Trump backs federal funding for Corpus Christi's seawater desalination project

Bloomberg News

President Donald Trump threw his support behind "a big ask" for federal funding for a Corpus Christi seawater desalination project aimed at boosting dwindling water supplies that have raised credit concerns.

Trump said, "we're going to take care of it," in a local TV interview during his Friday visit to the Texas city.

"I have to say it's a big ask. This is called a serious money ask, and I'm going to get that thing approved for you guys," he told KIII TV news.

Corpus Christi is revisiting an inner harbor seawater desalination project with a new design-build team after estimated costs escalated to about $1.3 billion under a previous team. The current project, which carries a preliminary price tag of $978.77 million, is one of several steps the city is taking to meet water demand from residents and industries, including oil refineries.

Mayor Paulette Guajardo said Trump's remarks are encouraging. 

"Prior to his visit, we coordinated with Congressman Michael Cloud who, with the support of our senators, requested significant federal investment to advance our Inner Harbor desalination project," she said in a statement. "The president's reference to a 'big money ask' aligns with the level of federal partnership we have been pursuing for some time now, to secure our region's long-term water supply."

The amount of federal funding being sought for the project was not immediately available. 

Corpus Christi Water, the primary water supplier for a seven-county region, is experiencing stage three drought conditions that triggered water-use restrictions. A level 1 water emergency, indicating the system is 180 days from supply not meeting demand, is projected for November. A water supply dashboard on the city's website shows two western reservoirs being depleted during the first half of 2027.

"The consequences of our water crisis are far-reaching and we must share the responsibility for funding a project of this magnitude," City Manager Peter Zanoni said in a statement. "This federal funding is vital to ensuring we have a sustainable water supply without placing an undue financial burden on our local families and businesses."

The potential for federal funding comes as some city council members have raised concerns over the amount of debt Corpus Christi could amass from its hunt for water. 

In addition to seawater desalination, the city has been lining up projects to boost water supplies in the nearer term, with the council passing a resolution in February signaling its intention to issue up to $410 million of water revenue bonds in the future to reimburse cash-on-hand expenditures for projects to treat brackish water and tap groundwater.

The city was hit in December with downgrades and negative outlooks by Moody's Ratings, which pointed to accelerated water depletion risk and a narrow timeframe to implement solutions before supply fails to meet demand.

In October, Fitch Ratings and S&P Global Ratings revised their outlooks on Corpus Christi's utility system revenue bonds to negative from stable, signaling concerns over the city's ability to boost its water supply.