Texas AG orders audits of 100+ cities over alleged tax increase violations

Texas Attorney General Ken Paxton has sent letters to over 100 municipalities, including Houston, San Antonio, Laredo, and Dallas, ordering audits for alleged non-compliance with a 2025 law requiring audits and reports before tax increases exceeding a certain rate. The move escalates state-local tensions over fiscal autonomy, with legal challenges likely. This is a state-level enforcement action with potential political and fiscal implications for Texas cities.