Where Texas Gets Its Money

Where Texas Gets Its Money and Why It Matters

4/26/25 – Where does Texas get its money and why does it matter?

According to data from the U.S. Census Bureau analyzed by the Pew Foundation, the State of Texas received almost as much revenue from the Federal Government as it did from taxes in 2022.

That means that cutbacks in federal spending could affect disaster preparedness, flood mitigation, and recovery efforts in the Lone Star State at a time when more and more hurricanes are rapidly intensifying.

Texas Gets 38% of Its Money From Federal Government

In 2022, the last full year for which the Census Bureau has published data, Texas received 38% of its revenue from the federal government.

Data Source: U.S. Census Bureau’s 2022 Annual Survey of State Government Finances

Texas receives more than the national average in terms of the percentage of its funds received from the federal government.

From Pew based on data above.

Over time, the percentage has trended up.

Data downloaded from Pew, Where States Get their Money

The percentage peaked in Texas during the Pandemic, but otherwise has hovered in the 30-40% range for the last quarter century.

How States Use Federal Money

According to Pew, the funding states receive from the U.S. government helps pay for public services, such as health care; education and training; public safety and justice; housing and community development; child care; transportation; and infrastructure.

In Texas, billions also help mitigate flooding in the form of buyouts; grants for studies; and design and construction of flood-reduction projects.

Budget Cuts Could Impact Disaster Spending

Recent budget cuts driven by the Department of Government Efficiency (DOGE) under the Trump administration have significantly impacted both the Federal Emergency Management Agency (FEMA) and the Department of Housing and Urban Development (HUD), affecting disaster preparedness.

The cuts come in the form of program terminations, staff reductions, and shifts in responsibilities. The administration has signaled intentions to drastically reduce or even eliminate FEMA’s role in disaster response, shifting responsibilities to states. 

The reductions not only diminish the federal government’s capacity to respond to emergencies, but also place additional burdens on state and local governments to fill the gaps left by these federal withdrawals.​

Axios published a story on 4/25/25 about the effects of staff and budget cuts on FEMA headlined “FEMA staff fear they aren’t ready for 2025 hurricane season.”

More Hurricanes Rapidly Intensifying

Sea surface temperatures in the Gulf are already raising concerns.

Yesterday’s Sea Surface Temperature Anomalies from NOAA

Recent studies indicate a notable increase in the frequency and magnitude of rapid intensification events:​

  • Increased Frequency Near Coastlines: The frequency of rapidly intensifying storms within 240 miles of coastlines has significantly increased over the past 40 years. ​National Geographic
  • Higher Intensification Rates: Between 1971 and 2020, mean maximum intensification rates for Atlantic tropical cyclones increased by up to 28.7% compared to earlier decades. ​Nature
  • Global Trends: The occurrence of rapid intensification events has tripled in global coastal regions from 1980 to 2020, highlighting a worldwide trend. ​

These changes are largely attributed to warmer ocean temperatures, which provide more energy for storms, and a more humid atmosphere. ​Wikipedia+1The Atlantic+1

Recent Examples of Rapid Intensification

Several recent hurricanes exemplify this alarming trend:​

  • Hurricane Otis (2023): Transformed from a tropical storm to a Category 5 hurricane with 165 mph winds in less than 24 hours before striking Acapulco, Mexico. ​
  • Hurricane Milton (2024): Rapidly intensified from a Category 1 to a Category 5 hurricane within 12 hours over the Gulf of Mexico, fueled by exceptionally warm sea surface temperatures. ​The Atlantic
  • Hurricane Beryl (2024): Became the earliest Category 5 hurricane on record in the Atlantic, intensifying rapidly due to unusually warm ocean waters. ​

Implications for Coastal Communities

The increasing frequency of rapid intensification events poses significant risks, including:

  • Reduced Preparation Time: Communities have less time to prepare and evacuate, increasing the potential for loss of life and property.​
  • Forecasting Challenges: Rapid changes in storm intensity complicate forecasting efforts, making it harder to provide accurate warnings.​
  • Increased Damage Potential: Stronger storms can lead to more severe flooding, higher storm surges, and greater overall destruction.​

Given these trends, it’s crucial for coastal regions, including Texas, to enhance their disaster preparedness plans and capabilities.

Tax-Free Emergency Supplies Through 28th

And that reminds me, emergency supplies such as batteries, flashlights and generators, are tax free this weekend. So stock up now. Here’s a list of tax free items from April 26-28.

Posted by Bob Rehak on 4/26/25

2797 Days since Hurricane Harvey