A dispatch from "Katyzuela"

Summary

Marketplace Morning Report – “A dispatch from ‘Katyzuela’”

Date: February 19, 2026
Host: David Brancaccio
Main Reporter: Elizabeth Troval
Guest Economist: Diane Swonk
Additional Reporting: Nancy Marshall Genzer

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Episode Overview

This episode centers on the evolving relationship between the U.S., Venezuela, and the Houston suburb of Katy, now nicknamed “Katyzuela” due to its large Venezuelan community. The show explores how shifts in U.S. oil policy and immigration enforcement are impacting both international business and the personal lives of Venezuelan Americans, particularly in Texas. Listeners also get updates on the U.S. trade deficit, the influence of AI imports, and changes in American labor union membership.

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Key Discussion Points & Insights

1. Venezuelan Oil & U.S. Policy: The Business Pivot

[00:31 – 03:17]

• Background:

  • As U.S. sanctions on Venezuela relax, refineries like Citgo and Phillips 66 are securing Venezuelan crude directly.
  • The shift follows the U.S. arrest of Venezuela’s leader in January and is accompanied by a crackdown on immigration protections for Venezuelans in the U.S.

• Local Impact in Katy, Texas (“Katyzuela”):

  • Katy has become a hub for Venezuelan immigrants, with a population of about 75,000 Venezuelans in greater Houston.
  • Elizabeth Troval reports from La Pradera Latin Market, illustrating the strong community connections and economic contributions of Venezuelan-Americans.

• Historical Context:

  • The Houston-Venezuela connection began decades ago, with U.S. workers—especially in oil—taking assignments in Venezuela.
  • Archival example:

    “Dear Anne, well, here I am at Lagunillas in the oil fields. The offshore wells run along the edge of Lake Maracaibo for more than 40 miles.”
    — [02:30]

• Expert Insight:

  • Francisco Monaldi (Rice University):

    “I keep finding when I give a speech here people that tell me I lived in Venezuela, I was a petroleum engineer... and now that the US Government wants to develop Venezuela's oil sector, we may start to see this dynamic again.”
    — [02:44]

  • Monaldi points out that U.S. companies are looking to recruit Venezuelans in Texas to return and “serve as sort of guides to going into the country.”
    — [03:08]

• Community Concerns:

  • While some Venezuelan Americans are being eyed for return to help rebuild the oil sector, many, like local shop owner Ladelin Castellanos, fear for their families’ safety and stability.

    “Even if you have an ID, even if you've had a work permit for years... there's no guarantee you won't be detained and deported.”
    — [03:17]

2. U.S. Trade Deficit & the Role of AI Imports

[04:11 – 05:05]

• Data from Commerce Department:

  • The trade deficit widened dramatically in December and hit a record high for 2025.

• Economist Analysis:

  • Diane Swonk (KPMG):

    “Imports of AI inputs to data centers have soared... The administration have given the tech behemoth waivers on AI imports... We don’t produce them in the United States. We import almost all of them.”
    — [04:34]

  • These waivers and the AI “arms race” drive up imports and thus the deficit.

• Markets Update:

  • The Dow is down 0.41%, the S&P down 0.31%, Nasdaq down 0.51%; Crude oil up more than 2% at $66.50.
  • The U.S. builds up air power in the Middle East as Iran nuclear talks continue.
    — [05:05]

3. Labor News: Union Membership Trends

[06:36 – 07:50]

• Update from the Bureau of Labor Statistics:

  • Union membership rose slightly last year, noteworthy amid the Trump administration’s anti-union moves.
  • 10% of U.S. workers belong to a union; unionized full-time workers earned $230 more per week than non-union workers.
  • Black workers hold the highest rate of union membership.
  • Public sector union membership rose considerably (>0.5%).

• Obstacles Under the Trump Administration:

  • Federal efforts included layoffs, limiting the agency that defends union rights, and removing the National Labor Relations Board’s chair, leaving it without a quorum.

• Quote:

  “President Trump fired the chair of the National Labor Relations Board in 2025, leaving the board without a quorum for most of the year. It needs a quorum to consider violations of labor laws.”
  — [07:37]

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Notable Quotes & Memorable Moments

• Elizabeth Troval on "Katyzuela":

  “Castellanos opened her shop in 2019 to cater to a Venezuelan population that has grown to roughly 75,000 people in the Houston metro area. So many of them live in the small suburban city of Katy it’s sometimes called 'Katyzuela.'”
  — [01:11]

• Professor Monaldi on Return Migration:

  “Venezuelans could serve as sort of guides to going into the country.”
  — [03:08]

• Ladelin Castellanos on Deportations:

  “Even if you've had a work permit for years... there's no guarantee you won't be detained and deported.”
  — [03:17]

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Timestamps for Key Segments

• 00:31 – 04:11: U.S.–Venezuela oil relations and the “Katyzuela” community
• 04:11 – 05:05: Trade deficit, AI import surge, and market updates with Diane Swonk
• 06:36 – 07:50: Labor news: Union membership trends amid federal pushback

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Tone & Style

The episode blends brisk economic reporting with human stories. On-the-ground retail scenes in Katy balance with swift, expert economic analysis and pointed policy commentary. The tone is informative, empathetic to immigrant concerns, and grounded in data, mirroring Marketplace’s signature blend of immediacy and narrative insight.

