Abbott Announces $17M Loan to Del Rio for Water Upgrades Benefiting Laughlin

Governor Greg Abbott and the Texas Military Preparedness Commission announced a $17 million loan to the City of Del Rio to rehabilitate the San Felipe East Springs Containment Wall and to expand and modernize Del Rio’s Water Treatment Plant. State officials say the paired projects will add resiliency to Del Rio’s water capacity and support mission readiness at Laughlin Air Force Base.

The governor’s office released the loan news on February 4, 2026, identifying the Texas Military Value Revolving Loan Fund (TMVRLF) as the source. The TMVRLF is described in the release as “a comprehensive loan program providing financial assistance to defense communities in Texas.” The release also states that the TMVRLF is financed through the sale of general obligation bonds.

Governor Abbott framed the announcement as both a community and security investment. “Texas is proud to support the City of Del Rio and the Laughlin Air Force Base as we invest in critical water infrastructure that Texans depend on,” Abbott said in the governor’s press release. “These funds will strengthen the local community, support mission readiness at Laughlin, and advance our commitment to a strong military community across Texas. I thank the Texas Military Preparedness Commission for their investment and dedication to the future of Southwest Texas and our military communities.”

Hoodline reported that the Texas Military Preparedness Commission had closed on the $17 million loan, a step that Hoodline says allows city officials to move into design and contracting. Hoodline further reported that local leaders have urged expedited engineering so the projects can be built quickly.

Local reporting places the loan in an acute South Texas drought context and a contentious local-rate environment. TexasScorecard reported that Del Rio has already increased water rates to fund infrastructure and that City Manager Shawna Burkhart explained a possible water and sewage rate increase at a December 1 town hall. TexasScorecard also reported that the city implemented a rate increase the month before and that the Del Rio City Council apologized for that illegal increase at its November 10 meeting.

Key implementation details remain unspecified in public statements: no breakdown of the $17 million between the containment-wall rehabilitation and the treatment-plant work has been released, and no construction start dates, contractor names, loan terms, or projected capacity gains have been published. The governor’s release and Hoodline’s account confirm the funding and program mechanism, while TexasScorecard provides municipal context and recent rate actions.

For Del Rio residents and Laughlin personnel, the immediate development is procedural: city officials are positioned to advance design and contracting, but residents should expect upcoming council or town-hall discussions on engineering plans, contractor selection, and any future rate implications. Local officials and the Texas Military Preparedness Commission will need to provide loan terms, project timelines, and a funding allocation to answer how quickly the San Felipe East Springs Containment Wall and the water treatment plant upgrades will deliver the promised resiliency.