Sheinbaum Shifts Budget Priorities: Migration and Rail Over Tren Maya

In the first months of Claudia Sheinbaum’s administration, a dramatic shift in Mexico’s federal budget priorities has emerged. The government has significantly increased funding for migration infrastructure, raising the Instituto Nacional de Migración (INM) budget by 489% while cutting funding for the Tren Maya, the National Guard, and other major projects from the previous administration.

According to reports from Mexico’s Secretaría de Hacienda y Crédito Público (SHCP), these budget reallocations reflect new priorities in governance, with a focus on migration management, repatriation programs, and expanding rail infrastructure beyond the Tren Maya project.

Migration Funding Surges Amid U.S. Tensions

As tensions between Mexico and the United States over border security and migration policy continue, Sheinbaum has made it clear that supporting migrants and repatriated nationals is a top priority.

• The INM budget increased from $1.89 billion to $11.17 billion pesos in 2024.
• The Mexican Refugee Assistance Commission (Comar) saw a 110.1% budget increase, rising from $51 million to $107 million pesos.
• A new initiative, “México te Abraza”, was launched to support repatriated nationals, including 10 migrant support centers across six border states, with capacity for 2,500 people each.
• The government allocated $179 million pesos to provide meals for migrants held in detention centers or assisted by humanitarian groups.

The increased migration funding is being used to improve border security, expand humanitarian services, and streamline documentation processes for those returning to Mexico.

The Tren Maya Budget Faces Major Cuts

One of the most controversial shifts in Sheinbaum’s budget strategy has been the steep reduction in funding for the Tren Maya, one of former President Andrés Manuel López Obrador’s signature infrastructure projects.

• Originally allocated $125.9 billion pesos, the Tren Maya ended 2024 with only $36.9 billion pesos, a 70.7% cut.
• The Grupo Aeroportuario, Ferroviario, de Servicios Auxiliares y Conexos Olmeca-Maya-Mexica, which oversees the Felipe Ángeles International Airport, also faced a 55.5% funding reduction, from $15.1 billion to $6.7 billion pesos.

While Sheinbaum has committed to completing the Tren Maya, the drastic budget cuts suggest a shift away from large-scale tourism projects in favor of economic and social policies.

Rail Infrastructure Gains Support

Despite reductions to the Tren Maya, Sheinbaum has increased funding for other railway projects, most notably the Isthmus of Tehuantepec Rail Corridor.

• The Isthmus of Tehuantepec project saw a 703.5% budget increase, rising from $3.9 billion to $31.5 billion pesos.
• This railway aims to boost trade and economic development in southern Mexico, creating a major shipping corridor between the Pacific and the Gulf of Mexico.

This budget shift signals a strategic investment in logistics and trade, positioning Mexico as a key transportation hub for international commerce.

Cuts to Security and Human Rights Programs

While migration services and rail projects received major funding boosts, several other key areas faced severe budget reductions, including:

• The National Guard budget was cut by 50.4%, dropping from $70.7 billion to $35 billion pesos.
• The National Search Commission for Disappeared Persons lost 21% of its budget, dropping to $907 million pesos.

These cuts raise concerns about Mexico’s ability to address human rights issues, particularly as disappearances remain a major social crisis.

A Shift in Mexico’s Economic and Social Priorities

Sheinbaum’s first months in office have set a clear tone for her administration:

• Migration and border support programs are a top priority.
• Rail infrastructure investments are shifting away from tourism projects to commercial trade routes.
• Security funding is being reduced as governance strategies evolve.

While these budgetary decisions reflect Mexico’s changing political landscape, their long-term effects on the economy, infrastructure, and international relations remain to be seen.

As Sheinbaum’s policies continue to unfold, investors, policymakers, and citizens will be closely watching how these financial shifts impact Mexico’s economic future.