A publicly funded Texas water park changed its event policy from "Muslim only" to "modest dress only" and "all are welcome" after Governor Greg Abbott threatened to revoke state grants worth $530,000.

The controversy arose over a scheduled event at the taxpayer-funded facility that was initially advertised as exclusive to Muslim patrons. Abbott's administration took issue with the exclusionary nature of the event at a venue receiving public funding.

Following the governor's threat to pull the state grants, park officials modified the event guidelines to maintain modest dress requirements while opening attendance to all members of the public, regardless of religious affiliation.

The incident highlights ongoing tensions over the use of public facilities and funding for events that may exclude certain groups. State officials argued that taxpayer-funded venues should not host exclusive events that bar access based on religious or other demographic criteria.

The water park's policy change appears to have resolved the immediate funding dispute with the state government, allowing the facility to retain its grant funding while accommodating community events under modified guidelines.