Texas Gov. Greg Abbott on Tuesday accused the City of Dallas of driving AT&T out of downtown because of public safety and homelessness issues, claims the company itself has not made, and said the state will investigate whether the city has violated Texas law by failing to fully fund and staff its police department.

At a campaign event in Fort Worth on Tuesday, the governor cited the city’s failure to fully fund and staff the police department and “contain a homeless problem” following AT&T’s announcement on Monday that it’s officially moving its global headquarters from Downtown Dallas to Plano in the next three years.

Abbott made the allegations during a news conference at the Fort Worth Police Officers Association headquarters as he accepted their endorsement in his bid for a fourth term.  

“Dallas is bearing the brunt or burden of their failure to have a fully staffed law enforcement, their failure to contain a homeless problem,” Abbott said. “Local leaders, it is their responsibility to ensure that homeless people are not endangering their citizens. It is the responsibility of local leaders to fully fund their local law enforcement. Because Dallas did not do that, AT&T is now moving out of Downtown Dallas.”

“Business leaders have praised our successes in our urban core, which include expanded police presence and our remarkable success relocating people experiencing homelessness. But ultimately, this was a decision that came down to AT&T’s desire for a new horizontal location with significant acreage for development. AT&T’s transition will be gradual, and the company will remain part of our city’s fabric in the years ahead,” Dallas City Manager Kimberly Bizor Tolbert said in a statement.

AT&T’s headquarters had been in Dallas since 2008. Despite the move, the company said it still believes the DFW metroplex is the right place to continue to thrive.

“But if you go back to the law that I signed,” Abbott said, “we will defund any city that defunds the police.”

Under that law, if the governor’s Public Safety Office determines a city has defunded its police department, the city will be subject to tax rate limitations, lose access to certain tax revenues, and be subject to other budgetary requirements and limitations.  

“We’re going to be looking into what the city of Dallas has or has not done with regard to funding the police,” said Abbott. “See if they’re in violation of that state law that I signed.” 

Dallas police funding and budget

According to the City of Dallas, nearly 65% of the City’s General Fund budget supports public safety-related activities, including police, fire, court services, and emergency services.  

In September 2025, the Dallas City Council approved a record $5.2 billion city budget with $63 million in additional funds for the Dallas Police Department for hiring 350 recruits, raising starting pay to over $81,000. Their goal is to end the fiscal year with 3,424 officers. It would be the highest number since 2016, the city said.

Voters passed Proposition U in late 2024, requiring the city to maintain at least 4,000 officers. The department currently has over 3,200 officers, according to the city.

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