Governor Blames Dallas Officials for AT&T's Corporate Exodus to Plano

Political Blame Game Erupts Over Corporate Move

Texas Governor Greg Abbott is placing blame on Dallas city leadership following AT&T's decision to move its global headquarters from downtown Dallas to Plano. Speaking at a Fort Worth police event, Abbott blamed what he called the city's failure to fully fund and staff its police department and "contain a homeless problem" downtown. The governor declared: "Because Dallas did not do that, AT&T is now moving out of downtown Dallas."

Abbott's comments came one day after AT&T announced plans to relocate its headquarters to 54 acres of land in Plano, a move the company said would allow it to "cost-effectively consolidate" three North Texas locations. Abbott's remarks sought to turn AT&T's move into a referendum on the city's public safety approach, as he warned the state would review whether the city's police funding decisions comply with a 2021 law restricting cuts to police budgets.

Notably, AT&T's CEO did not cite crime as a reason for the company's move to Plano, rather stating that moving to a 54-acre site along Legacy Drive allows the company to consolidate three of its North Texas locations. In a joint statement with City Manager Kimberly Bizor Tolbert, Mayor Eric Johnson said the city's economic strengths had drawn AT&T to Dallas in 2008, and its decision to move was the result of company leadership favoring a "large horizontal, suburban-style campus."

Dallas Officials Push Back on Governor's Claims

Dallas police Chief Daniel Comeaux said Thursday that Governor Abbott was off base in blaming AT&T's planned move from downtown on city leaders' public safety decisions, saying instead that conditions were improving from stepped-up patrols and renewed focus on the area. "It's not a true depiction of what's going on in Dallas," Comeaux said. "Crime is down, recruiting is at an all-time high, and our retention is better this year for officers. The morale is up."

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, with their goal to end the fiscal year with 3,424 officers - the highest number since 2016. The downtown area had more than 120 assigned officers as of November — up from about 90 at the start of the year, according to records reviewed by The Dallas Morning News.

Mayor Eric Johnson highlighted the city's progress in a statement: "In recent years, we have worked together to cut violent crime, homelessness, property tax rates, and bureaucratic red tape. We have added $27 billion in new development since 2019 and have more on the way, such as the exciting new Goldman Sachs' campus and our fast-growing 'Y'all Street' financial sector."

Economic Impact and Future Concerns

Before the launch of downtown safety initiatives, a study commissioned by Downtown Dallas Inc. estimated AT&T's departure could contribute to a roughly 30% drop in downtown property values. One of the world's largest telecommunications companies, AT&T has been headquartered in Dallas' Whitacre Tower since 2008. The company had nearly 6,000 workers assigned to its downtown offices in 2022.

Economic analyst Ray Perryman told KERA that the loss of a long-time anchor and high-profile company is a blow to the downtown area, but AT&T's move out of downtown is not unique to Dallas, as the relocation is part of a long-term trend of activity shifting to suburban hubs, which accelerated during the pandemic. The company decided to consolidate its three largest locations into a 54-acre suburban-style campus at 5400 Legacy Drive in Plano, with plans for potential occupancy by late 2028.

State Investigation Looms

During the news conference, Abbott signaled his office could look into Dallas' funding decisions with the police department, specifically mentioning legislation he signed into law in 2021 that restricts cities' abilities to reduce police budgets: "We're going to be looking into what the city of Dallas has or has not done with regard to funding the police [and] see if they're in violation of that state law that I signed."

The controversy highlights the ongoing tension between state and local officials over urban policy priorities. While Abbott frames AT&T's departure as a consequence of failed leadership, Dallas officials point to measurable improvements in public safety and significant budget investments. As the telecommunications giant prepares for its suburban relocation, the debate underscores broader questions about downtown revitalization strategies and the complex factors driving corporate location decisions in modern Texas.