City to Cut Over $5 Million in Social Services: Following Prop Q’s unsuccessful vote, Austin is set to make major cuts to social services throughout the city. A city memo that was secured by the Austin American-Statesman shows where City Manager T.C. Broadnax and other city leaders have decided to decrease funding. The memo shows that there will be a 10% cut among contracts held by economic development and public health departments, and municipal and community courts. There will also be a 4% redistribution of funds originally slated for the Homeless Strategy Office. AISD, SAFE Alliance, Caritas, Integral Care, and Austin Area Urban League will take on the largest cuts. Walter Moreau, executive director of Foundation Communities, was unaware that the cuts would be this significant; his organization is set to have $500,000 pulled. “This has come as a complete surprise and shock to the nonprofit community,” he said. “There was never any indication this was an across-the-board 10% chop.”
Paxton Divorce Files Released: Following multiple lawsuits from local and national newsrooms, Attorney General Ken Paxton and state Sen. Angela Paxton released their divorce records. According to The Texas Tribune, Angela Paxton filed for the divorce on “biblical grounds” this past July, alleging Ken of committing adultery. After a Collin County judge closed off access to the divorce documents, media organizations filed the lawsuit. On Friday, Dec. 19, Judge Robert Brotherton signed off on the order, making the records publicly available. They show that both Ken and Angela received $20,000 from their blind trust for legal fees. The Paxtons are now in mediation.
Central City District Planning to Increase in 2026: Planning for the Central City District, which is an evolution of the Downtown Austin Plan after City Council called for updates to the 2011 initiative, is set to increase in 2026, according to reporting by Community Impact. Since the plan was established, it has been extended to include the West Campus neighborhood and the South Central Waterfront district. Prior to the plan’s adoption next December, the city has and will continue to engage the public for feedback. The city is set to introduce reporting on Central Austin conditions; an analysis of necessary improvements to infrastructure, social services, cultural assets, and housing and economic development; a list of civic projects to be completed Downtown; an established map of community goals for future improvements; and more.
APD Arrests Man Responsible for Explosions: After months of investigating, APD announced that it has arrested Derek Austin Gillespie for setting off repeated explosives near St. Edward’s University in August. On Aug. 13, the APD Bomb Squad responded to an explosion near the 2500 block of Jones Road, finding evidence of improvised explosives. APD and other law enforcement agencies conducted a search warrant at Gillespie’s home on Dec. 16, where they found “multiple improvised explosive devices,” and later arrested the 49-year-old.
Drone Program to Help Combat School Shootings: Campus Guardian Angel, a local company that works with law enforcement to provide responses for active shooter threats, will launch a pilot program within Boerne ISD that is set to counter school shooting incidents, according to KVUE. Co-founder Bill King said that the drone systems will have a map of the school and be placed in a safe location until needed during a threat.
Pushback on State AI Laws: After Trump signed an executive order that would cut broadband funding in states with AI regulations, Texas lawmakers are voicing their opposition, according to The Texas Tribune. Joined by eight Republicans and seven Democrats, Republican state Sen. Angela Paxton wrote a letter to U.S. Sens. Ted Cruz and John Cornyn asking them to support the states’ laws regulating AI that are set to take effect on Jan. 1. The regulations include prohibiting social scoring from government agencies; banning companies from creating AI that incites self-harm, violence, or criminal behavior; restricting using AI to interfere with available political content; and more that local lawmakers believe is necessary framework for the growing industry. “All of the Texas actors are going to say we want Texas to be a leader in AI, and I am one of those,” Paxton said. “I want Texas to be a leader in AI, but you know what, I don’t want Texas to be a leader in AI generated child porn.”
More School Vouchers on the Way: Following the $1 billion private school voucher program that was established in the most recent legislative session and will take effect during the 2026-27 school year, Gov. Greg Abbott has now decided Texas will join a federal scholarship program that will increase the state’s established plan. Included in Trump’s Big Beautiful Bill, the program will offer tax incentives to those who donate funds to organizations that provide families assistance with educational expenses. According to the Statesman, eligible families must earn less than 300% of the median income in the area which they reside in, and the understanding is that parents would be able to stack the federal scholarships on the state voucher.
