MRT 8/3-7/26 (free): $17B Terafab in Grimes County Confirmed // Talarico Unveils Economic Plan // New TX Data Centers on Hold Amid State Audit // RIP Kay Granger

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TOP NEWS

“Musk, Abbott confirm $17B Terafab plant will be built near College Station” via Houston Chronicle‘s Andrea Leinfelder – It’s official: SpaceX and Tesla are building a massive $16.8 billion chipmaking facility outside of College Station in Grimes County.

SpaceX has been working on this deal for months and has already negotiated tens of millions of dollars in incentives with Grimes County , local school districts and the state for the advanced semiconductor facility, called Terafab.

The facility is expected to span 100 million square feet and employ more than 3,000 people. The initial phase of development is expected to cost $16.8 billion, SpaceX said Thursday , lower than the company’s prior estimates of $55 billion.

“We’re now embarking on the most epic chip-building effort,” Elon Musk, CEO of SpaceX and Tesla, said in a statement . “The Terafab is bringing cutting-edge manufacturing to America, creating thousands of high-paying jobs in the Lone Star State and enabling us to produce AI chips at scale for use on Earth and in space.” Gov. Greg Abbott announced Thursday that the project is receiving a $30 million Texas Enterprise Fund grant from the state. Joe Fauth III said in a statement. “When we can connect a company like SpaceX and the Terafab project to develop an industrial site in Grimes County, that makes all the sense in the world.” (Houston Chronicle)

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“New Texas data center projects frozen until state audits them” via The Texas Tribune‘s Paul Cobler and Alejandra Martinez – Amid growing public backlash to the rapid buildout of data centers across Texas, Gov. Greg Abbott on Monday announced a moratorium on the approval of data centers until regulatory agencies can audit proposed data centers seeking connection to the state’s electric grid.

It is unclear how long the audit will take, but the effort is Abbott’s strongest effort yet to slow the development of these data centers statewide and underscores how little information members of the public, including state leaders, know about the facilities.

Abbott is asking the Public Utility Commission of Texas and the Electric Reliability Council of Texas to ensure data center developers provide information on tax breaks they will receive; power use and generation; water use and cooling operations; efforts to reduce impacts on local communities; and ownership of the facility. Any projects that fail Abbott’s ordered “comprehensive verification and audit” should be denied connection to the grid, the governor said.

“Our top priority is to protect Texans’ safety and quality of life,” Abbott wrote in a statement. “Any project that fails to comply with the requirements set forth by the PUCT and ERCOT, and by state law, must be denied connection to the Texas grid. Simply put, Texans must come first.” (TX TRIB)

“Report: More than half of Texas businesses have adopted AI” via KXAN Austin‘s Cami Knott – More than half of Texas businesses are already using artificial intelligence, according to a new report that argues the technology is rapidly becoming a part of everyday business operations across the state. The report was released Tuesday by Build American AI, a 501(c)(4) nonprofit advocacy organization that promotes U.S. leadership in artificial intelligence.

Citing the Dallas Federal Reserve’s Texas Business Outlook Survey, the report says 59.1% of surveyed Texas businesses reported using either traditional or generative AI in May 2025, up from 38.3% just a year earlier. Generative AI is also being adopted faster than past technologies. According to the Dallas Fed, it took just three years for generative AI to reach a 36% adoption rate among Texas Business Outlook Survey respondents.

The report argues AI is no longer primarily a tool for major technology companies. Instead, it says businesses across industries are using the technology to streamline routine tasks, from drafting contractor estimates and writing product descriptions to reducing paperwork in healthcare clinics and improving logistics operations. Small businesses are also increasingly embracing AI. Using U.S. Small Business Administration and U.S. Chamber of Commerce data, the report estimates roughly 1.86 million Texas small businesses already use an AI platform. (KXAN)

“Houston has seen nearly 3,000 layoffs this year. Here are the largest.” via Houston Chronicle‘s Erica Grieder – Nearly 20 companies in the Houston region laid off 2,697 employees during the first six months of the year, slightly more than the 2,440 workers who lost their jobs to layoffs during the same period last year, according to the Texas Workforce Commission.

But the Houston economy is beating economists’ expectations heading into the second half of the year, according to economists, with elevated oil prices boosting the region’s energy sector and consumers spending more on events such as the 2026 World Cup.

“Houston’s acceleration is all the more notable against a cooling national backdrop,” noted Mohammad Ahmadizadeh, economist and principal data analyst for Workforce Solutions Gulf Coast, Houston’s regional workforce development board, in a June report. (HOU CHRON)

“Why Texas is betting ‘Y’all Street’ can take on Wall Street” via NPR‘s Maria Aspan – Construction workers stand at the site of Goldman Sachs’ new campus in Dallas. The New York investment bank is supersizing its presence in the Texas city amid a financial boom. Local political leaders and the banking executives they’ve wooed are calling it "Y’all Street."

