Three Austin locals have launched a lawsuit in an attempt to prevent the payment of $25m aimed at subsidising the proposed Grand Prix.

The three, who include a teacher who was recently made redundant as a result of authority cut backs, and a local accountant, have filed the lawsuit against Susan Combs the state comptroller. They are represented by Bill Aleshire, a former county tax collector and judge who has a history of opposing the use of taxpayer's money to support the race.

The suit relates to the $25m guaranteed to Bernie Ecclestone's Formula One World Championship Limited in respect of the hosting fee for the race, public money which would have come out of the state of Texas' Major Event Trust Fund.

The lawsuit, which was filed yesterday (Wednesday) in the state District Court in Travis County, claims that Combs promised the money illegally, and calls for any payment from the state to them to be halted.

"All applicable state rules and regulations were followed," said Allen Spelce, a spokesman for Combs, according to the Statesman. "By bringing F1 to Austin we create jobs and spur economic development. The Comptroller's office has followed the law as it is laid out in statute and administrative rules."

At this stage it is unclear how the lawsuit will affect progress as far as the race is concerned, however, event organizers have always made it clear that they would need public money to get the event off the ground.

The Major Event Trust Fund has been used in the past to bring various high profile events to Texas including the Super Bowl and NBA and Major League All-Star games. It provides initial funding for private sponsors of approved events based on the sales tax revenue said events raise. Supporters insist that the way the programme is run, and events chosen, means that ultimately taxpayers are not left out of pocket.

However, in this instance, it is claimed that Combs guaranteed the money before she was officially given permission to do so.