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Indoor Things To Do In Austin – 40+ Fun Ideas For All Ages

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Indoor Things To Do In Austin – 40+ Fun Ideas For All Ages


Indoor Things To Do in Austin

Jump to Category: Free | Museums | Arcades | Escape Rooms | Theaters and Live Entertainment | Sports & Recreation | Creative & Educational | Breweries & Adult Fun |

Whether you’re escaping triple-digit heat or staying dry during a rainy afternoon, Austin offers plenty of indoor fun for families, couples, and solo adventurers. From museums and arcades to live performances and immersive escape rooms, this list covers 60 of the best indoor things to do in Austin.


Editor’s Note: Our staff works hard to bring you the most up-to-date information. However, please note that all information is subject to change. As always, please verify with the organizer before making plans.

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Free Indoor Places in Austin to Explore on a Budget

Staying entertained in Austin doesn’t have to cost a dime. These free and low-cost indoor spots are perfect for rainy days, hot afternoons, or spontaneous outings that don’t break the bank.

Austin Central Library

The Austin Central Library is a must-visit for anyone looking for fun indoor things to do in Austin, especially if you have kids with you. Explore six floors of unique architectural design, browse a massive collection of books and media, or attend one of the many engaging public programs and exhibitions.


Harry Ransom Center

The Harry Ransom Center is a fascinating museum on the UT Austin campus. You can escape the heat while exploring priceless literary and cultural artifacts, including one of the few Gutenberg Bibles in the world and the earliest-known photograph.

If you’re a fan of the arts and humanities, this place will be a gold mine of exploration.


Texas Capitol Tours

A free guided tour of the Texas Capitol building is an excellent indoor activity in Austin, providing a captivating look at the state’s political history and beautiful architecture.

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It’s also a great way to escape the elements and learn about Texas heritage while exploring the ornate chambers, rotunda, and historical exhibits inside. The tour is especially great if you’re taking someone new to the city around.


Best Indoor Museums in Austin for Art, History, and Family Fun

Austin’s museums are home to world-class art collections, interactive exhibits, and rich Texas history. No matter if you’re a history buff or a fan of animals, you’ll find something to do solo, with kids, or on a date in these indoor cultural spots.

If museums are your vibe, explore even more options in our comprehensive guide to Austin museums.

The Contemporary Austin – Jones Center

The Contemporary Austin – Jones Center is a downtown art space that’s a fantastic choice for what to do in Austin when it’s hot.

You can escape the Texas heat and immerse yourself in thought-provoking, modern art installations and exhibitions that change frequently, providing a fresh and exciting experience with every visit.

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  • Where: 700 Congress Ave., Austin, TX 78701
  • How much: $10 for adults | $5 for seniors and students/ educators w/ ID | Free for 18 and under, military w/ ID, and members | Free admission all day on Thursdays

Blanton Museum of Art

The Blanton Museum of Art is a premier destination for Austin indoor entertainment, featuring an impressive collection of European, Latin American, and contemporary American art. It offers a cool, quiet retreat to appreciate world-class masterpieces and fascinating rotating exhibitions.


Bullock Texas State History Museum

Indoor things to do in Austin - Bullock Texas State History MuseumIndoor things to do in Austin - Bullock Texas State History Museum

Image Credit: Bullock Texas State History Museum

The Bullock Texas State History Museum offers three floors of interactive exhibits that bring the state’s storied past to life. Kids and adults alike will love exploring the engaging displays, watching a film in the IMAX theater, or experiencing the multi-sensory Texas Spirit Theater.

  • Where: 1800 Congress Ave., Austin, TX 78701
  • How much: $15 for adults | $11 for seniors, military, and students | $9 for youth 9 – 17 | Free for kids 5 and under | Free admission on first Sundays of every month

Museum of Ice Cream

Indoo things to do in Austin | Museum of Ice CreamIndoo things to do in Austin | Museum of Ice Cream

Image credit: MUSEUM OF ICE CREAM

The Museum of Ice Cream is a whimsical, interactive experience that makes for a great indoor date idea in Austin, either with a special someone, with friends, or with family.

