Austin City Council approved an unprecedented economic incentive package yesterday that will pay Southwest Airlines $2,750 for each new employee hired who lives in the city of Austin, marking a strategic bet on the airline’s expansion at Austin-Bergstrom International Airport.
The five-year, performance-based agreement could funnel up to $5.5 million to the Dallas-based carrier as it considers Austin among several competing cities for a major expansion that would create an estimated 2,000 high-paying jobs with average salaries around $180,000. In a city grappling with affordability challenges and seeking to strengthen its economic foundation, this deal represents both an ambitious gamble on aviation-driven growth and a controversial use of public funds—particularly as 10% of each hiring bonus will be directed to a newly created childcare assistance fund, acknowledging the real needs of working families even as taxpayer dollars flow to one of America’s largest airlines.
Council conducted a largely routine meeting on Thursday, approving 121 agenda items primarily through its consent agenda.
Austin City Council Meeting: December 11, 2025
Infrastructure & Construction
- Approved Sixth Street Chilled Water Transmission Line Extension contract increase to $28.2M
- Approved Burnet Road Corridor construction project for $22.5M
- Approved multiple water/wastewater pipeline improvement projects (Guildford Cove, Concordia Neighborhood, Travis Heights)
- Approved stream stabilization and flood risk reduction projects for Austin Watershed Protection
- Authorized defeasance of Water and Wastewater System Revenue Bonds ($46.6M)
Aviation
- Approved cargo apron lease amendments with DHL Express, FedEx, and UPS at Austin-Bergstrom International Airport
- Approved Compressed Natural Gas fuel permit amendment with Clean Energy ($1M)
- Approved Southwest Airlines business expansion agreement
Homelessness Services
- Approved permanent supportive housing agreement with The Other Ones Foundation ($14.5M)
- Approved permanent supportive housing agreement with Family Endeavors ($8.5M)
- Approved housing agreements with Bailey at Berkman LP ($2.25M) and Bailey at Stassney LP ($2.25M)
- Approved permanent supportive housing agreement with The SAFE Alliance ($3M)
- Ratified agreement amendments with Caritas of Austin and Integral Care
Public Safety & Technology
- Approved public safety consulting services contract with Mission Critical Partners ($5.69M)
- Approved cybersecurity services contract with CDW/Sirius Computer Solutions ($5.35M)
- Approved managed file transfer service contract
- Accepted grant funding from Texas Department of Transportation for traffic signal improvements
- Approved traffic analytics data services contract with Inrix ($1.31M)
Economic Development
- Approved Creative Content Incentive agreement with Hermanos Productions for film “Brothers” ($150K)
- Approved Place-Based Enhancement Incentive agreement for mixed-use project on East 11th Street
- Approved interlocal agreement amendment with Austin Economic Development Corporation
Animal Services & Public Health
- Approved interlocal agreement with Texas Department of Criminal Justice for animal training program for veterans
- Approved animal sterilization services contracts with Austin Humane Society ($1M) and Emancipet ($4M)
- Accepted grant funding for HIV/STI prevention ($200K), refugee medical screening ($2M), and youth programs ($400K)
- Approved ordinance waiving/reimbursing food establishment permit late fees (up to $252K)
Emergency Services
- Approved fourth amendment to Travis County EMS interlocal agreement ($18.88M)
Transportation
- Approved advance funding agreements with TxDOT for vehicle detection project ($10.99M total), traffic monitoring system ($714K), and traffic management system enhancements ($6.31M)
- Approved digital advertising services agreement with Meta Platforms ($145K)
- Amended City Code for temporary construction zone speed limits
- Approved two right-of-way vacations on South Heights alleys
Parks & Recreation
- Approved property acquisitions for park purposes at 1804 Astor Place ($260K) and 704 Wren Avenue ($420K)
Fleet & Facilities
- Approved security improvements contract for City facilities ($1.69M)
- Approved elevator/escalator maintenance contracts ($18.75M)
