A bill to condition of receipt certain State revolving funds on the restriction of development or construction of new colonia and colonia structures along the border between the United States and Mexico.

Prohibits specified Federal water pollution or drinking water capitalization grants for a State that has not required each of its county and municipal governments in the United States-Mexico border to enforce rules that prohibit development or construction of any new colonia that lacks water, wastewater, or other necessary infrastructure.

Defines "colonia"as an identifiable community: (1) located in the United States-Mexico border region (excluding certain metropolitan statistical areas) in Arizona, California, New Mexico, or Texas; (2) recognized as such prior to enactment of this Act; and (3) lacking water, sewage, and housing infrastructure.