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Cameron County approves 95% tax break for proposed AI shipbuilding project

Cameron County approves 95% tax break for proposed AI shipbuilding project
5 hours 50 minutes 2 seconds ago Tuesday, June 16 2026 Jun 16, 2026 June 16, 2026 4:48 PM June 16, 2026 in News - Local
Source: KRGV

Cameron County commissioners unanimously approved a 95% tax break for Saronic Technologies, a shipbuilding company planning to build military and commercial ships at the Port of Brownsville.

The vote took place Tuesday, with all commissioners present voting in favor. Two commissioners were not present for the vote.

As previously reported, Saronic Technologies is looking at the port as a possible site for a new shipyard. The company focuses on creating AI-driven, autonomous surface vessels, or self-directed ships, for possible naval warfare.

The company is also considering a location in Virginia.

County commissioners previously tabled a decision on the tax abatement.

The tax break covers 10 years. The county's agreements with Saronic Technologies are valued at approximately $211 million over the four phases of the project beginning in 2029.

The agreements are based on the number of new jobs created. Greater Brownsville EDC also offered Saronic a $10 million incentive for 2026.

The company's proposed Port Alpha Shipyard project is expected to create 10,000 permanent jobs within the first 10 years of operation.

The incentive drew passionate responses from both supporters and opponents at the commissioners court meeting.

Supporter Herendida Martinez welcomed the vote.

"It's giving an opportunity and it's transforming our region once again," Martinez said.

Dr. Christopher Basaldu spoke against the tax break. He believes Saronic will not help the Rio Grande Valley and said the project will instead take away from the Valley's identity.

"I think it's immoral, and what we want to tell them is we should tell everyone in the Valley to boycott this company. Don't work for them, don't serve them, kick them out," Basaldu said.

Cameron County Judge Eddie Treviño Jr. defended the court's decision.

"It's unfair to believe that the court is acting in any way other than they think this is what's in the best interest, both in the short and long term for the residents of Cameron County," Treviño said.

In a statement issued after the meeting, Treviño said the vote marks a significant effort by Cameron County to land a company that will transform the economic landscape in South Texas for generations.

The county expects Saronic to follow all state and federal regulations and to keep its investment and job promises. If the company does not, the tax break could be reduced.

Watch the video above for the full story.

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