The New York investment bank plans to open this 800,000-square-foot campus in 2028, with space to eventually employ more than 5,000 local workers. The building will supersize Goldman’s presence in Dallas, where the company already has its second-largest U.S. office after its global headquarters in Manhattan.

Goldman is building its new campus in “the beating heart of Y’all Street,” says Aasem Khalil, the Goldman Sachs partner who runs its Dallas office. He rattles off the names of Goldman’s top U.S. competitors, like JPMorgan Chase and Morgan Stanley — both also headquartered in New York — and points out that they also have or are considering Dallas offices. (NPR)

“Kay Granger, first GOP woman from Texas to win House seat, dies at 83” via The Washington Post‘s Anusha Mathur – Kay Granger, a trailblazing Texas Republican who served as the first female mayor of Fort Worth and went on to spend 14 terms in Congress, rising to become the first woman from her party to chair the powerful House Appropriations Committee, has died. She was 83.

Her death was announced on social media Sunday by Speaker Mike Johnson and the House Republican Conference. Additional details were not immediately available. Ms. Granger’s family had announced in December 2024 that she had dementia, amid claims that her staff tried to conceal her cognitive decline.

A former teacher and small-business owner, Ms. Granger served for four years as mayor of Fort Worth before being elected to Congress in 1996. After becoming Appropriations chairwoman in 2019, she wielded immense influence over federal spending and helped steer funds toward Fort Worth-based defense companies such as Lockheed Martin and the helicopter-maker Bell Textron.

Ms. Granger did not seek reelection and left Capitol Hill in January 2025, at nearly 82. Just before her term ended, the Dallas Express, a conservative Texas media outlet, reported that she had not cast a vote in Congress in nearly five months. Her office continued issuing news releases and posting on social media according to the story, but reporters for the publication could not reach Ms. Granger’s aides, and her Texas office appeared closed. (WAPO)

“Kay Granger, trailblazing Fort Worth congresswoman, leaves lasting legacy” via Fort Worth Star-Telegram‘s Eleanor Dearman (summary produced with AI assistance) – Kay Granger, the first Republican woman to represent Texas in Congress and Fort Worth’s first female mayor, has reportedly died.

She retired in January after nearly three decades in the House, where she rose to chair the powerful Appropriations Committee.

The summary points above were compiled with the help of AI tools and edited by journalists.

The full story in the link at top was reported, written and edited entirely by journalists. (FWST)

“San Antonio climber among 10 killed in Pakistan avalanche with famed mountaineer Nirmal Purja” via TPR‘s Chris Arnold – The celebrated climber Nirmal Purja and the nine other members of a mountaineering expedition group have died after they were caught in an avalanche on one of the highest peaks on earth.

“It is with profound sadness and immense heartbreak that we confirm that Mirmal ‘Nimsdai’ Purja tragically lost his life following the avalanche on Broad Peak,” Purja’s company Elite Expeditions said in a statement. Broad Peak is a 26,414 foot mountain in Northern Pakistan.

Purja, who was 43 years old and a British-Nepali climber, became world-renowned by breaking climbing records. In 2019, he was the first person to climb all 14 mountains world-wide with elevations above 8,000 meters (26,247 feet) in 6 months and 6 days. The feat was the subject of a Netflix feature documentary in 2021.

The American mountaineer was 39-year old Mallory Geis of San Antonio, Texas, according to the Associated Press. In a social media post earlier this year she wrote about her decision to close her Pilates studio to pursue high altitude climbing. “So here we go. Taking a giant leap of faith into the unknown to see where life goes. I have a sneaking suspicion there will be lots of helmets, harnesses, and crampons involved,” Geis posted. (TPR)

“Professors sue Texas A&M System over limits on teaching race, gender” via The Texas Tribune‘s Jessica Priest – Four professors and a national faculty group asked a federal judge Monday to block the Texas A&M University System’s restrictions on teaching about race, gender and sexuality and to reinstate courses canceled under the policy.

The university system bars professors from “advocating” race or gender ideology or topics related to sexual orientation or gender identity. The policy applies to all 12 universities in the system. It requires presidential approval to address those subjects in certain courses and, according to the lawsuit, prohibits them in core courses.

The lawsuit asks the judge to rescind instructions requiring professors to remove particular readings or subjects and declare the policy unconstitutional. The professors and faculty group allege the restrictions violate the professors’ First Amendment rights and are so vague that faculty cannot determine what they may teach without risking discipline. They want the judge to restore courses removed from the core curriculum and prevent the regents from imposing similar restrictions.

The American Association of University Professors brought the lawsuit alongside four professors: Texas A&M professors Leonard Bright, Vanita Reddy and Landon Sadler and Tarleton State University professor Aaron George. They are represented by the ACLU of Texas, the national ACLU and the Houston law firm Yetter Coleman. They sued the system’s regents in federal court in Houston. (TX TRIB)

2026  

“James Talarico rolls out “New American Dream” economic plan” via The Texas Tribune‘s Kayla Guo, Gabby Birenbaum and Colleen DeGuzman – Democratic U.S. Senate nominee James Talarico proposed a sweeping economic agenda on Wednesday that called for repealing recent GOP tax cuts for the wealthy and enacting universal childcare, among other policies meant to lower everyday costs.

“We have an affordability crisis because we have a corruption crisis,” Talarico said during a nearly 30-minute speech to an audience of 1,300 people in Arlington. “For too many of our neighbors — for too many Texans — the American dream has become an American nightmare.”

Throughout his campaign, Talarico has stuck to a populist economic message that links rising costs to billionaire political influence and an economy he says is tilted in favor of the ultrawealthy over working people. Wednesday’s address kicked off a monthlong tour to promote his first detailed rollout of his proposals to reverse course, under the banner of what he is calling the “New American Dream.” (TX TRIB)

“Texas ban on several THC products emerges as potential wedge issue in Senate race” via Houston Public Media‘s Andrew Schneider – A recent Texas state ban on several forms of tetrahydrocannabinol or THC, the main intoxicating component in cannabis, is already becoming an issue in this year’s U.S. Senate election.

The ban took effect Friday. State Rep. James Talarico, the Democratic Senate nominee, called the ban “a gift to the cartels” in a Monday statement and said the state is “going back to the days of prohibition” seven years after the Texas Legislature legalized hemp.

The ban is a result of a Texas Supreme Court ruling earlier this year that permits the state’s Department of State Health Services (DSHS) to reclassify most types of hemp-derived THC as a schedule I drug, making it illegal to sell and possess in the state. DSHS had been blocked from making the reclassification by a court injunction issued in 2021. Since then, different kinds of THC could be sold by businesses in the state. (Houston Public Media)

“Democrat Gina Hinojosa makes big ad buy in effort to unseat GOP Gov. Greg Abbott” via Dallas Morning News‘ Karen Brooks Harper – A new $340,000 ad campaign by Gina Hinojosa, the Democrat trying to unseat Texas Gov. Greg Abbott, dropped on Tuesday in markets across the state – ramping up her battle against the Republican running for a historic fourth term in Austin.

The campaign is targeting Dallas-Fort Worth voters. The 30- and 60-second ads, featuring a diverse group of Hinojosa supporters, promise to rein in Republican leaders “who forgot who they serve.” The ads carry on the theme of fighting corporate interests the state lawmaker says have been controlling the Texas GOP for far too long.

“Greg Abbott had one job – take care of Texas,” supporters say in one ad. “Instead, he took care of his billionaire donors.” The cable ad buy brings Hinojosa’s campaign spending to nearly $1 million, according to a spokesperson. The ads will continue across the state until the Nov. 6 election.

Hinojosa had about $3 million in her campaign account as of June 30. By contrast, Abbott had just over $67 million. Hinojosa and other prominent Democrats on the ticket have campaigned on a theme of the wealthy heavily influencing state government to the detriment of Texans — referring to private school vouchers, high property taxes, struggling hospitals and the encroachment of big data centers. (DMN)

“In Texas, a political group bets $6 million on Latino voters coming back to Democrats” via Houston Chronicle‘s Jonathan J. Cooper – A left-leaning group is planning to spend $6 million organizing Latino voters in Texas, a group that has trended away from Democrats but is pivotal to their hopes of picking up seats in Congress.

Somos Votantes has started a $2 million statewide voter education push centered on door-to-door conversations and voter registration. Its affiliated political committee, Somos PAC, is preparing a $4 million advertising campaign focused on three South Texas House districts, where they aim to channel voter angst about the economy into support for Democratic candidates in Republican-leaning districts.

“We’re really hoping that we can reconsolidate support for Democrats by presenting the positive economic vision that Democratic candidates in these House districts have,” said Melissa Morales, the founder of Somos Votantes.

Texas is at the crossroads of the fight for control of the U.S. House in the November midterms, and winning back Hispanics who were drawn to President Donald Trump in 2024 will be key to Democrats’ chances there. (HOU CHRON)

STATE GOVERNMENT  

“Data centers use lots of water and power, but Texas officials don’t know exactly how much” via TPR‘s Kailey Hunt – Torrie Martin’s ranch is located near the Vistra Hays Power Plant, which generates around 990 megawatts of power, enough to power 250,000 homes. The proximity to the power station makes Martin’s neighborhood a desirable place to build data centers. Data centers need a lot of power to operate, and, depending on how they’re cooled, a lot of water too.

As more and more data center developers submit proposals to build in Texas, questions about how they’ll impact Texas’ grid and contribute to drought conditions across the state are widespread. So much so, that Gov. Greg Abbott effectively ordered a pause on all data center projects looking to connect to the grid until officials get a better grasp on the amount of resources they will use.

Margaret Cook, the vice president of water and community resilience for the Houston Advanced Research Center, said there is an answer to how much water data centers are using. “The clear answer to the general question is it depends,” she said. Cook said it depends primarily on two things: how big a data center is and what cooling technology it uses. (TPR)

“More than 85,000 students using school vouchers in Texas’ first year” via The Texas Tribune‘s Jaden Edison and Sneha Dey – More than 85,000 families are participating in Texas’ private school voucher program during its first year, a number that could increase as state officials finalize enrollment data, according to a new state report.

White families make up the largest share of participants so far, as do those considered low-income, the comptroller’s office noted in the report released Monday. The report did not say how many students previously attended private school or received home schooling, although earlier data showed that 57% of families invited to the program fell into that category.

While it appears unlikely that the majority of first-year voucher recipients will come from public schools, the largest numbers of participating families live within the boundaries of some of the state’s most populous districts — with Houston, Dallas and Northside in the San Antonio area leading the way. (TX TRIB)

#TXLEGE  

“Texas governor’s data center moratorium prompts calls for special legislative session” via Houston Public Media‘s Natalie Weber – Critics say the governor must call legislators to Austin to pass state laws regulating data centers.

After Texas Gov. Greg Abbott declared a moratorium on new data centers, pending a state-led audit of these fast-emerging and controversial facilities, several of his political opponents issued statements critiquing his actions.

But they weren’t criticizing his decision to temporarily prevent new data centers from connecting to the Texas power grid. Instead, they said Abbott’s actions didn’t go far enough. “Let’s be very clear about this: Abbott can take action now to end the data center madness,” Austin state Rep. Gina Hinojosa, the Democratic nominee for governor, said in a statement.

Texas Agriculture Commissioner Sid Miller, a Republican, was among critics calling for a special session. Abbott endorsed Miller’s opponent, Nate Sheets, who defeated Miller in this year’s GOP primary election. “Without legislative action, this directive is all hat and no cattle — empty political rhetoric wrapped in meaningless fluff,” Miller said in a statement. (Houston Public Media)

“Governor doesn’t want CPS Energy to be sole San Antonio electric provider” via San Antonio Express-News‘s Molly Smith, Kelsey Brown and Megan Rodriguez – Gov. Greg Abbott said he wants to break up CPS Energy’s monopoly in San Antonio and give customers a choice of electricity providers — a move that could potentially cut into the city-owned utility’s revenue and hurt city finances.

Abbott pitched his plan to eliminate the “city monopolies” on electricity on Tuesday. It’s largely aimed at San Antonio and Austin, which own their electric and water utilities.

He said he’ll ask lawmakers to take up his proposal in the 2027 Texas Legislature. The governor’s office said San Antonio customers would save up to 13% on their monthly energy bills if CPS had competition.

Marc Whyte said Abbott is “raising a legitimate concern” because Texans have “grown tired of paying for waste.” And he said he agrees with the governor’s underlying principle that utilities and city budgets “owe the public real accountability.” Whyte said “The city having enough money to provide first class, basic city services is my number one concern,” (San Antonio Express-News)

Editorial: “Texas’ anti-NIMBY housing law is getting results” via Dallas Morning News – When the Texas Legislature passed Senate Bill 840, the goal was to boost the state’s housing stock in major cities. The law allows developers to build multifamily and mixed-use projects in districts zoned for commercial use without having to request a zoning change.

Many cities have been howling in protest since. Some have put up new rules to undermine SB 840. But even with those obstacles, SB 840 appears to be working. Since the law went into effect in September, it has directly facilitated more than 1,250 housing units and indirectly supported at least 7,235 units, according to a report by a bipartisan coalition that backs the law.

The nearly 8,500 homes that have been enabled by SB 840 are not all a done deal. Some have been approved, and others are pending. But one thing is clear: Developers want to build this housing. The coalition that authored the report — Texas Appleseed, the American Enterprise Institute and Texans for Reasonable Solutions — identified multifamily applications that would not have been allowed before SB 840 and other projects whose rezoning was made easier by the law. (DMN)

“Following ban, Texas hemp reps sue state for violating commerce protections” via The Texas Tribune‘s Stephen Simpson – Three members of the hemp industry are suing the state of Texas for violating commerce protections after it was announced last week that nearly all hemp-derived THC products are illegal.

