Binational bank launches $400M fund for border water projects as Rio Grande Valley faces worsening drought

Rio Grande Valley communities have now been in a state of emergency over drought conditions for more than a year.

It’s a reality that’s hampered the agriculture industry and put municipal leaders on notice to improve their strategy to ensure clean drinking water for the long-term – or face a growing population without access to the resource essential for life. 

The North American Development Bank (NADBank) is there to help communities combat the water issue. The binational bank — funded by both the federal government of U.S. and Mexico — is dedicated to improving the quality of life and tackling environmental issues.

NADBank leaders visited McAllen on Thursday to share details about the new Water Resiliency Fund, a grant program open to irrigation districts across Hidalgo, Cameron, Starr and Willacy counties. 

In August, NADBank’s board of directors approved $400 million in financing for U.S.-Mexico border water conservation projects. Inside that figure, NADBank is using $100 million for “concessional financing” which refers to favorable loan terms, often forgivable grants, over the next five years. The remaining $300 million will be used for low-interest loans through the bank’s existing revolving loan fund. 

“Our irrigation districts are at the heart of regional water management, and their work directly impacts the families, farmers, and businesses that depend on this vital resource,” Hidalgo County Judge Richard F. Cortez said in a news release. 

The new Water Resiliency Fund could cover up to 50% of project costs through a combination of grants and low-interest loans, leveraging funding by local governments, federal or state grants, or traditional NADBank loans.

“The Lower Rio Grande Valley River Basin on both sides [of the border] is the [fifth] most endangered river by American Rivers. That jumped out at us,” said John Beckham, managing director for NADBank. “It’s a strategic investment in our shared binational future.” 

Beckham described the fund as a targeted financing tool for water projects that “show clear results” in the area of conservation, efficiency, or procuring new sources of water for communities. That could mean water irrigation infrastructure improvements, conversion of open-air canals to underground pipelines, storage or re-use of water, or technology that could monitor or reduce water loss in the system. 

“These collaborative efforts reflect the kind of strategic, forward-thinking investment needed to strengthen the Lower Rio Grande Valley’s water security for generations to come,” Cameron County Judge Eddie Treviño, Jr. said in a statement. 

Municipal water organizations in the Rio Grande Valley have until Jan. 8, 2026, to apply.