It’s a playful and colorful escape from the ordinary, where you can take fun photos, jump into a pool of sprinkles, and of course, enjoy some delicious ice cream.


Texas Toy Museum

The Texas Toy Museum is an ideal rainy day activity in Austin for all ages, offering a nostalgic trip down memory lane. This charming museum showcases a massive collection of toys from different eras, from vintage video games to action figures, providing a fun and fascinating look at pop culture history.

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Neill-Cochran House Museum

The Neill-Cochran House Museum is one of the most unique indoor places to go in Austin, offering a fascinating glimpse into the city’s past. This beautifully preserved historic home provides a cool, quiet retreat where you can explore period rooms and learn about the lives of early Texans.


Museum of the Weird

Ready to embrace your strange side? Step into the Museum of the Weird, one of the best indoor attractions in Austin for anyone seeking something truly different. Unlike traditional museums, this is a classic “roadside attraction” filled with oddities, strange artifacts, and creatures of cryptozoology like the famous Minnesota Iceman.

What makes it so unique is its authentic, old-school vibe and the live sideshow performance that comes with your ticket.


Museum of Illusions

The Museum of Illusions offers a unique and captivating experience. Unlike a typical museum, this one is completely interactive, encouraging you to step inside a collection of mind-bending optical illusions.

It’s a perfect spot to take fun, gravity-defying photos and get a behind-the-scenes look at how your brain can be tricked, making for an incredibly engaging and memorable outing for all ages.

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Wonderspaces

Indoor things to do in Austin | WonderspacesIndoor things to do in Austin | Wonderspaces

Image credit: Wonderspaces Austin

For a truly out-of-this-world experience that will transport you out of the Texas heat, head to Wonderspaces. This is a constantly changing collection of interactive and immersive art installations from artists around the world.

What makes it unique is that you are invited to step inside the art, whether you’re walking through a kinetic light show or donning a VR headset, making it a playful, thought-provoking, and incredibly photogenic experience.


Top Arcades and Indoor Game Centers in Austin for All Ages

Looking for indoor fun in Austin that’s high-energy and low-hassle? These arcades and entertainment centers are perfect for families with kids, teens needing a break from the heat, or adults looking for nostalgic game-night vibes.

Cidercade Austin

Indoor things to do in Austin | CidercadeIndoor things to do in Austin | Cidercade

Image credit: Cidercade Austin

Cidercade Austin is the perfect answer to the question of where to go in Austin when it rains. Here, you’ll find a massive arcade with hundreds of games.

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The best part is that for a single admission price, you can play unlimited retro and modern arcade games, pinball machines, and more, all while enjoying a wide selection of ciders and other beverages.


Pinballz Arcade

Pinballz Arcade is a classic choice for fun indoor things to do in Austin. You’ll find a massive collection of new and vintage arcade games and pinball machines. You can spend hours playing games, from classic favorites to modern hits, and it is a great option for all ages.


High 5

Indoor things to do in Austin | High 5Indoor things to do in Austin | High 5

Image credit: High 5 Austin

High 5 Austin is a premier entertainment center and is one of the best things to do in Austin indoors for all ages. Enjoy one-stop-shop for fun, featuring bowling lanes, a two-story laser tag arena, a massive arcade, and a full-service restaurant.


Main Event Entertainment

Main Event Entertainment is an ideal destination, especially if you’re with a group. This massive entertainment center features state-of-the-art bowling, a multi-level laser tag arena, and a huge arcade, providing a thrilling and action-packed way to spend a day inside.

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Dave & Buster’s Austin

Dave & Buster’s combines a full-service restaurant with a massive arcade, making it the perfect place to enjoy a meal and then challenge friends to classic and modern arcade games. An afternoon here will never be boring.

  • Where: Multiple locations in Austin
  • How much: Varies

Highland Lanes

For a dose of classic nostalgia, head to Highland Lanes, the perfect spot for rainy day activities in Austin. This is a beloved “Old Austin” relic isa timeless, no-frills bowling alley that has been a community staple for nearly 50 years.

