Hidalgo state governance and fiscal developments

Under the administration of Governor Julio Menchaca Salazar, the state of Hidalgo has seen significant growth in its Federal Participation Fund (FGP) resources, recording an 8% increase in the second half of 2026. This represents a 40% rise in FGP resources since the start of the current administration, driven by a 96% surge in local revenues between 2021 and 2025 and increased payroll tax collections.

In his fourth government report delivered in Pachuca, Menchaca highlighted Hidalgo’s position as a leader in national economic growth, noting the attraction of 130 projects totaling over 147 billion pesos and the creation of 191,000 jobs. He also reported a 42 percent reduction in inherited public debt. To support regional mobility, the administration announced major infrastructure investments, including a 900 million peso expansion of the Actopan-Atotonilco el Grande axis, 2 billion pesos for new roads in Pachuca, and a 3.2 billion peso expansion of the Pachuca-Mexico federal highway.

Social and security initiatives continue to expand. The budget for social programs rose from 1.061 billion pesos in 2022 to over 4.9 billion pesos in 2026, which the administration claims helped more than 154,000 residents exit poverty. Recent efforts include the distribution of hearing aids to 1,782 residents through a 18.4 million peso investment and the provision of free psychological and nutritional support for youth via Inhjuve. During the report presentation, citizens from sectors such as transport and agriculture raised concerns regarding infrastructure, drought, and continued access to social programs.