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Summary Takeaway

This Marketplace Morning Report episode captures the intersection of global oil politics, shifting immigration policies, and community resilience among Venezuelan Americans in Texas, against a backdrop of mounting AI-driven trade pressures and evolving labor dynamics nationwide. Listeners come away with both a macroeconomic pulse and a microcosmic human story from “Katyzuela.”

Transcript

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A visit to a Texas suburb that sits at the intersection of oil, immigration and Venezuela. I'm David Brancaccio. More refiners of Gasoline in the U.S. including Citgo and Phillips 66, are moving to buy Venezuelan crude directly from Venezuelan producers. This as the Trump administration has eased the licensing following the US Arrest of Venezuela's leader in early January. Meanwhile, the administration is taking away work permits and visas from many Venezuelans in the US to to pressure people to return to their native country. One place where this is playing out is a Houston suburb. Marketplace's Elizabeth Troval reports from Katy, Texas.

[Lifelock Customer Service Representative]

La Pradera Latin Market, a clean, well lit store inside a dingy strip mall, you can buy Venezuelan coffee, chocolate and cheese. Ladelin Castellanos pulls a soft white cheese out of the fridge along with a container of special cream. Well, she shows me around. One of her regulars stops by. Hola, vien amiga. Adelante Castellanos opened her shop in 2019 to cater to a Venezuelan population that has grown to roughly 75,000 people in the Houston metro area. So many of them live in the small suburban city of Katy it's sometimes called. Katie Suela Castellanos and her husband chose Katy for the good schools and affordable homes. But this recent wave of immigration is not how Houston's relationship with Venezuela started. Before Houston received tens of thousands of Venezuelan immigrants, it was Americans who sought opportunities in Venezuela. In this training video from the 1950s, an American father is assigned to work in Venezuela's oil fields and is writing back home to his wife. Dear Anne, well, here I am at Lagunillas in the oil fields.

[Marketplace Reporter / Narrator]

The offshore wells run along the edge of Lake Maracaibo for more than 40 miles.

[Lifelock Customer Service Representative]

In Houston, Rice University professor Francisco Monaldi, who's from Venezuela, often meets Americans who worked there decades ago.

[Lifelock Narrator / Advertiser]

I keep finding when I give a speech here people that tell me I lived in Venezuela, I was a petroleum

[Lifelock Customer Service Representative]

engineer and now that the US Government wants to develop Venezuela's oil sector. We may start to see this dynamic again. Monaldi says U.S. companies are seeing which Venezuelans in places like Haiti might be interested in going back to Venezuela to work in the oil sector.

[Lifelock Narrator / Advertiser]

They know the culture. They have families there. Venezuelans could serve as sort of guides to going into the country.

[Lifelock Customer Service Representative]

A stint back in Venezuela at a big oil company may be attractive for some. But for Ladelin Castellanos and Katie, she fears returning to Venezuela would endanger her family. Rebuilding the country will take time, and her kids were raised here. But families like hers may not have a choice. The Trump administration has revoked protections and work permits for hundreds of thousands of Venezuelans. She says even if you have an id, even if you've had a work permit for years, even if you've followed immigration laws, there's no guarantee you won't be detained and deported. In Katy, Texas, I'm Elizabeth Troval for Marketplace.

[Marketplace Reporter / Narrator]

Now to news today from the Commerce Department on the US Trade deficit, which widened in December, ballooning by nearly a third. The gap for all of 2025 was the biggest on record. Now, that's not the intention of our leaders, but there it is. Some of it had to do with, like everything else, artificial intelligence. Let's check in with Diane Swonk, chief economist at the audit, tax and advisory firm kpmg.

[Diane Swonk]

What we're seeing is imports of AI inputs to data centers have soared. And part of that is to1, the AI arms race and the fact that the administration have given the tech behemoth waivers on AI imports. The inputs, we don't produce them in the United States. We import almost all of them. And as a result, in order to compete in the arms race, they had to give tariff waivers for the tech companies to build up their data centers, which is what we're seeing going on.

[Marketplace Reporter / Narrator]

KPMG chief economist Diane Swonk there will get the index of leading economic indicators in just a few minutes. Stock market, The Dow is down 211 points, 4 10%. The S&P is down 3. 10%. The Nasdaq is down 5. 10 of a percent. Crude oil is up more than 2% now, 6,650. In New York, this with the biggest U.S. buildup of air power in the Middle east since the Gulf War as US Iran nuclear talks continue.

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Union membership in America rose last year just slightly, but any increase is newsworthy. This even as the Trump administration was firing unionized federal workers and curbing federal agency for protecting the rights of people to organize and join unions. Marketplace's Nancy Marshall Genzer has more.

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The Bureau of Labor Statistics says 10% of U.S. workers were in a union last year and full time unionized workers made $230 more a week than non union employees. Black workers continued to have the highest rate of union membership. Union membership among public sector government workers was more than five times higher than the rate for employees in the private sector, according to the BLS and the agency. The public sector union membership rate increased by more than half a percentage point last year. The left leaning Economic Policy Institute says federal workers are turning to unions amid the Trump administration's layoffs. It says an additional 40,000 federal employees joined a union last year. President Trump fired the chair of the National labor relations board in 2025, leaving the board without a quorum for most of the year. It needs a quorum to consider violations of labor laws. I'm Nancy Marshall Genser for for Marketplace.

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