Texas Border Business
WASHINGTON – U.S. Senator John Cornyn (R-TX), along with Senator Ted Cruz (R-TX) and Representatives Monica De La Cruz (TX-15), Vincente Gonzalez (TX-34), Tony Gonzales (TX-23), Veronica Escobar (TX-16), and Henry Cuellar (TX-28), today sent a letter to the North American Development Bank (NADBank) expressing strong support for the re-establishment of NADBank’s Water Infrastructure Fund and urging the board to take swift action in restoring this critical program to improve water security for border communities.
“The need for sustainable water management in the U.S.-Mexico border region is greater than ever. Re-establishing the fund would be a significant step in ensuring long-term water security for both municipal and agricultural communities,” they wrote.
“As it did in previous years, NADBank should use funding from retained earnings to provide concessional financing such as grants or subsidized loans for water conservation and diversification projects. This investment is essential to the well-being of our American municipalities and agricultural projects, and we fully support the Bank’s role in overseeing and implementing the fund to ensure these resources are allocated effectively.”
“We appreciate Senator Cornyn and the other members of the Texas delegation for their thoughtful letter, which has been shared with our Board. The letter’s recommendations, and other possible lines of action, will be discussed at our upcoming Board meeting in November,” said John Beckham, NADBank Managing Director. He also added that “throughout this year, we have been engaging with border communities, agricultural water users, and irrigation districts on both sides of the U.S.-Mexico border so we can effectively support the planning and investment required. Our engagement is both a response to the current water emergency and our longstanding commitment to invest in water infrastructure.”
“We are confident that the re-establishment of the Water Infrastructure Fund will greatly benefit both sides of the border, ensuring that our communities have the water resources they need for the future,” the lawmakers concluded.
Full text of the letter is here and below.
October 7, 2024
United States Board Members
North American Development Bank
203 S. St. Mary’s St., Ste 300
San Antonio, Texas 78205
Dear Members of the Board,
We are writing to express our strong support for the re-establishment of NADBank’s Water Infrastructure Fund and to urge the Board to take swift action in restoring this critical program. The need for sustainable water management in the U.S.-Mexico border region is greater than ever. Re-establishing the fund would be a significant step in ensuring long-term water security for both municipal and agricultural communities.
As it did in previous years, NADBank should use funding from retained earnings to provide concessional financing such as grants or subsidized loans for water conservation and diversification projects. This investment is essential to the well-being of our American municipalities and agricultural projects, and we fully support the Bank’s role in overseeing and implementing the fund to ensure these resources are allocated effectively.
Any grant funding re-established through this program must be directed to both municipal and agricultural projects. These projects should not only conserve water, but also explore new ways to create additional water sources in the border region. In doing so, NADBank can address the urgent need for water security on both sides of the U.S.-Mexico border.
The flexibility of the grant program is critical. NADBank must be permitted to fund partial project costs in coordination with loans to enable solutions for a wide variety of projects. Additionally, NADBank should not be prohibited from providing loan financing to cover any remaining costs so as to ensure the fund remains adaptable and accessible.
Leveraging resources from other federal and state agencies such as the USDA-Rural Development, Bureau of Reclamation, and the Texas Water Development Board, will be critical in closing the funding gap for these water projects. We urge the Board to coordinate efforts with these entities to maximize the impact of NADBank’s investments.
Lastly, we request that U.S. Board members encourage Mexico to meet its capital commitments in a timely manner, and that the U.S. Board use its voice and vote to expedite the release of the remaining U.S. capital in line with Mexico’s payments.
Thank you for your attention to this matter. We are confident that the re-establishment of the Water Infrastructure Fund will greatly benefit both sides of the border, ensuring that our communities have the water resources they need for the future.
Sincerely,
/s/