They also have some of the best burgers in the area over at Lebowski’s Grill.


Blazer Tag

Ready to get your adrenaline pumping while beating the heat? Head to Blazer Tag! It’s the largest one in Texas, with a massive three-story layout of ramps, bridges, and towers that makes for a thrilling, strategic game.

This beloved “Old Austin” institution offers an action-packed escape for everyone, from a solo challenge to a large group outing, complete with a classic arcade to keep the fun going.


Escape Rooms in Austin for Rainy Day Fun or Group Challenges

Looking for an adrenaline rush without leaving the building? Austin’s escape rooms offer immersive, themed experiences that challenge your problem-solving skills. These would be perfect for team-building, date night, or indoor birthday adventures.

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The Escape Game Austin

The Escape Game Austin is a fantastic choice for an indoor family activity in Austin. You’ll have to divide into teams to work in a variety of themed rooms to solve puzzles and find clues, making it a perfect way to bond and have fun while beating the clock.

This is also an epic idea for a friends day out. Just make sure to make up in the end.


Escape Hour Austin

Escape Hour Austin is a top choice for Austin indoor entertainment, offering highly immersive and technologically advanced escape rooms. Their games feature automated puzzles and a unique hint system that keeps the focus on teamwork and a seamless, high-tech experience.


Project Panic

Gather your group and head to Project Panic, one of the most thrilling destinations for Austin indoor entertainment. This experience is known for its incredibly high-quality set design and a cinematic feel that truly immerses you in a high-stakes scenario.

With intricate puzzles and professional-grade props, you’ll be so engrossed in the storyline that the “panic” becomes a part of the fun as you race against the clock.

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Theaters & Live Entertainment in Austin to Enjoy Indoors

Rain or shine, Austin’s vibrant performing arts scene delivers everything from improv comedy and independent films to live jazz and offbeat plays. These indoor venues are perfect for couples, creatives, and anyone who loves local entertainment with a cultural twist.

Alamo Drafthouse Cinema

Ready to escape the heat and settle in for a fantastic film? Look no further than Alamo Drafthouse Cinema.

Here, there will be no distractions from the cinematic masterpiece you’ve queued up to watch with their famous “no talking, no texting” policy. You can even get a full meal and a craft beer delivered right to your seat.

  • Where: Various locations in Austin
  • How much: Varies

The Hideout Theatre

For a night of spontaneous fun, head to The Hideout Theatre, an unmissable destination for indoor activities in Austin. The Hideout specializes in improvisation, with shows created on the spot based on audience suggestions.

It’s a truly interactive experience where every performance is a one-of-a-kind event, guaranteeing a night of fresh and unpredictable laughter.


Paramount Theatre

For a truly glamorous night out, visit the historic Paramount Theatre, one of the best indoor attractions in Austin. This beautifully restored landmark from 1915 is sure to transport you to a bygone era of entertainment.

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The Paramount hosts an incredible variety of shows, from stand-up comedy and live concerts to classic films and Broadway productions, all under its stunning, ornate ceiling. So, every week, you’ll have something new to look forward to.


Violet Crown Cinema

Looking for a more intimate and sophisticated movie night? Violet Crown Cinema is a perfect indoor date idea in Austin, offering a luxurious and distinct alternative to mainstream theaters.

Its unique features include reserved, stadium-style seating with plenty of legroom, a full bar and lounge, and a thoughtfully curated selection of independent, foreign, and documentary films.


Elephant Room

For a truly authentic and soulful night out, head to the Elephant Room, a legendary spot for Austin indoor entertainment.

This cozy, intimate jazz club tucked away in a downtown basement is the perfect place to escape the city noise and immerse yourself in the rich sounds of live jazz, with a focus on local talent and a low-key atmosphere that feels like a true Austin secret.

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Indoor Sports & Recreation in Austin: Climbing, Skydiving, and More

Beat the heat without slowing down. These indoor sports and adventure spots in Austin offer everything from bouldering and axe throwing to virtual skydiving. Great for active families, date nights, or anyone who needs to move rain or shine.

