Texas Border Business
By Roberto Hugo González
Texas Border Business
At the McAllen Legislative Wrap-Up Luncheon on October 3, 2025, Rep. Terry Canales (D–District 40) outlined his priorities from the 89th Texas Legislative Session, emphasizing public education, property tax reform, water security, and health care expansion. The luncheon was held at the Embassy Suites Convention Center and hosted by the McAllen Chamber of Commerce and the McAllen Economic Development Corporation.
Canales said the $8.5 billion in new education funding approved this year was historic but still insufficient. “That’s going to translate into pay raises for teachers and other school employees,” he said. He estimated that schools in his district will see “upwards of $170 million” in additional funding. Still, he cautioned that the state has shifted too much of the burden to local taxpayers. “In decades past, the state used to fund about 70% of education, and they really reduced that. That’s why our property taxes are up,” Canales said. “Although we’ve made great investments, we still have a long way to go.”
The representative also addressed property tax changes that will go before voters in November. He cited higher homestead exemptions for all homeowners and additional relief for veterans and people with disabilities. “We increased the homestead exemption for veterans and for people who are disabled by $60,000, which gives them almost a $200,000 tax exemption,” he explained. Canales said the measures are important for families but emphasized that structural education funding issues remain unresolved.
Water security, he said, is one of the Rio Grande Valley’s most urgent challenges. Canales noted that the current reservoir capacity is limited and unreliable. “We depend on extreme weather events, which is code for luck, to get our water,” he said. “If those reservoirs are full, that’s only two years of water for us.” He urged investment in long-term solutions such as desalination of brackish groundwater. “We need water security, because if we don’t have water, we can’t bring industry, we can’t bring anything. Water is life,” Canales told attendees. He praised McAllen’s leadership for exploring regional partnerships to strengthen supply.
On healthcare, Canales pressed for expanding Medicaid in Texas, saying that failure to do so would cost the state billions in federal support. “Healthcare shouldn’t be a luxury. It should be a right,” he said. “Because we have failed to expand Medicaid, we’re leaving billions and billions of dollars on the table. Texas has one of the highest rates of uninsured in the nation.” He added that healthier communities strengthen the economy: “If our people aren’t healthy, they’re not working, and if they’re not working, we’re not generating money.”
Canales also spoke in favor of requiring financial literacy courses for high school students. “Teaching kids about money is absolutely pertinent,” he said, citing the long-term impact of credit scores and responsible financial management.
Summarizing his comments, Canales pointed to education, taxes, water, and health care as interconnected issues shaping the Valley’s future. “Schools, taxes, and water are the biggest things we addressed,” he said. “But the work is far from finished, and we must continue to push for fairness, opportunity, and security for our communities.”
See related stories:
