Texas Gov. Greg Abbott, R, has warned that he will cut state funding from the city of San Marcos if the City Council passes a resolution calling for a permanent ceasefire in Gaza and an arms embargo against Israel. The resolution, which is set for a vote on May 6, has sparked significant controversy, with Abbott condemning it as “anti-Israel” and “anti-Texas,” while supporters say it’s a way to challenge big government over an international issue.
Governor’s letter to San Marcos mayor
In an April 29, 2025, letter to San Marcos Mayor Jane Hughson, Abbott expressed strong disapproval of the resolution, which advocates for a ceasefire in Gaza and recognition of Palestinian sovereignty. He specifically highlighted the failure of the council to condemn Hamas for the Oct. 7 massacre that triggered the war. Abbott noted that the resolution did not mention the actions of Hamas, which he described as a critical issue when considering the broader Middle East conflict.
“Israel is a stalwart ally of the United States and a friend to Texas,” Abbott wrote in his letter. “I have repeatedly made clear that Texas will not tolerate antisemitism. Anti-Israel policies are anti-Texas policies.” His letter underscores the deep political divide over U.S. foreign policy toward Israel and the ongoing conflict between Israel and Palestinian factions in Gaza.
Abbott’s letter stated that his administration had consistently taken steps to oppose the Boycott, Divestment, and Sanctions (BDS) movement, which targets Israel economically. This includes signing a law banning Texas government entities from supporting BDS and requiring contractors to certify that they do not participate in boycotts against Israel. The law also states that any government entity that violates these provisions risks losing state funding.
Abbott posted on X, “Anti-Israel policies are anti-Texas policies.”
The Texas law that could allow city funding to be stripped
The Texas law, specifically Texas Code § 2271.002, mandates that any state government entity entering into a contract worth $100,000 or more must certify that they do not engage in a boycott of Israel. Failure to comply with the law could result in the termination of state funding. In his letter, Abbott said his office was reviewing active grants to San Marcos to ensure compliance. If the city council moves forward with the resolution, Abbott warned that his office would not enter into future grant agreements with the city and would also terminate any active grants.
Council members defend resolution
San Marcos City Council Member Alyssa Garza, who introduced the resolution, said the city of San Marcos could not rely on the state or federal government “to stop a genocide.” At an April 15 City Council meeting, Garza spoke about the resolution. She framed it as a response to what she described as the failure of larger governments to address the situation in Gaza.
“[It’s] clear to me that when they fund bombs, but cut aid for housing and education and so on here, that’s connected. When they silence protests here and crush dissent abroad, that’s connected. When they defund local governments and nonprofits and they call us ‘distractive’ for standing up, that’s absolutely connected,” Garza said.
The resolution from the city reads in part that it will, “support an end to U.S. military funding and sales to the State of Israel, and an end to federal and local tax dollars contributing to the humanitarian catastrophe and genocide in Palestine.”
The resolution also identifies money from San Marcos that went toward Israel according to the United States Campaign for Palestinian Rights. The resolution states, “In 2024 alone, the U.S. sent Israel $18 billion to bankroll 70% of the ongoing genocide. According to the United States Campaign for Palestinian Rights, $1,405,468,510 from Texans’ tax dollars went to Israel’s purchase of weapons. $4,434,675 of this came from San Marcos residents’ taxes.”
Financial implications for San Marcos
As the City Council prepares for the May 6 vote, the dispute over the resolution is likely to continue to provoke strong reactions from both local and state officials. If the resolution passes, San Marcos could face the loss of millions of dollars in state funding, potentially affecting future projects and initiatives.
“If the City Council adopts this Resolution, the Office of the Governor will not enter into any future grant agreements with the City and will act swiftly to terminate active grants for non-compliance. I will further direct all other state agencies to review agreements with the City for possible breach,” Abbott said.
