Austin has officially lost $105 million in federal funding for its I-35 cap and stitch project. The grant, which was awarded in 2023 through the federal Neighborhood Access and Equity Program, was rescinded as part of President Trump’s “One Big Beautiful Bill” federal spending package signed last month.
Project Impact
The lost funding was intended to help pay for deck parks over I-35 from Cesar Chavez Street up to 12th Street, along with two pedestrian bridges near 41st Street connecting to CapMetro’s Red Line. The project aims to reconnect downtown Austin with East Austin by creating public spaces atop the freeway over areas long divided by the highway.
Project’s Future
Despite the setback, the project will continue because the City Council approved $104 million in local funding for the foundational work in May, and that commitment remains intact. The federal grant would have supplemented these local funds for additional design and construction costs.
Alternative Financing Options
The city is exploring various revenue sources to fill the funding gap, including “debt sources or other revenue streams outside the budget like hotel occupancy taxes, car rental taxes” that wouldn’t impact other city services like homeless services or parks. With limited debt capacity and the loss of federal funding, city staff are now recommending paring down the project to just a few central caps from the original billion-dollar capping program.
City officials remain optimistic about securing future funding, with council member Ryan Alter noting that a future federal administration might restore such grants. The cap-and-stitch project continues as part of TxDOT‘s multi-billion-dollar I-35 rebuild, with the city responsible for the deck parks while TxDOT handles the highway reconstruction and foundational structures.
Austin City Council is preparing to vote on how much more Austinites should pay in taxes. Council members are supporting a tax rate election, or TRE, in November that would allow the tax rate to be raised higher than the 3.5% limit set by the State of Texas.
Austin Mayor Pro Tem Vanessa Fuentes:
Texas Democratic Lawmakers Flee State Over Redistricting Battle
More than 50 Texas House Democrats fled the state on Sunday to deny the Republican-controlled legislature the quorum needed to pass a new congressional redistricting map. The GOP redistricting plan would create up to five additional Republican seats in the U.S. House, potentially helping Republicans maintain their narrow majority.
The Democrats traveled to Illinois (specifically the Chicago area), with some also going to New York and Massachusetts, where they have been holding press conferences to explain their opposition to what they view as gerrymandering.
Texas Democrats outside of the state spoke out in online gathering yesterday.
Law Enforcement Response
On Monday, the Texas House voted to issue civil arrest warrants for the absent Democrats, authorizing the sergeant-at-arms and state troopers to arrest them. However, these warrants only apply within Texas state lines, making them largely symbolic since the lawmakers are in other states.
The House sergeant-at-arms sent warrants to the Democrats, deputized law enforcement to find them, and even dropped paperwork off at some members’ homes, though no arrests were made.
Federal Involvement Sought
Texas Republicans have sought FBI involvement to force the Democrats back to the state, with President Trump suggesting the FBI could get involved in the standoff. However, legal experts question both the legality and feasibility of federal involvement in what is essentially a state legislative matter.
Escalating Pressures
Governor Greg Abbott has asked the Texas Supreme Court to declare vacant the seat of Democratic Rep. Gene Wu, one of the 50 lawmakers who left the state. The Democrats are being threatened with daily fines and felony fraud charges in addition to arrest warrants.
This morning, reports out of California said the Texas lawmakers currently in Illinois, New York and Massachusetts would be leaving that state and heading west.
Texas House Democrats offer to return to the state if Governor Abbott delays redistricting until the legislature addresses disaster preparedness, highlighting a strategic attempt to prioritize critical issues.
Texas Rep. Vikki Goodwin weighs in on redistricting efforts:
Experts weigh in on whether Texas law backs the effort to remove lawmakers and what could happen if felony charges are pursued. As tensions rise, the outcome of this case could reshape how legislative walkouts are viewed under state law.
A Texas Monthly representative says the move by Texas Democrats delays the vote, but the analyst calls it a last-ditch tactic with limited influence. Once the map passes, the fight is expected to shift to the courts.