Austin Bouldering Project

Indoor things to do in Austin - Bouldering ProjectIndoor things to do in Austin - Bouldering Project

Image Credit: Austin Bouldering Project FB Page

Ready for a challenge that’s both fun and physically engaging? Look no further than Austin Bouldering Project, a fantastic option for fun indoor things to do in Austin. This is one of the largest bouldering-only gyms in the world, with walls and routes for every skill level.

It also offers a low-pressure, social atmosphere since there are no ropes or harnesses required, making it an incredibly accessible and welcoming spot to try something new and exciting.

  • Where: Multiple locations in Austin
  • How much: Varies by package

iFLY Indoor Skydiving

Ever wanted to fly? iFLY Indoor Skydiving makes it a reality, offering one of the most thrilling indoor family activities in Austin. Here, you’ll experience the exhilarating sensation of freefall in a state-of-the-art vertical wind tunnel, all with the guidance of a certified instructor.


Axe Escape Austin

Indoor things to do in Austin | Axe Escape - Axe Throwing AustinIndoor things to do in Austin | Axe Escape - Axe Throwing Austin

Image credit: Axe Escape – Axe Throwing Austin

For a high-tech twist on a classic activity, head to Axe Escape Austin, one of the most fun indoor things to do in Austin. This venue stands out for its state-of-the-art interactive projected targets, which allow you to play a variety of games like Tic-Tac-Toe and Zombie Hunter while you throw.

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You can also test your precision with a unique selection of throwing tools beyond just axes, including tomahawks and even ninja stars.


Dirdie Birdie

For an experience that’s a perfect blend of fun and sophistication, visit Dirdie Birdie, a high-design masterpiece with 12 wildly creative holes, each an artistic installation in its own right.

What makes it truly unique is how it combines this visually stunning course with a craft cocktail bar and a chef-driven menu, making it an ideal spot for a date or a fun night out that’s as delicious as it is playful.


Creative & Educational Indoor Activities in Austin for All Ages

From art workshops to hands-on science, Austin offers plenty of enriching indoor activities that are both fun and educational. This is the perfect idea for bonding with the kids, friends, or even a date.

Thinkery

For a truly fun and educational day with the kids, head to Thinkery, the perfect destination for Austin indoor family activities. Unlike a traditional museum, Thinkery’s focus is entirely on hands-on, play-based learning in STEAM (science, technology, engineering, art, and math).

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Here, kids can splash around in the water lab, build amazing creations in the Innovators’ Workshop, and explore ever-changing exhibits that encourage them to learn by doing. It’s a place where both children and adults can get their hands dirty and have a blast discovering something new together.


Cordovan Art School

Cordovan Art SchoolCordovan Art School

Image credit: Cordovan Art School

Cordovan Art School is a fantastic option for indoor places to go in Austin that offers a relaxing and unique experience. Here, the focus on making art accessible for everyone, with a wide range of walk-in workshops and classes for both adults and children.

It’s the perfect place to explore your creative side, learn a new skill like painting or pottery, and leave with your own beautiful creation—no long-term commitment required.


Board & Brush Creative Studio

For a unique and memorable outing that goes beyond dinner and a movie, consider Board & Brush Creative Studio, one of the best indoor date ideas in Austin. This studio offers a fun, instructor-led workshop where you and your partner can create a rustic, farmhouse-style wooden sign to take home.

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It’s also completely beginner-friendly, and you’re encouraged to bring your own bottle of wine to sip on while you paint, making for a relaxed and creative evening you’ll both love.

  • Where: Multiple locations in Austin
  • How much: Varies

Ceramic Lodge

Ceramic Lodge in Round Rock is the perfect answer for rainy day activities in Austin. What makes this spot so special is its vast, walk-in friendly studio filled with an incredible selection of pre-made ceramics—from mugs and figurines to home décor—all ready for you to paint.

It’s a wonderfully therapeutic experience where you can simply pick your piece, choose your colors, and get lost in the joy of creating a personalized masterpiece.


