Two new cultural districts in Austin have been officially approved by the Texas Commission on the Arts (TCA). The new 5th Street Mexican American Heritage Corridor & Cultural District and Govalle Cultural District will now receive special year-round grant support to keep their niche cultures going.

Texans were first authorized to create cultural districts in 2005, during the 79th legislature, but Austin is still in the early stages of learning what this could look like in a practical sense. The Texas capital now has four cultural districts that are recognized on a state level — the two above, as well as Six Square (which manages the African American Cultural Heritage District) and the Red River Cultural District — plus a pending proposal on the city level for the South Shore Cultural District.

According to a press release from TCA, "Cultural districts are special zones that harness the power of cultural resources to stimulate economic development and community vitality. These districts can be focal points for generating business, attracting tourists, stimulating cultural development and fostering civic pride."

Most Austinites probably don't realize these cultural districts exist, even if they've visited them. Their main importance is organizational, for securing funding and managing the area. Locals tend to come into contact with them through events and initiatives like the twin free music festivals Free Week and Hot Summer Nights on Red River Street, or historical events in Six Square. However, it's easy to visit without knowing much about who is organizing the programming.

The districts are also small — not the size of an entire neighborhood — and follow natural, pre-existing boundaries. The Mexican American district is anchored by Republic Square and Plaza Saltillo, and is home to the highly regarded Mexic-Arte Museum. The new Govalle district, which was only designated on the city level this June, is largely anchored by Canopy Austin and Springdale Station, two small complexes shared mainly by artists alongside some food and beverage businesses.

In addition to Austin's new districts, two more were designated at the same time farther afield: the Kerrville Cultural District and the Odessa Arts District. The new designations make 57 cultural districts in all across Texas.

On September 4, TCA Commissioners approved the first round of funding for fiscal year 2026, which encompasses 1,099 grants totaling more than $16.5 million. Determining the cultural districts is important because it makes businesses located within them eligible for special grants. This year, 118 applicants from 37 cultural districts are splitting more than $7.6 million in funding.

Aside from the Cultural District Project program, the grants also support the Arts Create program (for supporting established arts organizations), the Arts Respond Project and its quarterly Arts Respond Performance Support program, and the quarterly Commission Initiatives and Designated Funding program. Initiatives are spread across 133 cities.