Dallas has ordered an immediate freeze on most city hiring, discretionary spending and nonessential travel as officials work to close a budget shortfall running into the tens of millions of dollars.

City Manager Kimberly Bizor Tolbert announced the cost-control measures Friday, April 24, 2026, in a memo to department directors. The decision follows growing financial pressure from higher police and fire overtime costs, weaker sales tax collections and increased employee health benefit expenses.

Hiring Freeze Targets Nonuniform General Fund Roles

The hiring pause applies to nonuniform general fund positions, with most vacancies expected to remain open through Sept. 30, the end of the fiscal year. Police, fire, nongeneral fund positions and seasonal roles are not included in the freeze.

Departments may request exceptions, but only for roles considered mission critical. Under the city’s definition, those positions must be essential to preventing major operational disruption, legal or compliance problems, public health or safety risks, or the failure of required city services.

Tolbert said the city must improve efficiency while directing limited resources toward its most urgent responsibilities.

Budget Pressure Comes From Multiple Areas

City officials project general fund expenses will exceed the approved budget by $16.4 million, mainly because of police and fire pay and overtime. General fund revenue is also expected to come in $3.8 million below forecast, with declining sales tax revenue cited as a key factor. Sales tax revenue accounts for about 24% of Dallas’ general fund income. The city is also facing a separate $13.8 million projected overrun in its employee health benefit fund. Dallas self-funds employee health insurance, and officials said medical and pharmacy claims have increased beyond expectations.

Last fall, the City Council approved a $5.2 billion city budget, including a $1.9 billion general fund that supports many core municipal services.

Spending and Travel Restrictions Take Effect Immediately

Tolbert’s directive goes beyond hiring. Nonessential purchases are being halted, and departments have been instructed to review existing commitments and cancel or delay them where possible.

Nonuniform overtime has also been eliminated, except for limited pre-approved cases in Tier 1 departments. Those include police, fire, courts, code compliance, animal services, public works, emergency management and facilities. All nonessential travel is now suspended. Travel may continue only when tied to emergency response, legal requirements, certification needs or critical operations, and only with proper approval.

Departments must also limit future agenda items to essential or no-cost matters. Updated financial projections are due by May 15, and further reductions could follow.

Council Members Signal Tough Budget Choices Ahead

Several City Council members said the city’s financial situation shows the need for tighter spending controls.

Council member Chad West, who chairs the council’s Finance Committee, said Dallas will need to reduce spending during the next budget cycle, similar to the way many households are adjusting to economic pressure. Council member Paula Blackmon said City Hall should also examine its own structure and spending. She described the organization as top-heavy and said the mayor’s and City Council offices should be part of any broader cost-cutting effort.

The current fiscal year ends in September, giving Dallas officials several months to bring spending closer in line with available revenue.