Analysis: Texas’ water future depends on the Rio Grande — and it’s under pressure

By John Beckham, managing director of the North American Development Bank

Last month, communities around the world marked World Water Day, a reminder that water is fundamental to human existence.

Beyond living healthily, it also assures economic vitality and regional stability.

In Texas, though, we don’t have the luxury of thinking about water only once a year. Debates and public comments during last year’s legislative session made clear that safeguarding our water resources demands sustained attention and investment every single day. 

Nowhere is that urgency more visible than along the Rio Grande — known as the Río Bravo in Mexico.

Far more than a geographic boundary, the river is the lifeblood of the U.S.–Mexico border region. It sustains millions of people, supports agriculture that feeds the nation, and underpins economic growth across Texas and northern Mexico. 

Today, that lifeline is under unprecedented strain. 

Persistent drought, surging demand, and aging infrastructure have pushed the river system to a breaking point.

Less than 20 percent of the river’s historic flows now reach the Gulf of Mexico.

Read more: The Valley relies heavily on the Rio Grande for its water — and that could spell challenges as South Texas grows

Environmental organizations rank the Rio Grande among the most endangered rivers in the country. And for South Texas communities, these aren’t warnings, they’re reality. 

Counties in the Rio Grande Valley have repeatedly declared emergencies as water levels drop to dangerous lows.

Farmers face mounting uncertainty about irrigation supplies.

Cities from McAllen and Brownsville to Reynosa and Matamoros are grappling with the growing scarcity.

As Texas leaders work to secure the state’s long-term water future, the health of the Rio Grande must be part of that conversation.  

Meeting this moment requires coordinated action at every level of government: local, state, federal, and binational. 

At the North American Development Bank (NADBank), strengthening water resilience in border communities is core to our mission. For over three decades, the United States and Mexico have entrusted us with financing environmental infrastructure that improves quality of life along the border. 

Last year, the Bank launched a $400 million Water Resiliency Fund to help municipalities, irrigation districts, and other water users adapt to today’s scarcity. The goal is simple: catalyze investment in projects that conserve water, modernize aging systems, and diversify supply sources. 

Texas irrigation districts have responded to the fund with urgency. 

During the initial application period, irrigation districts in the Rio Grande Valley submitted 21 proposals totaling roughly $225 million in total project cost. These projects focus on practical, high-impact improvements — lining canals, converting open channels to pipelines, and upgrading delivery systems to reduce water loss. 

The potential payoff is substantial.

Preliminary analysis shows these projects could conserve more than 55,000 acre feet of water annually — about 49.5 million gallons per day. That’s enough to meet the daily drinking water needs of roughly 600,000 residents of the Rio Grande Valley. 

Read more: Another severe drought could cost South Texas $2.8B and 11,500 jobs

Just as importantly, Texas leaders are stepping up as partners.

Just last week, the Texas Water Development Board agreed to an allocation of $100 million from Proposition 4 to support irrigation district projects in the Valley, complementing NADBank’s Water Resiliency Fund.

This kind of collaboration, state resources paired with binational financing, will accelerate projects that might otherwise remain unattainable. 

For Texas, these investments are about more than pipes and canals. They are about protecting communities, sustaining agriculture, and ensuring the region has the water resources necessary to support continued prosperity. 

No single institution or government can solve the Rio Grande’s challenges alone.

Rivers don’t recognize borders, and neither do the pressures facing them.

But through partnerships and a shared commitment to stewardship, we can ensure the river continues to provide life and vitality for generations to come.