Manager Mark Vega, P.E. “With the continued support of our federal, state, and local partners, this project will provide long-term benefits to our community by enhancing water security and preparing for future growth.”
Vega continued, “On behalf of the MPU Board of Trustees, I would especially like to thank Representative Monica De La Cruz’ office for her support on this important project as well as Senator John Cornyn’s and our Rio Grande Valley Texas state representatives, including Terry Canales, Bobby Guerra and Sergio Muñoz, Jr. Additionally, MPU is grateful for the support of Hidalgo County Judge Richard Cortez, Irrigation District General Manager Carlos Guzman, Drainage District General Manager Raul Sesin and Jim Darling, President of the Rio Grande Regional Water Planning Group. Their advocacy helped underscore the urgency of this initiative and reinforced the need for proactive solutions to address our region’s water challenges. This collaboration is crucial as we work toward a sustainable and resilient water future for McAllen and the Rio Grande Valley,” he concluded.