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HOUSTON — A Houston city ordinance that limited police officers’ cooperation with federal immigration agents was amended on Wednesday after Texas’ governor threatened to take away millions of dollars in public safety grants.

Houston, Austin and Dallas — three of the state’s biggest cities and Democratic strongholds — are being confronted by GOP Gov. Greg Abbott with threats of losing public safety dollars over policies that dictate how law enforcement interacts with federal immigration authorities. The three cities are being threatened with the loss of about $200 million in public safety funding, including tens of millions expected to cover security at World Cup matches this summer in Dallas and Houston.

Two weeks ago, the Houston City Council passed the ordinance, which eliminated a requirement that Houston police officers wait 30 minutes for agents with U.S. Immigration and Customs Enforcement to pick up someone with a nonjudicial administrative warrant. If ICE agents didn’t show up in time, police officers took a detained person’s information and then released them.

But Abbott warned city officials that the new ordinance and its limitation on cooperating with ICE agents violated the terms of $110 million in state grants Houston had received for police and security during the World Cup games the city is hosting in June.

Texas Atty. Gen. Ken Paxton had also filed a lawsuit against Mayor John Whitmire and members of the City Council over the ordinance, accusing them of violating a 2017 state law that prevents cities from adopting policies that limit the enforcement of immigration laws and that also banned “sanctuary city” policies in the state. There is no strict definition for sanctuary policies or sanctuary cities, but the terms generally describe limited cooperation with ICE.

After more than two hours of discussion during its weekly meeting, the Houston City Council voted 13 to 4 to make changes to the ordinance. Whitmire said he had consulted with Abbott’s office about making changes that would prevent Houston from losing its funding.

The amended ordinance deletes language that highlighted that administrative warrants — versus warrants signed by a judge — that ICE agents use to take individuals into custody are not enough for officers to arrest or detain an individual.

Houston Mayor John Whitmire speaks during a City Council meeting on Wednesday.

(Raquel Natalicchio/AP)

“We have no alternative for Houston to survive, prepare for [the World Cup], patrol these neighborhoods,” Whitmire said. “We’ve got to have today the restoration of the $114 million.”

Andrew Mahaleris, a spokesperson for Abbott, said the governor expects any policy Houston police adopt has to comply with the city’s certification that it will fully cooperate with the Department of Homeland Security.

“This vote is a step in the right direction after Houston leaders put public safety at risk with reckless policies that undermined law enforcement,” Mahaleris said in a statement.

Councilmember Abbie Kamin, one of three members who had pushed for the ordinance, voted against amending it, saying that doing so was giving in to bullying tactics from state leaders.

“If we roll over now to a bully, what will he come for next?” Kamin said.

Councilmembers Edward Pollard and Alejandra Salinas, who also pushed for the ordinance, said they remained hopeful the changes approved Wednesday would not violate individuals’ constitutional rights and wouldn’t result in people being held on nonjudicial warrants.

Nikki Luellen, an advocate for criminal justice reform for the ACLU of Texas, called the amended ordinance “a green light for deeper collaboration between ICE and the Houston Police Department.”

Martha Castex-Tatum was one of several council members who had supported the ordinance but voted in favor of amending it in order to protect the city’s finances.

“For some people, this may feel like surrender. It’s not. It’s real stewardship,” Castex-Tatum said.

Dallas officials have said they are committed to ensuring public safety.

Austin Mayor Kirk Watson, a moderate Democrat, said the local policy complies with state law. He said Abbott’s threat to cut nearly $3 million in Austin would cut trauma aid for police officers and sexual assault victims.

“We don’t have the time and will not play into this political theater,” Watson said.

Austin officials have since indicated they could try to negotiate with Abbott.

The debate in Houston and other Texas cities comes during fraught times. Whitmire and other local leaders in many of Texas’ left-leaning urban areas have tried not to draw the federal government’s attention amid the aggressive immigration crackdown by President Trump’s administration.

