State Border Security Reinforcement Fund: Introduction
In 2025 July 3rd Congress passed a wide reaching budget reconciliation bill which sets the stage for a large financial reward for states that have been the primary bearers of border security costs during the Biden administration.
At the core of the legislation is the creation of the “State Border Security Reinforcement Fund” which puts aside $10 billion in grants for states that put in into border barriers and out other security measures since January 20, 2021 the day President Joe Biden took office. Although the bill does not include Texas by name it is very much the case that the Lone Star State will benefit the most out of any other state given its great spend on border security in recent years.
State Border Security Reinforcement Fund: Texas’ Lobbying Efforts
Texas Governor Greg Abbott along with Republican Senators Ted Cruz and John Cornyn were key in pushing for the reimbursement provision. Abbott which is a critic of the Biden admin’s border policies has also brought up the issue of Texas’ financial burden. In a response to the House’s initial passage of the bill Abbott reported that under Operation Lone Star Texas put out over $11 billion of tax payer money for border security and also this year we asked Congress to fully reimburse us for those costs.
State Border Security Reinforcement Fund: Operation Lone Star – Texas’ Great Investment
Operation in March 2021 we saw the launch of what is to date the most aggressive state run border security program in U.S. history. Over four years Texas has put in over $11.6 billion into this which saw the deployment of thousands of National Guard to the area, we saw the construction of barriers and also very controversial measures which included the use of floating buoys in the Rio Grande. Also included in this operation was the large scale busing of over 100 thousand migrants to urban areas which are mostly run by Democratic mayors.
State Border Security Reinforcement Fund: Structure and Eligibility
The at large fund which we have put in to the Department of Homeland Security is for states’ reimbursement of a wide range of border security expenses which took place as of January 20, 2021. Which include:.
Construction and installation of border fences, also including buoys.
• Ground preparation for border infrastructure
Surveillance and collection of information to prevent entry violations.
Movement of migrants out of small population centers to other areas within the U.S.56.
States, state agencies (which include National Guard units) and local governments may apply for grants if they present proof of qualified expenses. The fund will remain available through September 30, 2034, but in 202956 unobligated funds will be returned to the U.S. Treasury.
State Border Security Reinforcement Fund: Texas as Main Beneficiary
While the fund is for all states to use Texas is by far the largest in terms of spending on border security during the Biden years. According to state reports Texas’ spending is by far the highest of any other state with Arizona the only other large player. Arizona did see some of its projects through which included the put together of a border barrier with shipping containers under former Governor Doug Ducey’s term but in the end legal challenges put a stop to those and the total ask for reimbursement from that program is over $500 million which is also a fraction of what Texas spent.
State Border Security Reinforcement Fund: The Federal‑State Border Security Divide
The State Border Security Reinforcement Fund was put in place as a result of the on going issue of which which border security responsibilities fall to the federal government and which to the individual states. Texas officials report that it was the Biden administration’s policies which brought about a large scale increase in migrant encounters over 2 million a year according to Border Patrol reports which in turn caused the state to take action where they felt the federal government did not do enough.
State Border Security Reinforcement Fund: The BIDEN Fund
In also includes in the budget bill the $10 billion set aside for border security and on top of that the BIDEN Fund at $3.5 billion. The goal of this fund is to support states’ efforts with the federal government in immigration enforcement and which in turn promotes more state and federal partnership in border issues2.
State Border Security Reinforcement Fund: How the Reimbursement Process Works
States that wish to be reimbursed must put forth in detail to the Department of Homeland Security their expenditures. The Secretary of Homeland Security is to issue grants for which the project is either complete, still in progress, or a new venture that meets the fund’s rules. This process is put in place to determine that only indeed legitimate and documented expenses are covered and that the money is used as intended 56.
State Border Security Reinforcement Fund: Political Implications
The issue of reimbursement is a large win for Texas Republicans which for some time have been of the view that their state should not bear the financial burden of what they term a national crisis. Governor Abbott’s team has not reported how much Texas will ask for in terms of reimbursement but with the size of Operation Lone Star we are talking maybe of billions of dollars234.
State Border Security Reinforcement Fund: Criticism and Controversy
Critics of Operation Lone Star and in like programs put forth that we see little to no results from the large amounts of money put out on these issues. Also we see the issue of which states should be putting forth funds for what is mainly a federal issue, and also the human element of policies like the busing of migrants to far off cities.
State Border Security Reinforcement Fund: Conclusion
A huge windfall for the state which put up the most money to secure the South Border of the U.S. 2534.
References
- Congressional Budget Office. “Budget Reconciliation Bill Summary,” July 3 2025.
- Office of Governor Greg Abbott. “Operation Lone Star Funding Overview,” 2025.
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