Book People

For a relaxing and enriching day, get lost in the shelves of BookPeople. It’s Austin’s largest independent bookstore and a true literary hub. What makes it so unique is its vibrant community atmosphere, with a packed calendar of author events, readings, and a cozy cafe where you can sit and read.


Bars, Breweries & Indoor Fun for Adults in Austin

Enjoy a bunch of adult fun like never before with Austin’s wide variety of indoor activities just for adults. Sip craft brews, throw axes, compete with your friends in escape rooms, and more. Check these out for nights out, low-key afternoons, or simply dodging the weather in style.

The Brewtorium

The BrewtoriumThe Brewtorium

Image credit: The Brewtorium Brewery and Kitchen

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For a lively and welcoming spot to spend an afternoon or evening, head to The Brewtorium, a top choice for Austin indoor entertainment. This full-fledged brewpub has a scratch-made kitchen that offers a delicious menu of modern pub fare to complement its award-winning beers.

Its large, open hall and communal-style seating create a vibrant, social atmosphere that’s perfect for groups. It even has axe throwing on-site, making it a one-stop shop for food, drinks, and fun.


The Roosevelt Room

For a truly sophisticated evening , step into The Roosevelt Room. Here, you’ll go on a journey through the history of the cocktail. Its unique, 150-drink menu is a living timeline of mixology, with each drink representing a different historical era.

The atmosphere is also elegant and inviting, and with their highly knowledgeable staff, you’ll not only enjoy an expertly crafted drink but also learn its fascinating story, making for a memorable and educational night out.


Wonder Bar

When the weather turns, head to Wonder Bar, a vibrant, immersive wonderland designed for social media and pure fun. What makes it truly unique is its series of wildly creative, themed rooms and interactive installations, from a glowing disco wall to a vibrant ball pit.

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Cape Bottle Room

Cape Bottle RoomCape Bottle Room

Image credit: Cape Bottle Room

For a truly unique and intimate evening, consider Cape Bottle Room, a perfect indoor date idea in Austin. What makes this cozy spot so special is its exclusive focus on South African wines, making it the only place in the city where you can discover a curated selection of these fantastic and often-overlooked vintages.


Looking for fun things around ATX? Check out our weekly updates with the best picks for Things to Do in Austin this Weekend — all curated by a local.

Travel on your mind? Check out Indoor Things to Do in Houston and Indoor Things to Do in San Antonio! 

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Austin, TX

New Texas law tightens rules for autonomous vehicle companies, including Waymo

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New Texas law tightens rules for autonomous vehicle companies, including Waymo


Self-driving cars have become a common sight on Austin streets, but a new Texas law is adding tougher requirements for the companies behind the wheelless vehicles.

Senate Bill 2807 imposes stricter rules on autonomous vehicle companies operating in the state, including state authorization, emergency response plans for law enforcement, and a public portal where residents can verify operators and file safety complaints.

The changes come as Austin continues to track incidents involving autonomous vehicles. The city’s autonomous vehicle dashboard shows 75 incidents in 2026, including a collision, eight near misses, and seven incidents of ignoring police direction.

Attorney Drew Gibbs, a partner at Slingshot Law, said one crash involved a Waymo vehicle.

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“There was a T-bone collision. A pretty serious T-bone collision where a Waymo just crashed into the side of my client’s vehicle,” Gibbs said.

ALSO| Waymo files voluntary software recall over flooded-lane risks on high-speed roads

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One of the incidents of ignoring police direction happened during the mass shooting on West Sixth Street back in March, when three people died, and 15 others were injured.

Austin Police Association President Michael Bullock said autonomous vehicles can struggle in unusual situations.

“It didn’t impede on anything in the moment, but it’s not necessarily uncommon where these vehicles don’t quite know how to deal with these one-off scenarios,” Bullock said.

The new law requires autonomous vehicle companies to be authorized by the state, to provide an emergency response plan for law enforcement, and to participate in a public-facing portal that allows the public to verify operators and submit safety complaints.

Kara Kockelman, a professor of transportation and engineering at the University of Texas at Austin, welcomed the added oversight.