City Warns of Ongoing Scam: Last Thursday, Dec. 18, Austin Development Services released news that there have been ongoing instances where at least one individual has falsely claimed to represent the city in an attempt to scam Austinites out of money. The press release states that the scammer was “requesting urgent payment of fees.” They reminded the community that all development fee payments should be made through the city’s online portal, a city facility, or a city employee; any fiscal surety deposits should be paid by bond, escrow, or letter of credit, rather than online; the city does not outsource fee collections.
ICE Creates Conflict for Texas Prosecutors: While ICE continues to deport immigrants at an aggressive pace, Texas prosecutors are struggling to close cases, according to The Texas Tribune. District Attorney Sarah Stogner said that she has struggled convicting felons due to the fact that the victims and witnesses that she represents have been deported before their trials. Other district attorneys around the state have also expressed concern with deportation bogging down these legal procedures. Not only are victims and witnesses being deported, but El Paso District Attorney James Montoya said that immigrants are hesitant to participate in trials due to the ongoing threats by Trump and ICE.
City Encourages Christmas Tree Recycling: Austin Resource Recovery is urging community members to recycle their all-natural trees after use. Starting on Dec. 26, Austinites looking to recycle their trees can place them on the curb for collection on the neighborhood’s regularly scheduled composting collection day. The city asks that trees taller than six feet be cut in half, all ornaments, decorations, tinsel, lights, and tree stands be removed, and any garlands and wreaths be removed from wire frames. Trees, wreaths, and garlands can also be dropped off at Zilker Park on Sunday, Dec. 28, and Saturday, Jan. 3, between 10am and 2pm. The trees will be transitioned into mulch that will be available for free on Jan. 8 at 9am.
Austin Water to Receive $55 Million: Austin Water announced last Friday, Dec. 19, that it has secured a $55 million commitment – with interest rates as low as 2.895% – from the State Water Implementation Fund for upcoming Capital Improvement Projects. According to the press release, the first $13 million in low-interest loans from the Texas Water Development Board will help the city with major investments in infrastructure developments. Along with the committed funds, Austin Water says it has closed a financial transaction that reduces debt payments, ultimately set to save $49.6 million.
Abbott Proposes Abolishing School District Property Tax: After lawmakers proposed and passed increasing the homestead exemption to curb concerns around property taxes in the most recent legislative session, Gov. Abbott has now suggested the idea of eliminating school district property taxes. According to KUT, Abbott proposed the idea at a reelection campaign event in Houston last month. With no state income tax, the only way to offset the loss that it would bring would be to increase sales tax. Lt. Gov. Dan Patrick raised his concerns, stating that abolishing school taxes would eliminate around $40 billion for the state.
Trump Reschedules Cannabis: In a year where just about nothing good came out of the Trump administration, he finally got something right. Last Thursday, Dec. 18, he signed an executive order to reclassify cannabis from a Schedule I substance to a Schedule III, after he used the idea as a way to swing votes in the 2024 election. While the rescheduling does not legalize cannabis in Texas or any other states that currently restrict the sale and possession of marijuana, it will provide easier access for future research and offers better tax benefits for medical providers in the Texas Compassionate Use Program, according to the Fort Worth Star-Telegram.
Where Things Stand with Epstein Files: After Congress passed the Epstein Files Transparency Act last month, which required the Department of Justice to publish all records related to Jeffrey Epstein, the DOJ has yet to release all of the files. According to The Hill, at least 16 files have disappeared from the department’s website, one of which featured a photo of Trump. Some of the files have since been restored on the DOJ’s website, with the department stating that it had removed them for further review and has reposted some of them without altering or redacting any information. Deputy Attorney General Todd Blanche said that the department will release “several hundred thousand” documents over the next couple of weeks. U.S. Reps. Ro Khanna of California and Thomas Massie of Kentucky have voiced disappointment with how the department has handled the situation, and are working to find Attorney General Pam Bondi in contempt. If so, Khanna said that Bondi would be fined each day that the documents are not released.
QUOTE OF THE WEEK
“These areas sit at the heart of our city, and the planning decisions we make today will determine how accessible, connected, and welcoming they are for decades to come.”
City Council Member Zo Qadri regarding the Central City District plan
This article appears in December 26 • 2025.