Texas may recover $11B in border security costs under a $12B grant added to Trump’s sweeping tax bill.

Texas Reimbursement Included in Trump’s Reconciliation Package

A last-minute addition to President Donald Trump’s comprehensive tax reform bill could deliver up to $12 billion to states that absorbed the cost of immigration enforcement during the Biden administration—chief among them, Texas.

The measure, pushed by Rep. Michael McCaul, R-Texas, sets up a grant program to reimburse states for border security expenditures. Texas, which launched Operation Lone Star under Governor Greg Abbott, reportedly spent $11.1 billion on personnel, wall construction, and detention facilities in response to federal inaction at the border.

“Texas bore the brunt of the federal mission the last four years and deserves to be reimbursed,” McCaul said. He emphasized that the inclusion of the grant program followed months of negotiations involving Governor Abbott, House Speaker Mike Johnson, R-La., and other Republican leaders.

Though the bill’s language does not mention Texas directly, congressional sources confirmed that the Lone Star State was the primary advocate for the reimbursement clause. The funding allocation came through a “manager’s amendment” added just hours before the final House vote.

McCaul noted the strategic legislative maneuvering behind the amendment: “The way we worked it was strategically very smart. It’s going to the Senate now. And Senator Cornyn is going to take it up, be the champion in the Senate.”

Republican Study Committee Chair August Pfluger, also from Texas, highlighted the scale of the state’s border response. “Texas spent $11.1 billion on border security, including $5.87 billion on personnel costs and $4.75 billion on border wall and barriers,” he said. “When the federal government failed to secure our border and protect our communities, Texans stepped up.”

Speaker Johnson issued a public statement applauding McCaul’s work: “Thanks to Rep. McCaul, states that stepped up to protect Americans in the face of Biden’s border catastrophe will be reimbursed for doing the work the Biden Administration refused to do.”

Rep. Mark Green, R-Tenn., chair of the Homeland Security Committee, added that without federal support, states were “forced to take extraordinary measures” to secure their communities.

Senate Debate to Determine Final Outcome

The grant program is part of a broader reconciliation bill aimed at pushing through Trump’s priorities in tax, immigration, defense, energy, and national debt. The reconciliation process allows the Senate to pass fiscal legislation with a simple majority—bypassing the typical 60-vote threshold and sidelining the Democratic minority.

While passage in the House is a major step, the Senate must approve an identical version of the bill before it reaches President Trump’s desk. McCaul expressed optimism that the provision would remain intact after consultations with the administration.

“I anticipate it will go forward,” he said. “I’m just proud that we were able to get this done. I'm very proud of what my state did to stop the flow of illegals and dangerous actors coming into the country.”

Governor Abbott welcomed the move, stating, “This is a national issue that Texas was proud to address, and we are grateful for the allocation that reduces the financial burden that Texas incurred.”

The outcome in the Senate will determine whether Texas and potentially other states receive long-sought compensation for their border enforcement efforts under the Biden administration.