- Approved automotive parts and vehicle repair service contracts
Education & Culture
- Approved interlocal agreement with Austin ISD for summer arts/history programs ($1,700)
- Approved interlocal agreement with Austin ISD for cable equipment ($100K)
Zoning & Land Use (Approved on All Three Readings)
- 12940 North U.S. 183 – rezoned to GR-V-CO
- Calhoun House (2401 Givens Avenue) – designated historic landmark
- 9400 Metric Boulevard – rezoned to NBG-NP Warehouse Mixed Use Subdistrict
- 1904 San Gabriel – rezoned to GO-CO-ETOD-DBETOD-NP
- 1012 E. 38th Street – rezoned to LO-MU-NP
- 410 and 408 St. Johns Avenue – rezoned to SF-3-NP
- 1305 W. Oltorf Street – rezoned to CS-V
- 1000 Red River – rezoned to DMU
- Interport 2 – amended PDA conditions
- 905 Shady Lane (P & P .72) – rezoned to LO-MU-CO-NP
- 3305-3303 Duval Street and Harris Avenue – rezoned to MF-3-NP
- 7221 McNeil Drive – approved second and third readings
Restrictive Covenants
- Approved restrictive covenant termination for 600 Harthan Street
Disannexations (Approved)
- 1515 Manana Street (0.717 acres)
- Properties adjacent to Lake Austin near FM 2222/Loop 1 (130 acres)
- Additional properties adjacent to Lake Austin (13 acres)
Postponed Items
- East 11th Street cocktail lounge conditional use cases (to January 22, 2026)
- Multiple zoning cases postponed to January 22, 2026
Withdrawn Items
- City Code amendment regarding density bonus lease addendum provisions
- Executive session on Austin Energy matters
Other Actions
- Approved board/commission appointments
- Approved resolution directing City Manager to develop gender-inclusive facility remodeling program
- Approved Municipal Utility District bond issuances (Pilot Knob MUD No. 2 and No. 3)
- Approved firefighters’ union contract extension
- Approved CapMetro transportation services agreement for City employees ($1M)
WATCH THE ENTIRE COUNCIL MEETING:
Firefighters battled two major fires Thursday.
UPDATE: Austin Fire crews have the fire under control. The incident required more than 40 residents to be evacuated, and eight apartment units have been impacted. Here is footage from the scene: pic.twitter.com/Dre1b9SQY6
— Austin Fire Dept (@austinfiredept) December 11, 2025
A structure fire located 3115 at Manor Road between Tillery St. and Airport Blvd. yesterday.
In two separate incidents Thursday, a pedestrian was struck and killed by a car.
A 31-year-old man was arrested and charged with endangering a child, which is a state jail felony. Deray Marion is said to have sped past a stopped Austin ISD school bus that had its flashers on while a student disembarked.
The suspect in a violent road rage incident on the Capital of Texas Highway has been identified and charged,
Two separate incidents at local H-E-B stores Thursday made headlines.
Bastrop County authorities, along with ICE, arrested three people on drug charges Wednesday.
The Travis County DA is taking steps to clear the three men accused in the 1991 Austin yogurt shop murders.
Two Williamson County families filed a lawsuit Monday against a Hutto daycare center alleging their infant daughters were repeatedly exposed to THC vape smoke, with one child testing positive for levels 132 times above the minimum threshold.
A case of pertussis, otherwise known as whooping cough, was reported at McCallum High School Thursday, according to the Austin-Travis County Health Authority. (KVUE-TV)
PODCAST
After AISD school buses captured alarming footage of dangerous Waymo driving around Austin, the company announced this week that it will voluntarily recall its software to implement key programing updates. This news comes as Elon Musk doubles down on his plan to expand Tesla Robotaxis’ presence) in Austin, while also removing the in-car safety moderator by the end of the month. Executive producer Eva Ruth Moravec is joined by producer Elissa Castles and Andrea Grimes, co-founder of The Flytrap, to discuss why Austin is becoming the testing ground for the nation’s autonomous vehicle race.
Plus, the group discusses major Austin-Bergstrom updates, and which holiday pop-ups to check out around town.
Getting free legal help is now easier in Austin. A legal kiosk just opened at the Travis County Courthouse to connect people with free, legal resources.
