Judge blocks City of Austin’s attempt to reclaim land from property owners, citing constitutional violations

A federal judge has blocked the City of Austin’s effort to reclaim land near the Bee Caves Armory, citing potential violations.

AUSTIN, Texas — A federal judge on Tuesday temporarily blocked the City of Austin from taking back control of about 170 properties that were removed from the city’s extraterritorial jurisdiction, or ETJ, according to court documents obtained by KVUE.

A group of property owners filed a lawsuit against the city in June 2026. They claim Austin wrongly changed its mind about the ETJ releases for properties near the Bee Caves Armory. The owners claim the city didn’t warn them or give them a chance to challenge the decision. 

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In retraction letters sent in March 2026, the city said the properties couldn’t leave the ETJ because they’re within 5 miles of the armory, which the city considers a military base, saying the releases were allegedly “released in error.” 

Court documents state that U.S. District Judge Robert Pitman granted the property owners’ request for a preliminary injunction. That means the city can’t enforce its March letters while the lawsuit continues to play out.

Pitman said the owners are likely to win on two parts of their case. First, he said the city may have violated the owners’ rights by taking away the ETJ releases without a hearing or warning. Second, he said the city may not have had the legal power to cancel the completed releases.

For now, the City of Austin can rely on the March retraction decision to enforce city ETJ regulations on the affected properties.

Pitman didn’t decide whether the Bee Caves Armory qualifies as a military base under Texas law. The lawsuit remains pending, but the order keeps the earlier ETJ releases in effect until a final ruling.