The Rio Grande Valley is losing more jobs than any other part of Texas. That is what a new report found. Deportations are the reason. Builders in the Valley lost 5% of their jobs in the third quarter of 2025. That is the biggest drop the region has ever seen.
The report comes from a group called America's Voice. This group pushes for immigrant-friendly laws. Its report is called "End the Ice Tax." The report says deportations are quietly raising prices. It says deportations are also killing jobs. The group has a name for this hidden cost. They call it the "ICE tax." Builders in the Valley say they feel it every day.
The numbers are big. ICE arrested more than 9,100 people in the Valley. That happened during the deportation surge. That is almost one out of every five ICE arrests in all of Texas. Some cities got hit even harder. In Laredo, ICE used to arrest about six people a month. During the surge, that number jumped. It went up to more than 800 arrests a month, the report says.
"Business is down significantly," said Ronnie Cavazos. He is board president of the South Texas Builders Association. "If we continue on this trajectory, we will see a lot of businesses fail."
This problem goes past the job site. When workers disappear, prices go up for everyone. The report checked prices on goods that need a lot of immigrant labor. Prices went up 2.6% across the country in the year ending in June 2026. That is for normal goods, not food or gas. But lettuce jumped 32.1%. Canned fruit rose 7.9%. Fresh citrus rose 6.3%. Apples rose 7.1%. Whole milk rose 9%. Home health care rose 10.7%. Yard work rose 10.8%.
The report ties the worker shortage to home prices too. Places that use a lot of immigrant workers now have fewer building permits. They have fewer jobs. Their new homes cost more. Places that use fewer immigrant workers are still growing.
America's Voice put it plainly. "That decision isn't theoretical," the group said. "It shows up at every kitchen table in the country, including the tables of families who've never thought twice about immigration. We call it the ICE tax. It's the additional cost you pay when your government picks mass deportation over your wallet, higher prices at checkout, jobs that stall out because workers are gone, and Main Street businesses sitting quiet after a raid comes through."
Other states feel this too. California, Florida, Nevada, New Jersey and New York use the most immigrant workers. The report says those states feel the same squeeze. Groceries cost more there too. So does daycare. So does home building. Texas feels it too, including the Valley.
Benigno Melendez leads a committee for the South Texas Builders Association. He owns a company called BM3 Construction. It is based in Weslaco. He says this fight has gone on for over a year and a half. It started when President Trump's second term began.
"It's been tough economically and, how can I put it, humanity-wise," Melendez said. "So, on both sides, it's affecting us. It's tough moments for us right now."
Melendez says the pain does not stop at the job site. When builders slow down, they buy less lumber. They buy less gas. They eat out less. "We have to keep in mind that we go out and buy stuff in the stores," he said. "In the lumber stores, we go to Stripes, we buy gas, we buy food in the restaurants, we go to Walmart, you know what I mean? Eventually, everyone is going to feel the effect, the negative effect."
Some people say builders should just pay more. Then citizens would take the jobs, they say. Melendez pushed back on that idea. He said construction jobs already start at $15 an hour. That is close to what local government jobs pay. Still, not many citizens want the work. Melendez says the work is just too hard.
"If you have the opportunity to work in something better, in better conditions, you're going to take it, and I don't blame you," Melendez said. "But we need someone to do it. We already have those people that are willing to sacrifice. Let them work."
Melendez has an idea to fix this fast. Give workers permits instead of arresting them, he said. He does not think that will happen soon. He does not expect it before the November elections.
He said this story is bigger than dollars. "It's also separating a lot of families," Melendez said. "It's not only about the money. I know that's all we hear on the news: money, money, money. But, more than that, more important than that, what about the dignity of the community?"
