These devices utilize artificial intelligence to track vehicle characteristics such as color, make, and unique markings like bumper stickers, rather than just license plate numbers.
The funding freeze follows growing bipartisan concern over privacy and reports of officer misconduct involving the technology.
According to Governor Abbott, the "crackdown" responds to instances of misuse, including a case where a Lufkin officer allegedly used the system to illegally surveil individuals.
Lawmakers noted that the $30 million in grants originated from a 2023 law intended to combat catalytic converter theft through a $1 insurance fee, but the subsequent use of those funds for a massive surveillance network was never discussed during the legislative process.
The decision directly impacts the Department of Public Safety and local police departments that rely on state grants for these automated license plate readers.
While Flock Safety maintains that its technology is a vital tool for solving crimes and finding missing persons, critics argue the system enables warrantless surveillance by allowing agencies to share data across a nationwide network.
Moving forward, state agencies must clarify that their funds cannot be used for these cameras, potentially stalling the expansion of a network that currently includes a $15.9 million contract for the state's own public safety department.