Baja California Sur Governor Víctor Castro Cosío said President Claudia Sheinbaum has committed to restoring nearly 800 million pesos ($44 million USD) in federal funding that had been cut from the state’s infrastructure and social works budget, according to Zeta Tijuana.
Castro made the announcement following Sheinbaum’s recent visit to the state, which included a stop in Ciudad Constitución, the agricultural hub of Comondú municipality about 130 miles north of La Paz. The governor described the visit as productive and called the funding restoration a significant win for BCS development priorities.
During the visit, Sheinbaum outlined a broad package of federal commitments for the state. The centerpiece is the Presa El Novillo dam project in La Paz, carrying an 800 million peso price tag, designed to increase the city’s water supply. La Paz has long struggled with water scarcity, and the dam would boost the volume available to a metropolitan area that has grown rapidly alongside its neighbor Los Cabos.
The president also announced continued rehabilitation of the Transpeninsular Highway, a housing program spanning Los Cabos, La Paz, Comondú, Loreto, and Mulegé, and construction of a new IMSS hospital. Wastewater treatment plants for Los Cabos and Loreto and an aqueduct connecting Santa Rosalía to Palo Verde were also part of the package. For families, Sheinbaum pledged 3,000 pesos ($167 USD) per secondary school student for supplies and uniforms.
The highway rehabilitation matters directly to anyone who drives between La Paz and Cabo San Lucas or north toward Loreto. Stretches of the two-lane Transpeninsular have deteriorated badly in recent years, with potholes and missing shoulders making the drive hazardous after dark.
The budget restoration comes against a backdrop of federal austerity. Sheinbaum’s government has pursued spending cuts in other areas, most recently proposing a 25% reduction in electoral spending as part of a broader reform package. Whether the promised BCS funding survives future rounds of federal belt-tightening remains to be seen, but for now the state government is treating the commitment as firm.

