The City of Austin could lose millions of dollars in state grant funding after the city’s police department adopted new policies limiting cooperation with federal immigration authorities.
In a letter sent Thursday, Andrew Friedrichs, executive director of the Public Safety Office in Gov. Greg Abbott’s office, warned Austin Mayor Kirk Watson that the city may be in breach of grant agreements tied to its handling of immigration enforcement.
At issue is a March 4 update to the Austin Police Department’s general orders outlining how officers handle requests from U.S. Immigration and Customs Enforcement. The changes prohibit officers from arresting or detaining individuals solely on the basis of ICE administrative warrants. Supervisory approval will now be required before officers can notify federal authorities or extend a detention.
According to the letter, those provisions contradict a February 2025 certification signed by Austin’s city manager affirming the city and its police department would “fully participate” in federal immigration enforcement programs administered by the Department of Homeland Security.
That certification included commitments to notify DHS of requested information and detain individuals in accordance with federal requests, while maintaining no policies that would impede such cooperation.
“The General Orders at issue authorize members of APD to not notify ICE about a match with an administrative warrant … and are not authorized to detain illegal aliens pursuant to such a warrant,” wrote Friedrichs. “Both policies impede or restrict the notification of DHS … and neither policy reflects full participation with DHS requests.”
Friedrichs directed the city to respond by April 23 with confirmation that it will not enforce the updated policy and will act to repeal the changes. Failure to do so, he said, could result in the termination of all related Public Safety Office grants.
State records indicate Austin received roughly $2.5 million in Public Safety Office funding for fiscal year 2026. If those grants are terminated, the city could be required to repay the full amount and become ineligible for additional funding for at least one year.
City officials pushed back on the state’s claims, arguing the policy remains compliant with both state and federal law.
“The City of Austin is confident that Austin Police’s revised General Orders do not contradict state or federal law and comply with our grant agreements,” City Manager T.C. Broadnax said in a statement. “They were designed to ensure the City can continue meeting our local public safety needs … while complying with all legal requirements, including the U.S. Constitution and Texas Senate Bill 4.”
Broadnax said the updates were necessary after more than 700,000 non-criminal administrative warrants were added to the federal database in early 2025, requiring clearer guidance for officers on how to respond.
He added the city will work to ensure funding is not jeopardized for public safety programs, including cybersecurity, counterterrorism efforts, support for sexual assault victims, and mental health resources for police officers.
The dispute comes as a similar fight is unfolding in Houston, where Mayor John Whitmire is now calling for the repeal of a recently passed ordinance limiting cooperation between the Houston Police Department and federal immigration authorities—just days after voting in favor of it.
The Houston measure eliminated a prior requirement that officers hold individuals for up to 30 minutes to allow ICE to respond. After Gov. Abbott’s office warned the city it could lose more than $110 million in public safety grants; Whitmire reversed course, saying, “We’ve got to correct that policy … We can’t survive in a city that does not have public safety funding.”
Houston officials were initially given until April 20 to repeal the ordinance or face repayment demands. That deadline has since been extended to April 22.
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