WEATHER
THURSDAY’S HIGH / LOW TEMPERATURES
AUSTIN-BERGSTROM INTERNATIONAL AIRPORT
CAMP MABRY
5-DAY FORECAST / AUSTIN, TEXAS
U.S. Rep. Jasmine Crockett, D-Texas, may have just entered the Democratic primary for U.S. Senate on Monday, but according to a new poll she’s already the favorite to win.
The Barbara Jordan Public Policy Research and Survey Center at Texas Southern University polled 1,600 likely Texas Democratic Primary voters between Dec. 9 and Dec. 11, releasing their results on Friday morning. Among those responses, 51% of respondents indicated support for Jasmine Crockett, while 43% showed support for State Rep. James Talarico, D-Round Rock. The pollsters said that the results have a margin of error of +/- 2.45%.
It is virtually a dead heat between Sen. John Cornyn and Attorney General Ken Paxton in the Republican primary for U.S. Senate, according to a new poll by Emerson College Polling.
The Texas Education Agency is replacing the elected school boards of the Beaumont, Connally and Lake Worth school districts, Education Commissioner Mike Morath announced Thursday. (Texas Tribune)
Despite a pending federal ban on consumable hemp products, the Texas Alcoholic Beverage Commission (TABC) is still working to regulate the substance in accordance with Gov. Greg Abbott’s September executive order.
On Thursday morning, the commission held a public comment session about rules age-gating consumable hemp products (CHP) from those under 21 years old. After Governor Greg Abbott’s order, the agency put in emergency rules in place effective October 1, but those rules can only be effective for 120 days with the option of a 60-day extension. (KXAN-TV)
Club America is Turning Point USA‘s high school outreach program. According to the organization, it’s a student-led conservative group that “spearheads impactful initiatives, helps students register to vote, and inspires meaningful conversations about the foundations of a free society.” According to Texas Governor Greg Abbott, at least 500 high schools across Texas already have chapters, but Abbott said he wants more.
Bexar County officials make arrests in three investigations into alleged child pornography and indecent exposure crimes.
H-E-B is recalling a soup product for failing to declare milk as an ingredient—one that could cause a serious or life-threatening allergic reaction for some people.
The recall is for 16-ounce containers of the Meal Simple brand Red Lentil Dal Soup.
The product was distributed from November 3 to December 8 to H-E-B retail stores across Texas. (Texas Public Radio)
SpaceX, the Elon Musk-owned aerospace company, may go public next year. Reporting from the Wall Street Journal and Bloomberg revealed recent plans to put the company on the stock exchange with a potential $1.5 trillion initial public offering (IPO).
WEEKLY ROUNDUP
James Henson and Joshua Blank dig up some highlights from UT/Texas Politics Project polling in 2025 on subjects including property taxes, speech rights, views of the legislature, healthcare, vaccines, and more.
(Episode from December 11, 2025)
SPORTS
COLLEGE FOOTBALL: The Texas Longhorns released their 2026 schedule Thursday.
COLLEGE BASKETBALL: Texas faces a tough challenge tonight as they are on the road at No. 5 UConn. It’s the only game in the Top 25 today. (Yahoo! Sports)
Coach Miller on what it takes to win in Hartford🤘#HookEm pic.twitter.com/vwOL3pmdJG
— Texas Men’s Basketball (@TexasMBB) December 11, 2025
NBA: Amen Thompson’s three-point play with 17.2 seconds left helped the Houston Rockets to a 115-113 win over the Los Angeles Clippers on Thursday night. (Yahoo! Sports)
ON THE SCHEDULE
The Rockets are off tonight, as are the San Antonio Spurs. The Dallas Mavericks host Brooklyn tonight.
STANDINGS
NHL: The Dallas Stars ran into a bit of a roadblock in Minnesota last night. Marcus Johansson scored twice, Matt Boldy had a goal and two assists, and the Minnesota Wild beat Dallas 5-2 on Thursday night, ending the Stars’ 11-game point streak. (Yahoo! Sports)
The Stars are idle tonight but back in action tomorrow in Dallas hosting Florida.
In the latest episode of Texas Parks & Wildlife, enjoy the sights and sounds of one of the best birding boardwalks on the coast. A Pineywoods haven invites paddling, hiking, and stargazing under dark Texas skies. Some fragile flying insects bring beauty and business to Texas each year. Meet the folks who look out for our butterflies.
