Records concerning SpaceX tax breaks remain out of public view despite a state ruling requiring their release, a Texas residents' group alleges. The group is suing Grimes County to obtain them.
The company's effort to keep some of those documents confidential has also drawn opposition from the residents.
Here's what to know
The group said acceptance by the district clerk was still pending after Grimes County Citizens for Responsible Development submitted its petition to Travis County's 126th District Court on Oct. 27, 2026, according to KBTX.
Commissioners approved incentives for the Terafab development on June 3. Documents concerning that approval are at issue.
The county has failed to release information covered by the state's disclosure ruling, the residents' group alleges. The July 28 determination from Texas Attorney General Ken Paxton's office allowed certain attorney-client communications to remain confidential but required disclosure of everything else.
KBTX reported that the company regards the documents as trade secrets and says disclosure would cause "substantial competitive harm." Space Exploration Technologies Corp., commonly known as SpaceX, brought its September lawsuit against Paxton and the county to block release of some records.
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More background
According to the residents' petition, commissioners also established a reinvestment zone and approved an economic development agreement and a road-use agreement, all effective June 3. The requested documents could help residents understand how they negotiated those commitments.
Marie Egyed, the group's director of operations, requested records on the evening of June 3, 2026, concerning the abatement application, reinvestment zone, notices to affected taxing authorities, and communications behind the deal.
A second request, dated June 23, sought documentation of the economic development agreement's circulation and revisions after the vote, according to the petition published by KBTX.
Residents' frustration, Egyed said, stemmed from feeling excluded from project decisions.
"Since the very first meeting that I went to, April 1st, commissioner's court, it has been nothing but a brick wall," she said. "We don't understand why we've been left out of a monumental, historical, generational change."
What's being done?
One of its goals is a court order compelling Grimes County to turn over records responsive to the group's requests. The group is also intervening in SpaceX's lawsuit to contest the company's attempt to keep records confidential.
According to the petition, the county let the attorney general's decision stand without filing suit.
The signing of an agreement ends Texas law's protection for incentive negotiations, according to Bill Aleshire, the group's attorney with Austin-based AleshireLAW, in an explanation to KBTX.
"Once they've signed it, all of that information becomes public information, unless it's confidential by law," he said.
The petition also questions which corporate entity can claim confidentiality. The group said state records identify "SpaceX" as another company's assumed name and asks the court to require the plaintiff to identify itself by its legal name or an assumed name belonging to it.
Grimes County Judge Joe Fauth offered no comment.
"It is precisely when a project is as controversial and of such broad public interest as SpaceX/TeraFab that we need more transparency, not less. A private business that wishes to keep its dealings confidential should not expect the same secrecy when seeking government incentives and tax breaks. Government's highest duty is to serve and protect the people it represents. SpaceX, regardless of its size or wealth, has no greater right to withhold public information from taxpayers than any other business. We intend to prove that in court," Aleshire said in the group's press release.
Where can I learn more?
Grimes County residents want to know how officials negotiated SpaceX's tax breaks. These stories cover SpaceX's valuation, Texas tax exemptions, and opposition to corporate incentives.
• SpaceX's rising valuation helped push Elon Musk's wealth past $1 trillion again.
• In El Paso County, school tax exemptions leave two in five homeowners owing nothing for two years.
• In Texas, a Dallas Stars arena proposal is sparking a tax revolt before November's vote.
• Michigan residents packed a council meeting, helping delay Fibrosan's tax break worth $12 million.
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