States Cash In: How the New Budget Bill Pays Big for Border Security

In a move that’s set political circles buzzing from Austin to Washington, the new federal budget reconciliation bill quietly approved a $13.5 billion payout for states that shouldered the cost of border security during President Biden’s administration. At the heart of this hefty line item is Texas — the clear front-runner in claiming the lion’s share of the cash. Under Governor Greg Abbott’s signature Operation Lone Star, the Lone Star State poured more than $11 billion of taxpayer money into border security initiatives over the past three years. Now, thanks to aggressive lobbying by Abbott and Texas Senators Ted Cruz and John Cornyn, the federal government appears poised to foot part of the bill.

A BP Agent looks out a water drain tunnel that runs from Mexico into Nogales, AZ.

The bill doesn’t name Texas outright. Instead, it establishes a $10 billion State Border Security Reinforcement Fund, allowing any state to apply for reimbursement of expenses related to border security since January 20, 2021 — the day President Biden took office. In practice, however, few states spent even a fraction of what Texas did.

Arizona might get a slice too: Former Governor Doug Ducey’s short-lived shipping container wall and related efforts racked up around $513 million. But legal disputes forced Arizona to dismantle its makeshift barrier, and current Democratic Governor Katie Hobbs has already asked Washington for repayment.

“This provision just says ‘states can apply.’ But what states really spent this money? Texas and Arizona — that’s about it,” said Adam Isacson, a border security expert with the Washington Office on Latin America.

Launched as a pointed rebuke to the Biden administration’s immigration policies, Operation Lone Star saw thousands of Texas National Guard troops stationed at the border, controversial floating barriers installed in the Rio Grande, and more than 100,000 migrants bused to Democrat-led cities far from the border — a move that ignited fierce political debate nationwide.

Abbott has remained a vocal critic of Biden’s handling of record-breaking migrant encounters at the southern border, which topped 2 million per year during his presidency. When the House first advanced the budget bill this spring, Abbott celebrated the reimbursement language as a win for Texas taxpayers.

Whether Texas will see its full $11 billion back remains unclear. Abbott’s office declined to specify exactly how much the state will request but confirmed the governor plans to leverage the new funds fully.

The budget bill also carves out an extra $3.5 billion under a fund tellingly titled BIDEN — short for Bridging Immigration-related Deficits Experienced Nationwide. This pot of money is open to any state that has helped federal immigration enforcement efforts, further sweetening the deal for border states straining under the weight of federal inaction.

The payout is fueling fresh debate over the costs and politics of border security. Supporters say it’s overdue relief for states forced to pick up Washington’s slack. Critics argue it’s a taxpayer-funded reward for partisan stunts — like Texas’s busing program — that did little to solve underlying immigration challenges.

Regardless of which side of the political divide you’re on, one thing’s clear: for Texas, this is a big win — and a big check — that could reshape how states approach border security for years to come.