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“I’m glad that the state is taking this a bit more seriously now,” she said. “It’s important not to just let others slip in without kind of meeting those basic minimums.”

Bullock said the emergency planning requirement may not make a major difference in fast-moving situations. Asked how impactful it is to have a fully laid out emergency response plan, Bullock said, “These plans are great, but it takes time to work through all of those versus the immediacy of having someone behind the wheel.”

The four autonomous vehicle companies operating in Austin — Waymo, Zoox, AV-Ride, and Tesla — are all state-authorized.

The Texas DMV said an autonomous vehicle company can lose its authorization to operate in Texas if the agency deems the vehicles are operating in a way that endangers public safety.

Waymo was contacted for comment, but had not responded.

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Austin, TX

Jane Nelson, Texas’ top election official, stepping down as Secretary of State

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Jane Nelson, Texas’ top election official, stepping down as Secretary of State


Texas Secretary of State Jane Nelson said Tuesday she will leave the post next month.

What we know:

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In a statement, Nelson said her resignation will be effective July 17 but did not provide a reason for the departure.

“It has been an honor to serve the people of Texas in this role,” Nelson said. “My time as Secretary came at an important moment for Texas, and I am proud of what we have been able to accomplish as an agency in under four years.”

Nelson has served in the role since 2023.

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Among other things, the Secretary of State oversees elections and business filings in the state and serves as the chief diplomat of Texas.

View of Texas State Senator Jane Nelson, during the 80th Texas Legislature, on the floor of the Senate at the Texas State Capitol, Austin, Texas, January 22, 2007. (John Anderson/The Austin Chronicle / Getty Images)

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What they’re saying:

Texas Gov. Greg Abbott described Nelson as extraordinary.

“I am deeply grateful for her long and loyal service and outstanding leadership. She has represented our state with grace and honor across the globe, and Texas is better because of it,” Abbott said. “Cecilia and I wish her all the best in the next chapter of her distinguished career.”

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Dig deeper:

According to the Secretary of State’s office, Nelson has presided over seven statewide elections during her tenure with a cumulative 27 million ballots cast and broke a record with more than 3 million active business filers.

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Nelson also served three decades in the Texas Senate, where she remains the longest-serving Republican in state history.

The Source: Information in this story came from the Texas Secretary of State’s office.

TexasElectionPoliticsTexas Politics2026 ElectionsAustinGreg Abbott
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Austin, TX

Austin OKs $2.35 billion of revenue bonds, eyes GO bond election

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Austin OKs .35 billion of revenue bonds, eyes GO bond election


Austin Mayor Kirk Watson wants the city council to hold off on a bond measure this year to set up a better proposal in 2028.

Michael Dorman

Austin, Texas, is revving up to sell $2.35 billion of debt for a convention center and a wastewater treatment plant, while a legal battle continues over bonds to help finance a light rail system. 

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The bond boom comes as the city council voted on Thursday to pursue the development of a $390 million baseline general obligation bond package for the November ballot despite a call by Mayor Kirk Watson to wait until 2028.

“I believe we can and we should bring forward significant investments in the future,” he said. “In fact, if we restore compliance with our financial policies and we maintain the discipline we actually will have greater future capacity to do more for this community in 2028.”

A bond election would follow the rejection of a maintenance and operations property tax hike by 63% of city voters in November. In the wake of the defeat, Austin officials took steps to better manage its finances, including pursuing a citywide performance and efficiency audit of city operations.

The city, which last held a successful GO bond election in 2022 for $350 million of debt for affordable housing, had $1.03 billion of unissued voter-approved GO bond authorization as of the Sept. 30 end of fiscal 2025. Last year, Austin sold $796 million of GO bonds and certificates of obligation in a deal rated triple-A with stable outlooks by S&P Global Ratings and Fitch Ratings.

On Thursday, the city council signed off on a $34.5 million wrongful prosecution and conviction settlement with four individuals to be financed through the sale of non-voter-approved GO bonds. 

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The council approved up to $1.35 billion of special tax revenue bonds on May 21 for a $1.6 billion project to replace the city’s now-demolished convention center with a facility that will increase rentable event space to 620,000 square feet from 365,000 square feet.

