“Colonias along the border have historically lacked the most basic necessities, like water and sewage"
Texas Insider Report: WASHINGTON, D.C. – Today, Congressman Tony Gonzales (TX-23) introduced the Ensuring Continued Access to Funding for Colonias Act in the U.S. House of Representatives to protect federal funding sources for colonias along the U.S.-Mexico border. Colonias, often unincorporated and outside city limits, are characterized by high poverty rates and a lack of adequate water, sewer, and decent housing infrastructure. Since 1991, HUD has set aside a dedicated percentage of grant funding for colonias along the border under the Community Development Block Grant (CDBG) program to improve access to these basic needs. However, due to an outdated population standard—last revised in 1990—many colonias are at risk of losing this specific set-aside in the near future.
Congressman Gonzales’ bipartisan bill, supported by the entire Texas border delegation, corrects this issue by raising the population eligibility for the Colonia Set-Aside of the Community Development Block Grant Program from 1,000,000 to 2,000,000 residents.
This ensures that colonia communities located in larger metropolitan statistical areas, such as El Paso and McAllen, remain eligible for targeted CDBG federal funding. Texas has the most colonias of the four border states.
“Colonias along the border have historically lacked the most basic necessities, like water and sewage. Though federal grant funding exists to address those needs, an outdated provision in the law may soon disqualify these communities from being eligible for it. My legislation, the Ensuring Continued Access to Funding for Colonias Act, corrects this problem so that colonias continue to have a fighting chance for self-sufficiency and economic development. Preventing colonia grant funds from lapsing is not only the right thing to do—it is essential to promoting public health, safety, and security along the border,” said Congressman Tony Gonzales.
U.S. Representatives Henry Cuellar (D-TX), Monica De La Cruz (R-TX), Vicente Gonzalez (D-TX), and Veronica Escobar (D-TX) cosponsored Congressman Gonzales’ legislation.
“Colonias in South Texas continue to face serious infrastructure and housing challenges. This bipartisan effort ensures they aren’t left behind,” said Congressman Henry Cuellar. “As cities like Laredo and communities across the Rio Grande Valley grow, we must ensure colonias can still access the federal funding that supports clean water, sewer systems, and safe housing. This bill updates outdated rules so colonias in expanding metro areas remain eligible for assistance. I’ll keep working to deliver the resources families depend on – and to make sure our tax dollars are invested back into the communities that need them most.”
“Colonias in South Texas deserve access to clean water and safe, sanitary housing. As our communities continue to grow, so must our commitment to support them. By expanding population eligibility through this critical legislation, we are ensuring that more colonias qualify for the funding and resources they need,” said Congresswoman Monica De La Cruz.
“This is about doing what’s right for our communities that are in need of clean water, safe housing, and modern infrastructure,” said Congressman Vicente Gonzalez. “South Texans should not be punished simply because their surrounding areas have seen population growth. This bipartisan bill will ensure colonia communities remain eligible for vital federal resources.”
“Colonias across the Borderland often lack critical infrastructure and support, like potable water, affecting the health and prosperity of our community,” said Congresswoman Veronica Escobar. “The Ensuring Continued Access to Funding for Colonias Act will help our local government overcome the financial obstacles to provide first-time, and much-needed, infrastructure to colonias. Ensuring colonias get the funding and support they need has been a priority for me since my time in El Paso County government. I’m proud to have brought millions in funding during my time in Congress and, now, proud to join my colleagues in continuing to elevate the needs of families living in colonias and maintaining federal support as well.”
Background on the Ensuring Continued Access to Funding for Colonias Act:
Colonias are predominantly rural, Hispanic communities located along the U.S.-Mexico border, characterized by substandard housing, inadequate access to potable water and wastewater infrastructure, and high poverty rates. Under current law, which was last updated in 1990, colonias located within metropolitan statistical areas (MSAs) with populations exceeding 1,000,000 are excluded from eligibility for the Community Development Block Grant (CDBG) Colonia Set-Aside Program—even if they continue to face the severe infrastructure deficiencies characteristic of colonias.
According to a September 2024 GAO report, nearly 60 percent of all colonias are projected to lose access to set-aside funding in the future solely due to population growth in surrounding MSAs, not improvements in living conditions. HUD officials expect that both the El Paso and McAllen MSAs—home to some of the largest concentrations of colonias in the country—will surpass the 1 million threshold soon.
Once this occurs, an estimated 1,222 colonias in those areas, representing nearly 60 percent of HUD-identified colonias, will lose access to targeted CDBG funding. While these communities may still apply for general CDBG funding, they will no longer benefit from the dedicated set-aside program, which was designed specifically to serve their needs.
For bill text, click here.
