• San Antonio mayor due to be nominated on Friday • Rising Democratic star tipped as possible 2016 VP pick

This article is more than 6 years old

This article is more than 6 years old

Julián Castro, the Democratic mayor of San Antonio, is expected to be nominated on Friday to join President Barack Obama's cabinet as secretary for housing and urban development (HUD), in a reshuffle forced by the resignation of health secretary Kathleen Sebelius.



Obama is also expected to name the current HUD secretary, Shaun Donovan, to fill the Office of Management and Budget vacancy left by Sylvia Mathews Burwell when she was picked to take over from Sebelius after the troubled launch of federal health-insurance markets.



The reshuffle comes as the White House awaits a report into a second healthcare crisis that may affect the future of another cabinet member, veterans affairs secretary Eric Shinseki, who is grappling with allegations that officials in his department covered-up hospital backlogs.



The appointment of Castro will be most closely watched as an indicator of his rising fortunes in the Democratic party.



The twin brother of US congressman Joaquín Castro, Julián has become one of the best-known US politicians of Mexican descent during his three terms as mayor of San Antonio, Texas.

Sometimes tipped as a possible running mate for Hillary Clinton in the 2016 White House race, he is also seen as having outgrown Texas politics – where, despite demographic changes that may eventually turn the state toward Democratic control – there are currently few opportunities to challenge Republican domination.



As HUD secretary, Castro will be in charge of overseeing the expansion of Obama's “promise zone'” initiative, a federal development programme of which San Antonio was one of the first beneficiaries, in January.



His track record on development may yet provide ammunition for Republican critics, however. A HUD inspector general's report into San Antonio responses to the housing crisis found a failure to hold competitive tenders for contracts awarded during his time in office.



A former lawyer, Castro has made urban redevelopment a theme of his time in San Antonio, one of the fastest-growing US cities.



Obama was due to confirm the nominations in a White House announcement on Friday afternoon. An official, speaking in advance of the public event, praised Castro's record.



“In five short years, Mayor Castro has made significant progress in San Antonio and put the city and its citizens on a new trajectory,” said the official.

The president has paid tribute to Castro's “practical, on-the-ground success”, attributes that are attractive to an administration battling criticism that it lacks managerial capabilities at cabinet level.

