This bill addresses a long-standing problem for farmers in South Texas: Mexico isn't reliably delivering water promised under a 1944 treaty. The treaty requires Mexico to send at least 350,000 acre-feet of water annually to the United States from the Rio Grande River, but Mexico has been falling short—sometimes relying on unpredictable storm events instead of steady deliveries. This uncertainty makes it nearly impossible for American farmers to plan their crops and operations.

The bill creates two main solutions. First, it establishes a system to track water deliveries and impose trade duties on Mexican goods when Mexico falls short on its water obligations. These duties would start 90 days after a shortfall is confirmed and would continue until Mexico catches up on all owed water. The duties would focus on Mexican agricultural products and goods from areas that use water from the Rio Grande, putting economic pressure on Mexico to comply. If shortfalls continue year after year, the duties would increase.

Second, the bill creates a compensation fund for South Texas farmers who lose money because of water shortages. Money collected from the trade duties goes into this fund, which the Department of Agriculture uses to pay farmers for their actual economic losses. The compensation accounts not just for lost crops, but also for increased costs of finding alternative water sources and the ripple effects on related businesses and jobs. The bill also requires monthly public reporting on water deliveries and compensation payments so everyone can track what's happening.