Goleta, California — President Donald Trump on Tuesday is expected to give a $2 billion loan to a Texas drought-relief project that was stalled for years before Trump came to power.
Trump will sign an executive order Wednesday, giving the Texas Water Development Authority $2 million to help fund the project that is in its infancy, said Texas Attorney General Ken Paxton, who was in the White House for the signing ceremony.
The president will also give $500 million for the development of the state’s third drought-resistant reservoir, Paxton said.
The loan is contingent on the water authority meeting a $10 million-a-year loan guarantee guarantee requirement, Paeson said.
Trump has not indicated whether he will accept that guarantee, and a spokesperson for the Federal Reserve said it would consider the project, which is part of the Texas Aqueduct, as a priority.
The $2-billion loan would go toward the development and operation of a new reservoir on the aqueduct.
The reservoir is expected be operational by 2020.
The water authority has been working to secure a loan guarantee from the Federal Emergency Management Agency, which has provided a $15-million annual grant.
The water authority needs to meet the loan guarantee requirement by June 30 to receive the loan, Paesons office said.
Trump has been criticized for failing to do more to combat the drought in Texas.
The drought has been one of the most critical challenges facing the United States, but Trump has faced widespread criticism over his handling of the situation.
The government agency that handles emergency loans has repeatedly been criticized by lawmakers and Democrats for not doing enough to help the state.
The Trump administration has proposed reducing the amount of water it must provide to the state by $150 million and has been pressing for the elimination of the federal emergency supplemental water program, known as FEMA, which provides water to millions of people in states where severe drought has struck.
Trump’s office did not immediately respond to a request for comment.