Editor's note: This story has been corrected to show Ft. Worth is expecting a $49 million gap for the 2026-27 fiscal year (not this fiscal year).

Dallas and Fort Worth are anticipating multimillion-dollar budget shortfalls this year — but the World Cup may help bridge the gap.

Why it matters: Residents could see reduced services as the cities try to balance their budgets.

• Both cities say lower-than-expected sales tax and property tax revenue is partly to blame for their large budget gaps.

State of Fort Worth: The city is expecting a $49 million gap for the 2026-27 fiscal year's general fund and has asked department heads to cut their budgets by 1% and think of ways to save another 3%.

• Even with those reductions, the city may be left with a $27 million gap that needs to be filled before the 2027 budget is finalized this fall.
• "City staff will work throughout the summer to close the gap and balance the budget by early August," Fort Worth spokesperson Kevin Neal tells Axios.

State of Dallas: In early May, Dallas officials were expecting a roughly $30 million general fund shortfall this fiscal year. They are now projecting a roughly $17.5 million shortfall, per a May 22 memo.

• The city has frozen hiring in certain departments and is restricting overtime and non-essential travel.

Yes, but: Both cities could get a boost from World Cup visitors this summer through sales tax and hotel occupancy tax revenue.

• But Brady Kirk, an assistant finance director for Fort Worth, cautioned against banking on the unknown for the next budget.
• "As much as we're all hoping that we'll see some increased activity, we really wouldn't want to bake that into our growth assumption for next year," Kirk said at a May 19 budget meeting.

Zoom in: The Dallas Park and Recreation Board says the city manager asked it to cut $13 million from its 2026–27 budget, per a presentation last week.

• The department has cut 20 vacant positions and is considering a slew of changes, including cutting hours at pools and recreation centers and closing four facilities — though officials say that would only cut $8.9 million from the budget.

What's next: Fort Worth's and Dallas' city councils are scheduled to hear updates this month about their budgets. The next fiscal year begins in October.

Texas leads the nation with its 57 Fortune 500 headquarters and $2.8 trillion in combined revenue, per a newly released Fortune 500 list.

Why it matters: The count is expected to rise in the coming years as more companies establish their main offices in Texas.

Context: The Fortune 500 list ranks companies by revenue. Amazon has ended Walmart's 13-year streak to become the country's largest company based on revenue.

Zoom in: Irving-based McKesson is the eighth-largest Fortune 500 company in the country, an improvement from the ninth spot last year.

• AT&T is No. 35 this year, moving up two spots from the 2025 ranking. The telecom giant is among Dallas' 11 Fortune 500 companies but will eventually move to Plano, which has just one company headquarters in the top 500.

The intrigue: Samsung confirmed this week that it plans to move its U.S. headquarters from New Jersey to its Plano campus by the end of the year.

• Samsung says the move will build on a 30-year presence in Texas, positioning the company for "long-term growth and future success."

What they're saying: "Texas is the undisputed headquarters of headquarters," Gov. Greg Abbott said in a statement.

• He said companies are drawn to Texas "because of our welcoming business climate, predictable regulatory environment, and skilled and growing workforce."

🚨 A men's prison in Wise County was evacuated because of high carbon monoxide levels. (NBC5)

🀄️ A woman and her mother are opening a mahjong lounge in Fort Worth that will offer classes, accessories and a competitive league. (Fort Worth Report)

🗳️ Texas Secretary of State Jane Nelson will step down later this month after three and a half years as the state's chief election officer. Abbott will need to nominate her replacement. (Texas Tribune)

📚 Accept a book deal. Buy discounted reads at the Lewisville Public Library's summer book sale, which supports programming and maintenance costs.

• Presale tomorrow and general sales on Saturday at the Main Street Lewisville location.

⚽️ Meet a mascot. Take the kids to Home Depot to meet World Cup mascots and participate in a soccer-themed workshop.

• 9am-noon Saturday at 11682 Forest Central Drive in Dallas. Free but register beforehand.

🌈 Connect and converse. Dallas Pride's Festival of Rainbows includes a parade, speed dating, pet adoption and activations at several downtown Dallas parks.

• 11am-10pm Saturday on Main Street. $15 adult admission, though the parade is free to spectators.

🏆 Shoot your shot. The American Cornhole League is hosting a Fort Worth Signature Open that's open to pros and the public.

• Friday-Sunday at Will Rogers Memorial Center.