Villalobos says $6 million federal grant will expand opportunity across the Rio Grande Valley

McAllen industrial park project pairs public funding with private investment

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Javier Villalobos Mayor. Photo by Noah Mangum González
Javier Villalobos Mayor. Photo by Noah Mangum González
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By Roberto Hugo González / Texas Border Business

McALLEN, Texas — McAllen Mayor Javier Villalobos said a $6 million grant from the U.S. Department of Commerce will help expand the city’s 47-acre industrial park and strengthen economic development across the Rio Grande Valley.

Speaking during an event at GE Aerospace with U.S. Secretary of Commerce Howard Lutnick and U.S. Rep. Monica De La Cruz, Villalobos said the grant represents an investment not only in McAllen but in the entire region.

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“Today is a special day because we’re announcing that the City of McAllen is receiving a $6 million grant,” Villalobos said.

Villalobos thanked Lutnick and De La Cruz for supporting the project after the city sought federal assistance.

“When the City of McAllen reached out to Washington and to the administration, we asked for help—and that’s exactly what they did,” he said. “They reached out, lifted us up, and helped us move forward.”

He said the project’s benefits will extend beyond McAllen.

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“They’re not just helping McAllen—they’re helping the entire Rio Grande Valley, from Rio Grande City to Brownsville,” Villalobos said. “We are one region, and we’re excited to receive this support and to be recognized as an area with tremendous potential.”

Howard Litnick. Photo by Noah Mangum González

Villalobos said the region is positioned for continued industrial growth.

“As our congresswoman said, this region is hot for business. This area is booming, and we appreciate that you recognize the opportunities we have here,” he said.

Lutnick said the Economic Development Administration grant will fund roads, water, sewer, and other infrastructure needed to expand McAllen’s 47-acre industrial park and prepare it for future manufacturing investment.

“I’m excited to announce a $6 million grant from the Department of Commerce’s Economic Development Administration to help the City of McAllen expand its industrial capacity and prepare for the next generation of manufacturing, trade, and investment,” Lutnick said.

According to Lutnick, the Department of Commerce structured the award to leverage private investment alongside federal funding. He said local leaders secured $34 million in private investment commitments tied to the project.

“Our approach is straightforward. We provide a grant, but we also expect local leaders—the congresswoman, the mayor, the city leadership, and everyone involved—to bring private investment alongside it,” Lutnick said. “The goal is to ensure that American taxpayers are making a sound investment.”

He said the combined investment is expected to create at least 500 jobs while preparing the industrial park for additional manufacturing projects.

Rep. Monica de la Cruz. Photo by Noah Mangum González

Congresswoman Monica De La Cruz said the federal funding will have benefits throughout South Texas.

“Today is not just about the $6 million grant coming from the federal government that I was proud to support. It’s about what that $6 million will do—not only for the City of McAllen, but for the entire Rio Grande Valley,” De La Cruz said.

She said the investment will help create jobs, provide economic opportunities for families, support housing growth, increase airport activity, and expand opportunities for small businesses.

“This $6 million investment will have a tremendous regional impact,” De La Cruz said.

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