While SCR 13 does not impose direct costs on the state budget, it carries significant indirect fiscal implications for Texas, particularly in the Rio Grande Valley's agricultural sector and municipal water supply systems. If successful in prompting federal action or improved compliance from Mexico, the resolution could help mitigate economic losses due to water shortages, leading to long-term financial benefits for the state.

One major area of impact is agriculture, where reliable access to Rio Grande water is crucial for crop production. Over the past decade, Mexico's failure to deliver its treaty-obligated water has contributed to crop failures, reduced planting acreage, and economic instability in farming communities. If Mexico adheres to its obligations, Texas farmers could experience higher crop yields, which would translate into increased sales tax revenue and job stability in rural areas. A more predictable water supply would also reduce the risk of business closures in agriculture-dependent industries, such as food processing and transportation.

Additionally, Texas has previously allocated state funds for emergency drought relief programs when treaty noncompliance has exacerbated water shortages. If SCR 13 leads to improved enforcement of the 1944 treaty, Texas could reduce its need for costly state-funded drought relief efforts. This could free up public funds for other infrastructure or economic development initiatives. Moreover, municipalities that depend on Rio Grande water—such as those in the Lower Rio Grande Valley—could avoid increased water treatment costs, emergency rationing measures, and potential infrastructure overhauls required to supplement dwindling water supplies.

Beyond agriculture and municipal needs, ensuring treaty compliance would bolster economic stability across multiple sectors, including real estate, manufacturing, and local businesses that rely on a steady water supply. A more predictable water flow would help sustain housing development and commercial expansion, preventing economic stagnation in water-stressed areas. While Texas may need to engage in ongoing lobbying efforts at the federal level to push for enforcement, the potential economic gains far outweigh these minimal advocacy costs.

In summary, SCR 13 has the potential to protect Texas’s economic interests, prevent future emergency expenditures, and create long-term fiscal stability by addressing a persistent water security issue. If successful, it could relieve financial pressure on farmers, businesses, and local governments while enhancing state tax revenues through economic recovery in affected regions.

SCR 13 urges the U.S. Department of State and the International Boundary and Water Commission to enforce Mexico’s compliance with the 1944 Water Treaty, which governs shared water resources between the two nations. The resolution highlights that Mexico is 984,814 acre-feet behind in its required water deliveries, a violation that has significantly harmed Texas's agriculture, industry, and municipal water supply. Given the importance of Rio Grande water to millions of Texans and hundreds of thousands of irrigated acres, this resolution is a necessary step in advocating for Texas's economic and environmental stability.

The resolution aligns with core liberty principles, particularly private property rights and free enterprise, by advocating for a predictable water supply essential to Texas landowners, farmers, and businesses. Without these water deliveries, economic disruptions have already resulted in reduced crop production, closed businesses (including Texas's only sugar mill), and increased water costs for rural municipalities. By urging federal enforcement of the treaty, the resolution supports limited government intervention aimed at ensuring compliance with existing agreements rather than creating new regulatory burdens​.

While there are no direct fiscal costs to the state, there are significant potential financial benefits, including avoiding state-funded emergency drought relief efforts and preventing economic losses in agriculture and water-dependent industries. Ensuring treaty compliance would help preserve jobs, stabilize tax revenues, and prevent further economic decline in water-stressed regions. Given these factors, Texas Policy Research recommends that lawmakers vote YES on SCR 13 as it is a logical and necessary step to protect Texas’s economic and environmental interests.