Castro said he would make an announcement about his plans on January 12 in Texas.
Castro's decision to form an exploratory committee, which is often seen as a formality before starting a presidential campaign and allows him to start raising money, gives him a jumpstart in what's expected to be a crowded Democratic field, which already consists of two declared candidates -- Rep. John Delaney of Maryland and Richard Ojeda, a former congressional candidate in West Virginia who lost his 2018 bid.
"As a kid growing up on the west side of San Antonio, I never thought that I'd one day be making this announcement," the former San Antonio mayor tweeted Wednesday. "I'm exploring a candidacy for President of the United States in 2020 to renew the promise of this country for all."
Castro told Rolling Stone earlier this year that he is likely to launch a bid and has made early moves towards assembling a possible campaign. Last month, Castro and his twin brother Rep. Joaquin Castro held a meeting with possible donors to discuss the outlines of a potential presidential campaign. Since the midterm elections, he's engaged in conversations with prospective staffers, including operatives in Iowa.
Should he decide to run, Castro could find himself pitted against another Texas Democrat considering a presidential bid -- Rep. Beto O'Rourke, who fell short in his Senate bid against Texas Sen. Ted Cruz last month.
Two Democrats familiar with Castro's thinking tell CNN that the former HUD secretary's decision to make his intentions clear this month stems from the attention O'Rourke is getting for his 2020 aspirations and a desire to lock in top Texas donors.
Castro is eager to be the primary Texas Democrat in the 2020 field and believes making his plans clear from the get-go could put him a step ahead of the failed 2018 Senate candidate in staffing and fundraising.
"He is trying to step ahead and lock in donors," said one Democrat on O'Rourke's impact on Castro's decision. "He also needs a vehicle to fundraise and to be able to hire people."
Castro addressed the O'Rourke factor in an Associated Press interview announcing his 2020 exploratory committee.
"He's talented. He ran a good race against Ted Cruz," Castro said. "I'll let him talk about his future."
Castro maintained an active presence on the campaign trail throughout the midterms, including campaigning with O'Rourke in Texas. Castro endorsed 89 candidates through his Opportunity First PAC, and his campaign travels took him to the early nominating states of Iowa, New Hampshire, South Carolina and Nevada.
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