HARLINGEN, Texas (Border Report) — Construction leaders in the Rio Grande Valley say intensified immigration enforcement is worsening labor shortages and rippling through the regional economy, slowing projects and destabilizing financing for builders across South Texas.
More than 9,000 people were arrested by U.S. Immigration and Customs Enforcement agents in the Rio Grande Valley over the past year, according to industry officials, who say construction workers are increasingly being targeted at active job sites. The arrests come at a time when builders are already struggling to find skilled labor.
The issue was front and center during the latest episode of Border Report Live, where South Texas correspondent Sandra Sanchez spoke with Paul Rodriguez, president and CEO of Valley Land Title Company, about how ICE enforcement actions are affecting construction, lending and development activity in the region.
Rodriguez was among local leaders who attended a symposium Monday hosted by the South Texas Builders Association, where industry representatives gathered to discuss growing concerns about workforce disruptions and financial instability tied to immigration enforcement.
According to Rodriguez, the impacts are already showing up in the financing side of the business.
“Rodriguez says there has been a 30% to 40% drop in home construction loans because of arrests of workers at construction sites.”
He added that the effects can be immediate and severe. A colleague in banking recently shared an example of a project that stalled entirely after enforcement activity.
“He says a banker colleague says one builder reported 18 construction workers picked up on one site that caused construction to come to a halt.”
Industry leaders say these disruptions extend beyond job sites, affecting suppliers, subcontractors and lenders who rely on predictable timelines and steady labor availability to keep projects moving. Delays can quickly cascade into higher costs, missed deadlines and canceled developments.
Rodriguez, who also serves as a board trustee for South Texas College and is chairman of the Community College Association of Texas Trustees, said workforce instability poses long-term risks for regional growth, particularly as construction demand remains strong across South Texas.
The episode also highlighted broader border security developments, including new vehicle barriers being installed in West Texas. The barriers are designed by federal security officials to prevent drivers from bypassing U.S. Border Patrol checkpoints, signaling continued investment in enforcement infrastructure even as local industries warn of economic fallout.
Construction leaders say they are seeking dialogue with policymakers to address labor shortages without further disrupting critical industries that underpin housing supply, commercial development and regional economic stability.
Originally reported by Sandra Sanchez in Border Report.
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