On Friday, two hemp retailers and a distributor filed a lawsuit in the U.S. District Court for the Southern District of Texas against the Texas Department of State Health Services; Attorney General Ken Paxton; and the Galveston County criminal district attorney and sheriff, alleging that classifying hemp-derived substances as illegal violates the 2018 Farm Bill, which removed it from the federal Controlled Substances Act.

The complaint states that the reinstated definitions provide no delineation between lawful hemp and unlawful marijuana; that it’s preempted by the 2018 Farm Bill’s protections for the interstate hemp market; and that these classifications impose an unconstitutional burden on interstate commerce.

“For more than seven years, Texans have built a multibillion-dollar hemp industry under laws that define these products as legal hemp. Without any change to those laws, the State now says they’re Schedule I drugs, like heroin,” said Andrea Steel, lead counsel for the hemp industry in this case, in a news release (TX TRIB)

LOCAL GOVERNMENT  

Editorial: “As Dallas preaches budget cuts, it keeps hiding council spending” via Dallas Morning News – We’re entering budget season in Dallas, and you’ve started to hear from City Hall about the need to trim, trim, trim. Already city employees have been put on furlough, which to the rest of us meant locked doors at libraries, recreation centers and city offices.

But will the people telling us that we need to cut costs also make sacrifices? Are City Council members, who control the purse strings, watching their own public spending?

Council travel, for example, is largely a discretionary expense. But we don’t know how much the City Council has recently spent on travel because the city really doesn’t want that to become public. As we told you in May, the city of Dallas is suing the office of the Texas attorney general to keep secret travel records between 2024 and 2025 that we requested, including itineraries and expenses. The open records division of the attorney general’s office had directed the city to release documents. To date, Dallas has released only some expense tables stripped of details as well as a smattering of hotel bookings and Uber trips.

We’ve learned that our request isn’t the only one the city is fighting in court. In March, the city received separate requests for expenses and itineraries regarding Mayor Eric Johnson’s December trip to Montreal, Canada, and an international trip by council member Jesse Moreno in the spring. (DMN)

“Fort Worth weighs tax rate increase as lower property values widen budget hole” via Fort Worth Star-Telegram‘s Harrison Mantas – The city of Fort Worth has an even larger budget hole to dig itself out of after certified property values from the Tarrant Appraisal District came in significantly lower than previously expected.

A May 19 estimate projected the city needed to cut roughly $49.3 million from the budget to meet its expected revenue goals, however, new appraisal figures from TAD have increased that deficit to roughly $76.8 million, according to an Aug. 4 city council presentation.

The deficit is based on the assumption the city keeps its current tax rate of $0.67 per $100 of value the same, Fort Worth Lab director Christianne Simmons said speaking at the Aug. 4 council work session.

The city tried to be conservative with its revenue projections, but even those worst case scenarios turned out not to be conservative enough, City Manager Jay Chapa said speaking at the council work session. (FWST)

“Tarrant County delays vote on polling sites for November election” via Fort Worth Report – Tarrant County commissioners voted unanimously Tuesday to delay approving polling sites for the November midterm election, after agreeing that the lists proposed by the county elections administrator included too few locations.

Clint Ludwig, the administrator who oversees the county’s elections, proposed cutting the number of Election Day polling sites by 45% from the total used for the 2022 midterms, from 316 to 176. The proposal would have cut the number of early voting sites from the 50 used in 2022 down to 42 for this fall.

“I’m not comfortable with 176 election sites,” Republican County Judge Tim O’Hare said. “I think that’s way too large a cut.”

During the nearly seven-hour meeting Tuesday, Tim O’Hare made all attendees leave the room after some speakers continued talking after their allotted time to address the courtroom had run out and others shouted or used profanity. Former Democratic state representative Lon Burnam, speaking against the proposal, was arrested and physically carried from the courtroom by four sheriff deputies, who held him by his hands and feet. (Fort Worth Report)

“After City Council delays vote on water rate increase, SAWS cuts capital plan by $594M” via TPR‘s Jasper Kenzo Sundeen – San Antonio Water System’s plan to gradually increase water rates this summer failed in June when City Council asked for more time to decide on the rate adjustment.

Now, SAWS has updated its timeline and is asking the city to approve an increase in water rates starting in January. The city-owned utility has also reduced its budget for infrastructure projects by $594 million .

SAWS’ board approved a new $2.6 billion Capital Improvement Program and a rate adjustment to pay for it, on Aug. 4. The proposed multi-year rate adjustment that would raise the average residential monthly bill between $14.80 and $16.93 by 2029.

