Colonia Fund - Construction (CFC)

The Texas Community Development Block Grant (TxCDBG) Colonia Fund Construction (CFC) Program is a state-administered initiative designed to improve living conditions in eligible colonias—unincorporated communities within 150 miles of the U.S.–Mexico border that lack basic infrastructure. Administered by the Texas Department of Agriculture (TDA), the CFC provides competitive grant funding to counties for critical infrastructure projects. These colonias must have existed before November 28, 1990, and be characterized by severe deficiencies in potable water, sewage systems, and/or safe housing. Communities within metropolitan statistical areas exceeding one million residents are not eligible. The CFC program awards up to $1,000,000 per project annually, with no matching funds required, for projects that primarily benefit low-to-moderate income residents. Eligible activities include water and wastewater improvements, housing rehabilitation, and limited additional improvements such as street paving, drainage, and street lighting, with street lighting projects required to account for 5–15% of the funding in areas where such infrastructure is absent. Engineering and administrative support services are allowable under certain constraints, but funds cannot be used for government buildings, new housing construction, or maintenance. The application process is divided into two phases. Phase 1, the Community Application, is due January 8, 2026, and involves identifying eligible colonia communities, submitting documentation verifying eligibility, and providing a resolution from the local governing body committing to compliance and to use of the funds per program guidelines. TDA will then invite selected communities to submit a full Project Application (Phase 2), which is due April 30, 2026, after a public hearing by February 27, 2026. Applications must be submitted via the TDA-GO grant management system. Scoring for Phase 1 is based on the number of eligible colonia communities identified and the applicant’s previous CFC funding history. Counties with no previous awards receive higher scores. Additional points are awarded based on the number of identified colonias relative to the total in eligible areas. A tie-breaker considers the county’s median household income and unemployment rate. Only counties listed in the Colonia Fund eligibility map and participating in the TxCDBG 2022 Colonia Planning and Needs Assessment are eligible. These counties include, but are not limited to, Hidalgo, Starr, Webb, El Paso, and others noted as eligible in the official map. Specific sub-county areas are sometimes eligible if only parts of the county qualify. For further information, applicants can contact Crystal Vasquez at Crystal.Vasquez@TexasAgriculture.gov. Technical assistance and program updates are made available through the TDA website and webinar sessions.

Applicants should ensure colonias are properly documented with pre-1990 evidence. Adopting the required resolution in advance prevents disqualification.