SpaceX to fund $220 million in Brownsville water projects

Brownsville city commissioners have unanimously voted to de-annex approximately 445 acres of land near the Port of Brownsville in an agreement with SpaceX. In exchange for the removal of this land from city limits, SpaceX has committed to providing up to $220 million to fund critical water and wastewater projects.

The funding structure includes an initial $40 million escrow payment followed by six quarterly payments of $30 million. These funds are designated for two primary initiatives: a wastewater reclamation project capable of providing 8 million gallons per day, and an expansion of the Southmost Regional Water Authority plant, which is expected to increase the water supply by roughly 10 million gallons per day.

SpaceX officials stated the de-annexation was sought because the city was not providing services to the area, suggesting services could be established more economically through the city of Starbase. Brownsville Mayor John Cowen Jr. noted that the investment aims to reduce or eliminate the city's reliance on the Rio Grande River for its water supply.