San Antonio officials have already said they plan to propose their first tax rate increase in more than three decades — on top of other budget cuts and higher fees . In a 6-5 vote, council members who sided against the utility cited leaks, lost water and a lack of trust in SAWS leadership, calling out Robert Puente. Cecilia Velasquez, SAWS Chief Financial Officer, outlined the utility’s next move during a board meeting Tuesday. Jelynne LeBlanc Jamison, Chairwoman, said several capital projects are now off the table or delayed. (TPR)

“Austin voters could decide $295M parks and libraries bond this fall” via Austin American-Statesman‘s Chaya Tong – Austin voters could decide a $295 million parks and libraries bond this fall. After months of debate, a divided Austin City Council voted Tuesday to advance a $295 million bond package focused on parks and libraries, all but ensuring the proposal will go before voters in November.

The council voted 8-3 to settle on the size and scope of the proposed bond election, directing city staff to prepare the measure for a final vote Thursday. If approved then, the proposal will appear on the Nov. 3 ballot. The proposed bond would dedicate $260 million to parks and recreation projects, funding renovations at facilities such as Mayfield Park and Doris Miller Auditorium, and $35 million to library improvements.

City estimates show it would eventually cost the typical taxpayer more than $40 annually as the city issues the debt. Marc Duchen and Council Members José Velásquez and Kirk Watson opposed the proposal, arguing that the resulting tax increase would compound Austin residents’ affordability pressures. Council Member Krista Laine, who previously opposed the package because she said it included too little funding for projects in her district, ultimately supported it after council members added $20 million for projects in far Northwest Austin. (AAS)

“Montgomery County selects potential site for $1 billion jail” via Houston Chronicle‘s Catherine Dominguez – Montgomery County taxpayers could soon be asked to finance a new jail costing as much as $1 billion to replace an aging and crowded facility in Conroe.

Montgomery County commissioners selected a potential site for a new jail and authorized Sheriff Wesley Doolittle to hire an engineering firm to begin designing the $1 billion facility.

The preliminary move comes as the county weighs whether to ask voters in November to borrow money for the jail and a separate justice center. Officials say the existing jail is nearly 40 years old, requires costly repairs and lacks enough permanent beds for the county’s projected growth. Commissioners must still determine the project’s scope, price and funding before the Aug. 17 ballot deadline.

In April, Wesley Doolittle presented Commissioners Court with an assessment of the jail at 1 Criminal Justice Drive in Conroe. The estimated $1 billion cost includes design, engineering and construction of a 543,109-square-foot building. It would include parking, staff areas, medical facilities and four or five floors of inmate housing. (HOU CHRON)

BUSINESS NEWS  

“In first post-IPO earnings, Starlink drives SpaceX revenue as AI, launches lag” via San Antonio Express-News‘s Brandon Lingle – SpaceX continued racking up losses in its first quarter as a public company, with its Starlink satellite communications business still the sole moneymaker. The Starbase company reported a net loss of $541 million in the three months through June, an improvement from a $1 billion loss a year ago. Revenue rocketed to $7.8 billion, up 92% from a year ago.

Despite results that beat Wall Street expectations, the company’s shares fell sharply in after-hours trading as investors digested news that spending on artificial intelligence infrastructure ballooned to $15.8 billion. On a call with analysts, CEO Elon Musk said he plans to increase SpaceX’s data center capacity from 2 gigawatts to as much as 10 gigawatts — giving it one of the world’s largest data center footprints.

“We’re building AI compute capacity at scale faster than anyone else, we believe, ​and we’re significantly improving our AI models,” he said. The spending is fueled largely by revenue from Starlink and AI. Starlink, which has eclipsed SpaceX’s launch business for years, did so again in the second quarter with profit of $1.66 billion, up from $1.19 billion a year ago, on revenue that jumped 66% to $4.29 billion. (SAEN)

“Google expands Austin investment with new Sail Tower nonprofit hub” via Austin American-Statesman‘s Karoline Leonard – Google launched a new nonprofit community hub at its new downtown offices after the company finally moved employees into Sail Tower after several years of delays.

The tech giant unveiled its new offices, occupying four floors of the high-rise, including a ground-floor event and meeting space available to local nonprofit and small businesses.

Jim Anderson, Google’s Texas leader and vice president of North American cloud business, said that the community hub will serve as a space to connect Austin residents with the company and provide resources that otherwise might be hard to find. (AAS)

“’Austin lets us build’: Investment giant to build tech-focused growth hub” via Austin American-Statesman‘s Travis Webb – Apollo Global Management has selected Austin for a new strategic growth hub focused on technology, innovation and new business development. A New York-based investment firm with more than $1 trillion in assets under management has selected Austin for a new strategic growth hub focused on technology, innovation and new business development.

