The U.S. and Mexican governments have agreed to invest up to $400 million in water conservation projects along their shared border. The North American Development Bank (NADBank) board made the decision during its first meeting of 2025, responding to ongoing drought conditions across the border region, according to a June 13 press release. The new Water Resilience Fund will offer low-interest loans and grants for water infrastructure projects.
As drought has hit the U.S.-Mexico border region hard in recent years, the recently approved funding aims to help communities deal with water shortages while building better infrastructure for the future.
NADBank will split the $400 million equally between the U.S. and Mexico to ensure both sides get fair support. The fund will offer low-interest loans and may add market-rate financing to reach more projects. Agriculture projects dealing with drought will get priority in the first phase.
“This approach is designed to strengthen the overall investment system and speed up the implementation of high-priority water infrastructure projects,” said NADBank Managing Director John Beckham.
The bank will accept public comments on the Water Resilience Fund for 30 days before the board gives final approval. About 100 people attended a recent public meeting to discuss environmental issues and proposed projects for their communities.
NADBank was established in San Antonio, Texas, and began operations in November 1994, with the initial capital subscriptions of the U.S. and Mexican governments. The bank is authorized to serve communities located within 100 km (about 62 miles) north of the international boundary in the four states of Texas, New Mexico, Arizona, and California in the U.S. and within 300 km (about 186 miles) south of the border in the six states of Tamaulipas, Nuevo Leon, Coahuila, Chihuahua, Sonora, and Baja California in Mexico.
