The Texas Water Development Board (TWDB) authorized $30 million in financial assistance for water and wastewater projects statewide. The largest share, approximately $23.8 million, will go to the city of Mercedes in Hidalgo County for major wastewater system improvements.
The Mercedes award package includes a $13.9 million loan and $10 million in loan forgiveness through the Clean Water State Revolving Fund. The city will use the loan for planning, design and construction of a wastewater system improvement project. Planned upgrades include a new sludge holding tank, replacing pumps, lift station rehabilitation and development of an asset management plan.
The city has not yet solicited services related to the wastewater system improvements. Construction is scheduled to start in September 2026 and be complete in June 2028.
TWDB additional allocations include $398,000 for Grassland Water Supply Corporation in Lynn County, $3.3 million for Welch Water Supply Corporation in Dawson County and $2.6 million for the City of Dublin for water system improvements.
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