❓WHAT HAPPENED: Colony Ridge, a Texas neighborhood marketed primarily to illegal immigrants, agreed to pay $68 million in penalties as part of a settlement with the Trump administration and the State of Texas.
👤WHO WAS INVOLVED: The Trump administration, Texas Attorney General Ken Paxton, Colony Ridge developers, and the Department of Justice (DOJ).
📍WHEN & WHERE: The settlement was filed in federal court on February 10, 2026. Located just north of Houston, the settlement follows investigations into Colony Ridge’s practices, which were first exposed in 2023.
💬KEY QUOTE: “Colony Ridge endangered American citizens by allowing illegal aliens to run rampant on its streets, in its schools, and in its community. Now, it’s time for those responsible to pay a steep cost for their unlawful actions,” said Texas Attorney General Ken Paxton.
🎯IMPACT: The settlement includes measures to prevent loans to illegal immigrants, boost deportations, and address safety and infrastructure issues in the community.
The infamous Colony Ridge development in Texas has reached a preliminary settlement agreement with the State of Texas an the Trump administration’s Department of Justice (DOJ) over allegations of corrupt business practices, including accusations that the developers marketed explicitly to illegal immigrants. According to the settlement, filed in a federal court in Houston, Texas, on Tuesday, February 10, 2026, the Colony Ridge developers have agreed to pay $68 million, halt new land sales for three years, adhere to strict buy identification and verification requirements, and submit to stricter lending, foreclosure, and advertising rules.
“Colony Ridge endangered American citizens by allowing illegal aliens to run rampant on its streets, in its schools, and in its community. Now, it’s time for those responsible to pay a steep cost for their unlawful actions,” Texas Attorney General Ken Paxton said of the settlement, adding, “My office will continue to bring the full force of the law against anyone who threatens the safety of our state or creates a safe harbor for illegals.”
Most importantly, the proposed settlement—which still requires court clearance but is likely to be approved—will require purchasers to possess a valid Texas-issued identification card or valid immigration documents. This means that Colony Ridge properties can no longer be sold to illegal immigrants, which is how developers previously sought to rapidly expand property sales.
Notably, state and federal prosecutors detailed how Colony Ridge properties were advertised almost exclusively through Spanish-language media, with a strong focus on foreign nationals. This allowed strategy resulted in Colony Ridge becoming the “fastest growing development” in the United States, though the properties were not being sold to U.S. citizens.
In addition, the developers behind Colony Ridge have agreed to pay $68 million as part of the settlement. This includes $48 million earmarked for road, drainage, and flood control maintenance. Another $20 million will be set aside to cover law enforcement costs, including immigration operations. Notably, the Colony Ridge development has been plagued with incidents of crime—often attributed to its large illegal immigrant population.
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