Sign up for TPR Today, Texas Public Radio's newsletter that brings our top stories to your inbox each morning.
Mexican President Claudia Sheinbaum welcomed the election of Gina Hinojosa in Texas and Xavier Becerra in California, highlighting their Mexican roots as the two Democrats prepare to govern states deeply connected to Mexico’s economy and families.
“I would like to highlight the victory of two people of Mexican origin,” Sheinbaum said Nov. 4. Without naming either governor-elect, Sheinbaum emphasized their family connections to Mexico and celebrated the recognition of Mexican Americans in U.S. politics. She stopped short of predicting whether the election results would ease tensions with Washington, saying discussions with the Trump administration would continue.
Their victories put new administrations at the center of relationships that shape household incomes, manufacturing jobs and water supplies on both sides of the border.
Families and the money sent home
About 12.7 million people of Mexican origin live in California and 9.5 million in Texas, according to American Community Survey estimates compiled by Neilsberg. That includes immigrants and U.S.-born residents; Mexican ancestry does not necessarily mean dual citizenship.
For many families, the connection is financial. Mexico received $61.8 billion in remittances in 2025, down from a record $64.7 billion the previous year — its first annual decline since 2013.
About 1.5 million Mexican households report receiving remittances, which average roughly 30% of those households’ income, according to BBVA Research. California and Texas account for close to half the money sent home.
Economists have pointed to slower U.S. hiring, fewer new migrants and fears of deportation as pressures on that flow. The stakes extend from workers’ paychecks in Texas and California to the Mexican families relying on their support.
A shared economy and river
Texas and Mexico exchanged $301.8 billion in goods in 2025, according to the Texas governor’s economic development office. Mexico is the largest export market for both Texas and California.
Manufacturers on both sides produce goods together, connecting Mexican factories with Texas suppliers, trucking companies, warehouses and customers. For binational families and border residents, those connections also include commuting, school, shopping and visits with relatives.
The U.S.-Mexico-Canada Agreement helps underpin that economy. The pact remains in force despite not being renewed at its July review, leaving its future consequential for businesses and workers across the region.
Water creates another source of interdependence — and tension. Under the 1944 treaty, Mexico must deliver water from designated Mexican tributaries into the Rio Grande averaging at least 350,000 acre-feet annually over five-year cycles.
Those deliveries support Texas farms, cities and industry. Mexico must also meet demands for drinking water and irrigation within its own territory, making delivery decisions politically sensitive on both sides.
What changes in Austin
Trade agreements, immigration law and water treaties remain federal responsibilities. But a governor controls state resources and can influence how Texas approaches its relationship with Mexico.
Hinojosa has called for a review of Operation Lone Star and criticized state police cooperation with Immigration and Customs Enforcement, the Texas Tribune reported.
When she takes office in January, her decisions about border enforcement and state spending will reach communities whose families and livelihoods span both countries.
