Texas Border Business
AUSTIN, Texas — The Texas Water Development Board (TWDB) authorized the Executive Administrator to award $69.5 million in Water Supply Infrastructure Grants (WSIG) for projects that line or convert irrigation canals. The money is being combined with funding from the North American Development Bank (NADBank). Together, the funds will pay for 17 projects carried out by 12 irrigation districts in Hidalgo and Cameron Counties.
During the 2025 legislative session, lawmakers passed House Bill 500, co-sponsored by Senator Juan “Chuy” Hinojosa. The bill appropriated $1.038 billion to the TWDB for water supply and infrastructure projects across Texas. Earlier this year, the TWDB leadership set aside up to $100 million of those funds specifically for canal lining and conversion work, to be used as matching funds for the NADBank Water Resiliency Program. Under the WSIG plan, state grant funds can be used to cover 50% of the cost of each eligible project.
NADBank is contributing $75.4 million to these projects. Combined with other funding the districts had already secured, the total investment reaches $163.6 million. Once complete, the projects are expected to save about 44,188 acre-feet of water annually, roughly 14.4 billion gallons. For perspective, the city of McAllen uses an estimated 24,500 acre-feet of water a year.
“I appreciate the TWDB setting aside funds for this historic funding opportunity to modernize canal infrastructure in the Rio Grande Valley,” said Senator Hinojosa. “Our region continues to face significant water challenges, and all strategies to conserve and manage water must be considered. For years, and leading up to the 2025 session, many irrigation district leaders met with me, members of our legislative delegation, state leaders, and state agencies about the need to modernize our canals. We listened and took action.”
Senator Hinojosa also praised the local districts for their work in securing the funding. “I commend our irrigation districts’ boards, their managers, and staff for working with NADBank and the TWDB to submit their applications and secure these funds,” he said. “Many of these canals are losing huge amounts of water through seepage and leaks. These projects will ensure more water reaches our farms and communities instead of soaking into the ground. The water we will save will make a positive difference for years to come.”
Information source: The Office of Senator Hinojosa