Apollo Global Management stopped short of calling the Austin office a second headquarters, describing it as a “hub built around innovation, emerging technology and the next phase of the firm’s growth.” It said New York will remain its global headquarters. “Austin lets us build the next generation of Apollo and Athene , including challenger models for parts of our own business, with the talent, technology and business environment already in place,” Marc Rowan said in a statement. “That’s why we chose Austin and Texas.”

Athene, which has been part of Apollo since 2022, is the company’s retirement services and insurance business. Apollo, which had $1.03 trillion in assets under management as of March 31, already has a substantial presence in Texas. Apollo-managed funds own about 52% of San Antonio-based Rackspace Technology Inc., taking the cloud computing company private in a $4.3 billion deal in 2016 before returning it to the public markets in 2020.

Apollo’s decision to establish a hub in Austin comes as Texas continues gaining ground as a financial center. Charles Schwab moved its headquarters from California to Westlake in 2019 and has a major Austin campus. NYSE Texas opened in Dallas in 2025, Nasdaq Texas launched earlier this year, and the Texas Stock Exchange has received federal approval to begin operations. Elon Musk-led companies including SpaceX, the Boring Co. and X moved to the state, and Chevron Corp. moved to Houston in 2024. Kirk Watson said Apollo’s decision reflects well on the city’s workforce and its role in the innovation economy. (AAS)

TEXANS IN DC  

“AI is breaking out of Silicon Valley’s control. Will Ted Cruz care?” via Houston Chronicle‘s J.B. Branch – Sen. Ted Cruz has spent years insisting that the greatest threat to artificial intelligence is regulating it. Cruz believes the companies building the world’s most powerful AI systems should be allowed to experiment on their own and self-regulate. He believes so deeply in this philosophy that he named his signature AI bill after it, the SANDBOX Act.

Today, that name has become an uncomfortable reminder of how spectacularly wrong his approach has been. To understand why, it helps to understand what a “sandbox” actually is. In AI, a sandbox is an isolated digital environment where developers can push an AI system to its limits without letting it interact with the real world. If something goes wrong, the damage is supposed to stay inside the sandbox. Cruz’s SANDBOX Act is grounded in that thinking. Give AI companies freedom to experiment, exemptions from laws they choose, and trust that sandboxes will keep the public safe.

That premise has not aged well. In just the past two weeks, two companies widely regarded as leaders in AI — OpenAI and Anthropic — have acknowledged security failures involving the very sandboxes meant to contain their systems. OpenAI relaxed safety protocols, and one of its most advanced AI models carried out cyberattacks against Hugging Face, one of the most prominent open-source platforms. OpenAI did not know about the incident for days.

Days after OpenAI’s announcement, Anthropic announced that it had discovered something equally alarming. The company disclosed that their advanced model had breached their sandbox resulting in hacks into three organizations. Neither Anthropic nor the affected organizations even realized the intrusions had occurred until months later. Both companies described the incidents as unprecedented. Ultimately, both had to rely on a Chinese open source model to fix the cybersecurity patch. That means that ironically, the same Chinese open source models that Ted Cruz has lambasted as a threat to American AI innovation actually helped stop one of the most alarming AI cybersecurity incidents to date. (HOU CHRON)

TRUMP ADMINISTRATION  

“A federal judge lets DHS proceed with a border wall through a small Texas town’s levee system” via KXAN Austin – A federal judge is allowing the Department of Homeland Security to go ahead for now with plans to build a border wall through a levee system protecting a small Texas town on the border with Mexico, rejecting arguments by the town that the wall could lead to flooding.

The decision late Sunday marks a victory for the Trump administration as it races ahead with efforts to build a $46 billion wall along the U.S.-Mexico border from the Pacific Ocean to the Gulf of Mexico.

The town of Presidio, with a population of about 3,200 people, argued the wall could cause flooding and that the administration isn’t following the law as it rushes forward with its plans. The town’s development district sued earlier this year to stop the department from going forward with construction. (KXAN)

“Houston law firm with Trump ties gets $150M contract for child immigrant legal services” via AP – The Trump administration is planning to hire a Houston-based law firm with ties to the administration to provide legal services to unaccompanied children, according to a notice scheduled to be posted on the Federal Register this week.

The agreement will award a contract of $150 million to Burke Law Group, with a proposed time period covering one year starting Aug. 15.

One of the founders, Marcella Burkey, was a former Trump appointee to the Environmental Protection Agency and the Department of the Interior. Jeffrey Hall, a former employee and founding partner, was recently appointed and confirmed to serve in the EPA late last year.

