Austin stands to lose $2.5 million. Dallas faces a $32.1 million hit — and potentially $55.1 million more tied to FIFA World Cup preparations. Houston is staring down a $110 million clawback that must be repaid if it doesn’t reverse course.
The governor’s office isn’t mincing words.
“A city’s failure to comply with its contract agreement with the state to assist in the enforcement of immigration laws makes the state less safe,” said Andrew Mahaleris, press secretary to Governor Abbott. “It can have deadly consequences. Cities in Texas are expected to make the streets safer, not more deadly.”
The conflict stems from policies adopted by all three cities limiting when officers can detain suspects based solely on ICE administrative warrants. Dallas made compliance optional in 2024. Austin followed in January 2026. Houston’s City Council approved its own version last week — stopping short of making ICE contact optional but requiring quarterly reporting on every interaction officers have with federal immigration agents.
Letters from Andrew Friedrichs, Executive Director of the Governor’s Public Safety Office, state that each city signed agreements requiring police to “participate fully … in all aspects of the programs and procedures utilized by the U.S. Department of Homeland Security … to notify DHS of all information requested by DHS related to illegal aliens” in custody and to “detain such illegal aliens in accordance with request by DHS.” The new local policies, the letters argue, constitute a clear breach of those contracts.
Houston Mayor John Whitmire is feeling the pressure. He called a special council meeting to consider repealing the ordinance, then delayed it to April 22 after productive talks with the governor’s office.
“This is a crisis,” Whitmire said. “We have already lost state grant funding, which affects the Houston Police and Fire Departments, public safety services across our city, preparations for the 2026 FIFA World Cup, and the Department of Homeland Security.”
Attorney General Ken Paxton has opened investigations into Austin and Houston, mirroring a 2025 probe into Dallas under Senate Bill 4, the state’s 2017 anti-sanctuary law. U.S. Senator John Cornyn (R-TX) announced new federal legislation Thursday that would bar sanctuary jurisdictions from accessing federal grants and protect officers who cooperate with ICE from retaliation.
Harris County Commissioners Court also moved Thursday, directing its county attorney to draft recommendations on a potential ICE cooperation policy. (RELATED: Talarico Takes in $27 Million in Texas Senate Race)
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