Soon-to-be former Homeland Security Secretary Kristi Noem approved about $1.04 billion in border wall contracts for Texas builder SLSCO Ltd. This firm was previously accused in a whistleblower case of using smuggled Mexican security guards at federal wall construction sites, according to federal contract announcements and earlier court filings.
The two SLSCO contracts were part of a larger $3.3 billion package of “Smart Wall” contracts announced for Texas and Arizona. One contract, worth $372.8 million, covers about 22 miles of primary wall and 13 miles of detection technology in the Del Rio Sector. The second contract, worth $664.8 million, covers about 41 miles of primary wall in the Laredo Sector. Together, these awards total just over $1 billion.
The contract decisions gained attention because SLSCO was mentioned in a 2020 whistleblower complaint. This complaint accused the company and a subcontractor of bringing armed Mexican nationals into the U.S. to guard border wall sites in California during the first Trump administration.
Business Insider reported, referencing the unsealed filing, that the complaint also alleged the companies had overbilled the government and made false statements. The claims were part of court records and could not be independently verified.
🚨 Republican Senator Kennedy just went after Kristi Noem for spending $220 million in taxpayer money on commercials featuring herself.
Her response: “It would be helpful to know how effective it has been.”
Kennedy: “They were effective in your name recognition.”
A quarter… pic.twitter.com/IaN3aOfq1W
— Brian Allen (@allenanalysis) March 4, 2026
According to the same report, the Justice Department chose not to intervene in the case. Subsequent reports from the Houston Chronicle, Texas Observer, and San Antonio Express-News indicated that the lawsuit was ultimately dismissed.
Federal officials have continued to use SLSCO for major wall projects despite this history. In late 2025, U.S. Customs and Border Protection announced that SLSCO had also won the Del Rio 3 and Laredo 2 wall projects as part of the administration’s effort to expand border infrastructure using funds from President Donald Trump’s domestic policy law. The projects include steel bollard barriers, roads, cameras, lighting, detection technology, and, in some areas, waterborne barriers.
“Securing our border is key to protecting our country, keeping our communities safe, and ensuring our immigration system works as it should,” CBP Commissioner Rodney Scott said in the contract announcement reported by Construction Equipment Guide.
wow — JD Vance tosses Kristi Noem under the bus
“We recognized, frankly, that we needed the new leadership to hasten the delivery of resources to the people of North Carolina … we think it’s useful to have somebody come in and focus on some of this disaster relief and… pic.twitter.com/O9XjHxSOJb
— Aaron Rupar (@atrupar) March 13, 2026
In South Texas, local reactions to the Laredo work were mixed. Laredo Mayor Victor Trevino stated city officials were still discussing plans with DHS. Meanwhile, U.S. Rep. Henry Cuellar reiterated his opposition to using walls as the main border strategy. Cuellar emphasized that his focus remained on staffing, overtime, and technology to combat trafficking and human smuggling.
The new wall awards were announced just days after Trump said Noem would be replaced as homeland security secretary. Reuters reported on March 5 that Trump had not approved a $220 million border-security ad campaign featuring Noem, a program that had faced bipartisan criticism during congressional hearings.
Neither DHS nor the White House immediately responded to media requests for comments regarding the latest SLSCO awards. However, the department’s recent push for contracts shows the administration is moving forward with new wall construction, even amid questions about some of the contractors receiving this work.