Construction site for Austin convention center project
Construction site for Austin’s convention center project, shown in March. The city council approved up to $1.35 billion of special tax revenue bonds for a bigger convention center.

Rich Saskal

The bonds are backed with revenue from certain city hotel occupancy taxes and incremental state tax revenue generated within a project finance zone the city established in 2024. Amounts and timings for issuing the debt are being determined, according to the city, which filed a petition with a Travis County District Court for an expedited validation of the bonds. 

An ordinance approved in October to issue up to an initial $650 million of bonds for the project was rescinded by the council.

The city also plans to refund hotel occupancy tax-backed debt issued for the prior convention center in order to pledge a 4.5% hotel tax for the upcoming bonds. 

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“The refunding bonds are a separate, but related item to the expansion bonds and will only be secured by 2% venue HOT,” city documents said. “The 2% venue HOT will not be pledged to the expansion bonds and will cease to be collected upon final maturity or early payoff of (the refunding bonds).” 

A petition drive that would have delayed the project fell 494 signatures short of a requirement for 20,000 valid signatures of registered voters, Austin City Clerk Erika Brady determined in November.

Petition backers are appealing a district court’s refusal to force validation in state appellate court after the Texas Supreme Court dismissed their petition for a writ of mandamus, according to attorneys.

The petition drive by Austin United PAC and others sought a ballot measure to stop the demolition and reconstruction of the convention center for seven years — or until the project was approved by voters — and prioritize city funding for local live music, arts, cultural, and outdoor tourism. 

The Austin City Council also approved as much as $1 billion of water and wastewater system revenue bonds last month for the Walnut Creek Wastewater Treatment Plant expansion and enhancement project. The bonds will be used to obtain a direct low-interest loan from the U.S. Environmental Protection Agency’s Water Infrastructure Finance and Innovation Act program. 

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Other financing sources for the $1.5 billion project are $59 million from the Texas Water Development Board Clean Water State Revolving Fund program and funding from Austin Water.

A groundbreaking for the project, which is aimed at improving treatment processes and protecting the Colorado River, was held in April.

The plant, which serves more than 50% of Austin and operates at a treatment capacity of 75 million gallons per day, will have its capacity increased to 100 MGD, helping meet future demand and requirements set by the Texas Commission on Environmental Quality for Austin’s projected growth of 1.5 million by 2040, according to a city statement.

A legal logjam over a light rail system eased May 22 when the Texas Supreme Court finally ruled on a procedural issue related to an initial $150 million of bonds for the project. The high court ordered a Travis County Court judge to decide whether the bonds’ issuer, the Austin Transit Partnership, a nonprofit corporation created by the city and Capital Metro Transportation Authority, has standing to seek court validation for the debt.

City taxpayers who filed a lawsuit in 2023, along with the Texas Attorney General’s Office have been challenging the legality of the bonds, which would be paid off with a portion of Austin’s operation and maintenance property taxes voters approved in November 2020 for what was then billed as a 27-mile, 31-station light-rail project estimated to cost $7.1 billion.

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Escalating costs led ATP to downsize Project Connect to an initial less than 10-mile, 15-station system with a similar price tag. The completion of a federal environmental review in January allowed the project to continue a process to seek billions of dollars in federal grants and loans.

ATP said Project Connect is moving forward with construction scheduled to begin next year.  

“We are confident in our case and look forward to our day in court,” ATP said in a statement. “The pending litigation has not slowed our progress advancing Austin light rail, which has hit major milestones in the federal funding process, design, and pre-construction work this year.” 

Bill Aleshire, an attorney who filed the taxpayers’ lawsuit, cautioned that several issues remain before the court, including the legality of the downsized project and the ability to pay off bonds with property tax revenue that is supposed to be used for operations. 

“Their federal funding is uncertain, their ability to issue bonds is uncertain, and they just stubbornly will not listen to us and say it’s time to pause Project Connect and rethink it, that maybe rail isn’t the best way to go at this time and maybe we can’t afford it at this time,” he said.

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