On September 30, 2026, Texas Attorney General Ken Paxton issued an opinion confirming that Type A general-law municipalities in Texas can accept donations of property, including money, for municipal purposes. This ruling affects cities like Whitney, which are looking to fund projects such as road repairs and police equipment through community donations.
The opinion, identified as KP-0537, addresses a request from R. David Holmes, the Hill County Attorney. Holmes sought clarification on whether such municipalities have the authority to accept donations, which could help not only Whitney but also other local governmental units across Texas.
Background
Type A general-law municipalities are local governments in Texas that operate under specific statutes outlined by the state. Unlike home-rule municipalities, which have broader powers, general-law municipalities possess only the powers explicitly granted to them by state law. This limitation raises questions about their ability to accept donations.
In his request, Holmes indicated that the City of Whitney was interested in accepting donations to support municipal needs. The inquiry highlights a broader issue faced by many small cities in Texas that rely on community support to enhance local services and infrastructure.
The Ruling
The Texas Attorney General ruled that Type A general-law municipalities do have the authority to accept donations, including money, as long as these donations are used for municipal purposes. Paxton stated, "Subsection 51.015(a) provides Type A general-law municipalities with the authority to accept donations of property, including money, so long as it is done for a municipal purpose." This ruling clarifies that the term "property" under the Local Government Code includes money, thus allowing municipalities to receive financial donations.
Paxton's opinion elaborated on the definitions of terms like "take," "hold," and "purchase" in the context of municipal authority. He concluded that the term "take" encompasses the ability to accept donations. The opinion also referenced various statutes that demonstrate the Texas Legislature's intent to allow municipalities to receive gifts for specific purposes, reinforcing the ruling's legitimacy.
Impact
This ruling is significant for Type A general-law municipalities throughout Texas, as it opens the door for local governments to seek donations to support essential services and infrastructure projects. Cities can now actively solicit funds from residents and businesses to enhance public safety, improve roads, and develop community programs.
By allowing municipalities to accept donations, the ruling may lead to increased community involvement in local governance. It empowers citizens to contribute to their city's development and well-being, potentially leading to improved public services and infrastructure. This decision could also set a precedent for future interpretations of municipal authority regarding donations and gifts.
What's Next
While this opinion provides clarity on the issue, municipalities must ensure that any accepted donations comply with the requirement that they are used for municipal purposes. There is no indication that this ruling will be appealed, and it stands as a guiding principle for Type A general-law municipalities in Texas moving forward.