Houston delays vote on proposed $50 million deal to end The Woodlands annexation option

Houston City Council delayed a vote on a proposed agreement that would provide the city with approximately $50 million while permanently ending its future option to annex The Woodlands.

Council Member Edward Pollard requested the delay on August 26, 2026, so the proposal could receive additional review through the city’s Budget and Fiscal Affairs Committee. Houston had not approved the agreement as of August 28.

The Woodlands Township separately approved its side of the proposed third amendment to the Regional Participation Agreement in a 7-0 vote on August 26. The agreement would take effect only if Houston also approves it.

How the proposed payments would work

The proposed payment package totals approximately $50 million. The schedule calls for:

Approximately $22.63 million by December 31, 2026;
$9 million by the end of 2027;
$9 million by the end of 2028; and
Approximately $9.37 million by December 31, 2029.

Approximately $22.6 million would come from the existing Regional Participation Fund. The proposed amendment would release that balance for payment to Houston and end the long-term payment structure between the city and The Woodlands.

Community Impact reported that the remaining funding would include payments connected to the existing sales-tax arrangement and township cash reserves. The Regional Participation Agreement dates to 2007 and directs a portion of The Woodlands’ sales-tax revenue to Houston for regional public-works projects.

What Houston would give up

In exchange for the proposed payment package, Houston would agree to eliminate the possibility of future annexation of The Woodlands if the agreement’s terms are met.

The proposal would not remove The Woodlands from Houston’s extraterritorial jurisdiction. The Woodlands would remain in the city’s ETJ even if Houston approves the agreement.

The proposed contractual protection is separate from current Texas annexation law. State legislation enacted in 2017 ended forced municipal annexation and requires voter approval before larger cities can annex certain communities. Township officials have said the agreement would provide additional protection if state law changes in the future.

Why the council delayed action

Pollard’s requested delay gives council members time to examine the financial terms before deciding whether Houston should accept the proposal. The Houston Chronicle reported that Mayor John Whitmire and Council Member Sallie Alcorn supported additional fiscal review, but Houston’s approval remained pending.

The immediate consequence for Houston residents and taxpayers is continued uncertainty. The city has not yet accepted the proposed approximately $50 million, and the township’s vote alone does not immediately change Houston’s services, taxes, boundaries or governance.

What happens next

Community Impact reported that Houston City Council was expected to reconsider the proposal at its September 2, 2026, meeting after review of the financial implications. That date should be checked against the posted council agenda before publication or an update.

Residents and taxpayers should watch the council agenda, Budget and Fiscal Affairs Committee discussion and final vote for changes to the payment schedule, funding sources or annexation language. Until Houston takes final action, the amendment remains a proposal rather than an approved city agreement.

Sources

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