A person is dead, and a portion of Slaughter Lane was completely shut down, after a vehicle crashed into a pole early this morning. Austin police say that the crash occurred in the 100 block of East Slaughter Lane around 4:05 a.m. this morning. Police say there was only one occupant in the vehicle, and that no other vehicles were involved. (CBS Austin)
The Texas Department of Transportation is temporarily closing the Martin Luther King Jr. Boulevard bridge at I-35 for continued demolition tonight between 10 p.m. to 10 a.m. and Saturday night from 9 p.m. to 10 a.m. (FOX 7 Austin)
Austin area Congressman Greg Casar is calling for an investigation into an Immigration and Customs Enforcement raid at an East Austin construction site last week.
Thursday, from Reporte Austin:
Tuition for undergraduate UT Austin students to confirm their attendance is due on August 14. However, for students who are undocumented, the bill will be priced higher due to the end of the state’s DREAM Act. (KVUE-TV via MSN)
A former Austin ISD art teacher has been sentenced and convicted on 20 charges of crimes against children, including continuous sexual abuse of a child. (Hays County Sheriff’s Office)
CapMetro reports that while ridership on its buses is still down about 20 percent from the 2019 pre-pandemic high, it’s up about 42 percent from the 2021 nadir, at least as of when those numbers were most recently reported in 2023. (Austin Monitor)
At least 135 people have died following catastrophic July 4 floods in the Hill Country and Central Texas — including at least 71 adults and 37 children from the Guadalupe River floods. The number of people still missing in Kerr County has remained at two.
WEATHER
5-DAY FORECAST / AUSTIN, TEXAS
The National Weather Service (NWS) is set to rehire approximately 450 employees, including meteorologists and hydrologists, following significant staffing cuts earlier this year. (NBC News)
A solar storm is on its way, triggered by a double-whammy of solar activity. The National Oceanic and Atmospheric Administration‘s (NOAA) Space Weather Prediction Center reports that a coronal mass ejection (CME) from Tuesday and a coronal hole high-speed stream (CH HSS) are expected to cause a geomagnetic storm.
This storm is predicted to be a G2 (moderate) tonight and a G1 (minor) on Saturday. (Austin American-Statesman)
The Texas redistricting standoff is complicating preparations for the March 2026 primary election. (Texas Tribune)
Texas Senator John Cornyn threw some shade at his 2026 opponent Attorney General Ken Paxton on social media Thursday.
House minority leader Hakeem Jeffries jumped in:
This weekend, Texans can shop tax-free on certain items, just in time for back-to-school season.
BP, the global energy giant with its U.S. headquarters in Houston, is now planning to cut 6,200 office jobs—up from the 4,700 layoffs it announced just seven months ago. That’s a 32 percent jump, and with Houston home to the company’s largest employee base, the ripple effects could be significant. (Chron)
The City of San Antonio, Bexar County officials, and the local river authority have released new details about their plan to save lives when flash flooding returns to South-Central Texas. (My San Antonio)
San Antonio Mayor Gina Ortiz Jones wants to slow down negotiations over a downtown Spurs arena as well as plans for a sports and entertainment district that would surround it.
A Texas icon turns 75 today.
If Texas Republicans go through with their plan to redraw the state’s congressional districts to give Republicans five more U.S. House seats, California Gov. Gavin Newsom, a Democrat, says he’ll push through new districts in his state that benefit Democrats. We discuss the growing redistricting arms race and why, at least for California, it’s not that simple.
(Episode from August 6, 2025)
A 22-year-old soldier from El Paso has been arrested on charges of attempting to transmit national defense information to Russia and attempting to export controlled technical data without a license. (My Texas Daily)
SPORTS
NFL: When do the Dallas Cowboys and Houston Texans begin their preseason?
MLS: Austin FC announced a deal with New England Revolution:
MLB: No action last night for the Rangers or Astros.
ON THE SCHEDULE
Austinites enjoyed live music at Zilker Park earlier this week as Blues On The Green returned.
Jake Andrews performed with the Antone’s Allstars and posted this video.