Lozano writes for the Associated Press. AP writer Jim Vertuno in Austin contributed to this report.

WASHINGTON — U.S. companies will be allowed to do business with Venezuela’s state-owned oil and gas company after the Treasury Department eased sanctions, with some limitations, on Wednesday as the Trump administration looks for ways to boost world oil supplies during the Iran war.

The Treasury issued a broad authorization allowing Petróleos de Venezuela S.A, or PDVSA, to directly sell Venezuelan oil to U.S. companies and on global markets, a massive shift after Washington for years had largely blocked dealings with Venezuela’s government and its oil sector.

Separately, the White House said President Trump would waive, for 60 days, Jones Act requirements for goods shipped between U.S. ports to be moved on U.S.-flagged vessels. The 1920s law, designed to protect the American shipbuilding sector, is often blamed for making gas more expensive.

The moves highlight the increased pressure that the Republican administration is under to ease soaring oil prices as the United States, along with Israel, wages a war with Iran without a foreseeable end date. Global oil prices have since spiked as Iran halted traffic through the narrow Strait of Hormuz, where one-fifth of the world’s oil typically passes through from the Persian Gulf to customers worldwide.

The Treasury’s license is designed to incentivize new investment in Venezuela’s energy sector and is intended to benefit both the U.S and Venezuela, while increasing the global oil supply, a Treasury official told the Associated Press. The official was not authorized to discuss the matter publicly and spoke on condition of anonymity.

Since the ouster and arrest of Nicolás Maduro as Venezuela’s president during a U.S. military operation in January, Trump has said the U.S. would effectively “run” Venezuela and sell its oil.

The U.S. license provides targeted relief from sanctions, but does not lift the penalties altogether. The license allows companies that existed before Jan. 29, 2025, to buy Venezuelan oil and engage in transactions that would normally be banned under American sanctions, reopening trade for a major oil producer to global markets.

There are some limits.

Payments cannot go directly to sanctioned Venezuelan entities such as PDVSA, but must be sent instead to a special U.S.-controlled account. In other words, the U.S. will allow the oil trade but will control the cash flow.

Additionally, deals involving Russia, Iran, North Korea, Cuba and some Chinese entities will not be allowed. Transactions involving Venezuelan debt or bonds will not be allowed.

The license is expected to give a massive boost to Venezuela’s oil-dependent economy and help encourage companies that have been apprehensive to invest. The decision is part of the Trump administration’s phased-in plan to turn around Venezuela. But critics of the acting Venezuelan government argue that the move rewards Venezuela’s leadership — all loyal to Maduro and the ruling party — while repression, corruption and human rights abuses continue.

Many public sector workers survive on roughly $160 per month, while the average private sector employee earned about $237 last year, when the annual inflation rate soared to 475%, according to Venezuela’s central bank, and sent the cost of food beyond what many can afford.

Venezuela sits atop the world’s largest oil reserves and used them to power what was once Latin America’s strongest economy. But corruption, mismanagement and U.S. economic sanctions saw production steadily decline from the 3.5 million barrels per day pumped in 1999, when Maduro’s mentor, Hugo Chávez, took power, to less than 400,000 barrels per day in 2020.

A year earlier, the Treasury Department under the first Trump administration locked Venezuela out of world oil markets when it sanctioned PDVSA as part of a policy punishing Maduro’s government for corrupt, anti-democratic and criminal activities. That forced the government to sell its remaining oil output at a discount — about 40% below market prices — to buyers such as China and in other Asian markets. Venezuela even started accepting payments in Russian rubles, bartered goods or cryptocurrency.

The new license does not allow payments in gold or cryptocurrency, including the petro, which was a crypto token issued by the Venezuelan government in 2018.

Meantime, White House press secretary Karoline Leavitt said the Jones Act waiver would help “mitigate the short-term disruptions to the oil market” during the Iran war and would “allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports.”

Hussein and Cano write for the Associated Press. Cano reported from Caracas, Venezuela. AP writer Seung Min Kim contributed to this report.