Texas Gov. Greg Abbott is threatening to pull hundreds of thousands of dollars in state funding from Grand Prairie if the city allows its water park to host a private party for Muslims. 

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Epic Waters, the city-owned park, is set to host a June 1 celebration for Eid al-Adha, an Islamic holy day. Fliers for the event circulated on social media in recent days, prompting a backlash among conservatives and social media influencers. 

In a statement posted Wednesday on X, Abbott gave the city a deadline of May 11 to cancel the event or lose $530,000 in state funds.

“That’s religious discrimination,” Abbott wrote on X. “It’s unconstitutional.”

Abbott pointed to a law he signed last year that targeted the business structure behind The Meadow, a planned Muslim-centric neighborhood about 40 miles northeast of Dallas, previously called Epic City. It is not clear if and how that law applies to private events.

Fliers initially described the event as for “Muslims only,” with a modest dress code and private prayer area. Aminah Knight, a Dallas-area mother of six who is hosting the event, said she did not intend to exclude anyone and later revised the flier to say “All are welcome.”

This is the third year Knight has hosted the party, which is expected to draw about 600 people.

“As Muslims, we have a modest dress code. Going to a water park can be a challenge,” Knight said. “This is a way to have fun and make sure our children and community feel seen.”

Grand Prairie city spokesman Eric Alvarez did not immediately respond to an email from The Dallas Morning News seeking a response. The city said in a statement Tuesday that it was aware of concerns surrounding the event and has been in contact with the park to ensure all policies and procedures were followed.

Epic Waters is owned by the city and managed by a third party. The park opened in 2017 after voters approved a 0.25% sales tax. The park is available for rent by outside individuals and groups, beginning at $5,000 an hour.

Abbott has increasingly used funding as leverage, adopting a strategy favored by President Donald Trump, who has repeatedly threatened to pull funds from states and cities whose policies did not align with his administration.

Last month, Abbott threatened to pull $32 million in state funds if Dallas did not repeal police department rules around collaboration with U.S. Immigration and Customs Enforcement. He issued similar warnings to Houston and Austin.

In response, Dallas revised its rules to allow officers to ask people lawfully detained or arrested about their immigration status, work with federal immigration authorities and share immigration-status information with them.

This is a developing story.