The announcement comes days after the federal government allowed a contract to expire on Friday with a network of nearly 100 legal groups after not paying for their services for more than half a year. (AP)

QUICK LINKS  

SAEN: “Texas pharmacy recalls injectable peptides over life-threatening endotoxin risk” SAEN

TX TRIB: “Democrats in Congress say ICE lockup conditions are worsening” TX TRIB

Barron’s: “The New Wild West: Texas Experiments With Raw Capitalism” Barron’s

Times of San Diego: “SDG&E parent Sempra reports ‘strong’ second-quarter earnings led by Texas” Times of San Diego

AAS: “Bumble says Gen Z engagement remains a hurdle after weak quarter” AAS

SAEN: “NASA confirms SpaceX rocket slams into moon 18 months after sending a Texas-built lander there” SAEN

FWST: “Tarrant County postpones polling site cuts: What voters need to know” FWST

Bloomberg: “These Texas Builders Backed Trump. They’ve Had Enough” Bloomberg

TX MONTHLY: “In Houston, It Was Ken Paxton Versus the Emo Baddies” TX MONTHLY

TX TRIB: “Appeals court rejects Attorney General Ken Paxton’s effort to overturn Texas State Fair gun ban” TX TRIB

KXAN: “Settlement between Texas Children’s Hospital, state details nation’s first ‘detransition clinic’” KXAN

DMN: “A Texas community stopped a proposed data center in just 11 weeks.” DMN

POWER Magazine: “Texas Audit Could Delay 49.8 GW of Data Center Load, Cost Projects Up to $15 Billion, BNEF Warns” POWER Magazine

TX TRIB: “Sid Miller says Republicans will lose statewide elections due to rapid data center development, backlash” TX TRIB

KXAN: “Major data center company backs Abbott’s audit as Texas pauses new grid connections” KXAN

Spectrum News: “Parents argue new lawsuit against Ten Commandments in classrooms” Spectrum News

TX TRIB: “DA receives $2.5 million for Houston ICE shooting probe” TX TRIB

TX MONTHLY: “How McKinney’s Approval of a Mosque Became the Latest Front in the GOP’s Messaging War” TX MONTHLY

AAS: “Federal judge temporarily blocks Austin from reclaiming 170 previously released properties” AAS

HOU CHRON: “Houston investigating claim police held man for ICE during 2-hour traffic stop” HOU CHRON

KXAN: “Austin council members condemn ICE operation outside city hall that led to 3 arrests” KXAN

DMN: “Hotly debated $800M Preston Hollow towers project clears zoning hurdle” DMN

ABJ: “Texas Southern University president details $1.7B campus overhaul amid Centennial celebration” ABJ

FWST: “Weatherford ISD teacher arrested, accused of improper relationship with student” FWST

FWST: “Fort Worth decides fate of eyesore looming over south side neighborhood” FWST

FWST: “Fort Worth mother sentenced to life for death of 4-year-old daughter” FWST

AAS: “Hundreds of Austin city workers could see bigger raises” AAS

SA REPORT: “San Antonio FC offers free tickets, considers major league future” SA REPORT

FWST: “Major changes are coming to TAPPS football: Everything you need to know” FWST

AAS: “Arch Manning, Colin Simmons and the complete Texas Longhorns roster” AAS

EXTRA POINTS 

Recent Texas sports scores:
Wednesday 8/5
> MLB: Toronto 5, Houston 4
> MLB: Texas 6, San Francisco 6
> WNBA: Washington 96, Dallas 93
Thursday 8/6
None.
Friday 8/7
> MLB: San Diego 3, Houston 2
> MLB: Texas 2, Baltimore 1
> WNBA: Golden State 94, Dallas 76
Saturday 8/8
> MLB: Houston 6, San Diego 3
> MLB: Texas 5, Baltimore 1
> MLS: LA Galaxy 0, Dallas 0
> MLS: Houston 2, NE 0

Today / tonight’s Texas sports schedule:
> 12:35pm: MLB: Baltimore at Texas
> 2:30pm: Dallas at Minnesota (NBC)
> 6:20pm: MLB: Houston at San Diego
> 6:30pm: WNBA: Dallas at Washington

Tomorrow’s Texas sports schedule:
> 8:38pm: MLB: Texas at LA Angels
> 8:45pm: MLB: Houston at San Francisco

TEXAS SPORTS HEADLINES / LINKS

HOUSTON TEXANS: “Jadeveon Clowney returns to Texans on new deal” KXAN

HOUSTON TEXANS: “Exclusive: Why Texans OC Nick Caley is confident Stroud, offense will improve” HOU CHRON

DALLAS COWBOYS: “These 23 players are on the bubble to make the Dallas Cowboys’ 2026 roster FWST

TEXAS FOOTBALL: “9 key questions as Texas football opens 2026 summer camp” AAS

HOUSTON MEN’S BASKETBALL: “Chendall Weaver commits to Houston after gaining extra year of eligibility” KXAN