Federal funds that go directly to Texas’ political subdivisions affect the Texas economy as a whole. But regulation of Texas’ economy is, under the U.S. Constitution, a power that belongs to the state government, not the federal government. The Texas state government needs to take a full reckoning of federal grants sent directly to local governments, because these funds are never “free”—they come with federal requirements that build spending requirements into the system.
Local Government
Growing Pains: The Cost and Contribution of Impact Fees in Texas
Texas’s rapidly growing population requires new infrastructure and improvements, which oftentimes come at great expense. To fund these projects, local officials often impose impact fees on new development—but their use comes at a cost. Key points: Texas is the fastest-growing state in the nation. As such, it has robust infrastructure requirements. To help finance capital...
August 12, 2026