Press Release

Rep. Cuellar Announces Nearly $5 million in federal funds for Rio Water Supply Corporation and Rio Grande City Economic Development Corporation

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RIO GRANDE CITY, Texas, October 26, 2016 | Rafael Benavides ((956) 725-0639) | comments

Today Congressman Henry Cuellar (D-TX-28) announced close to $5 million in federal funds for the Rio Water Supply Corporation and the Rio Grande City Economic Development Corporation.


Congressman Henry Cuellar (D-TX-28) and USDA Rural Development Texas State Director Paco Valentin present a check for $4,650,000 to the Rio Water Supply Corporation in Rio Grande City on Wednesday.



Congressman Henry Cuellar (D-TX-25) and USDA Rural Development Texas State Director Paco Valentin present a check for $300,000 to the Rio Grande City 4B Economic Development Corporation in Rio Grande City on Wednesday.


The Rio Water Supply Corporation will receive $4,650,000 million in grants and a loan of $293,000. These funds will be used for improvements needed to stabilize the water distribution system pressures and to ensure an adequate volume of safe drinking water.

Meanwhile, the Rio Grande City 4B Economic Development Corporation will receive a $300,000 grant that will be used to purchase land for redevelopment as an incubator for small businesses.

Specifically, the Rio Water Supply Corporation will install approximately 12 miles of pipe lines and construct a 500,000-gallon elevated storage tank. This project is being financed with a $293,000 loan, a $1,005,500 grant, and a $3,356,500 Colonia grant.

Construction should begin in early 2017 and will take approximately one year to complete.

“Once construction is completed, the water system will be in compliance with the Texas Commission on Environmental Quality,” Congressman Cuellar said. “Local schools also will no longer have issues with safe drinking water, thanks to this federal investment.”

The $300,000 grant for the Rio Grande City 4B Economic Development Corporation will help the city’s Small Business Incubator provide up to five start-up small businesses with affordable spaces as they begin their ventures. The funds will also help position small businesses for competitiveness and viability with technical support provided by the Rio Grande City Economic Development Center and the area’s business development partners.

“At the end of the day, this federal investment for the people of Rio Grande City will contribute to the city’s economic growth and improve local employment opportunities,” Congressman Cuellar said. “This will also help to increase local tax revenues and help reinvest in public services.”

“I would like to thank Congressman Henry Cuellar for his leadership and proactive role in securing these much needed funds for the citizens of Starr County,” said Paco Valentin, USDA Rural Development Texas State Director.  “It is a great occasion for local leaders to be announcing the funding of two projects in the same county.  I would also like to commend our rural leaders for their forward thinking vision that ultimately equates to increased economic opportunities and improved quality of life."

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