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.
TWIA’s Expanding Reach Raises Fresh Concerns
TWIA has become the leading wind and hail insurer in the catastrophe area. Its position has direct and indirect consequences for Texans statewide. Key points: Since 2020, TWIA has steadily increased its market share in the catastrophe area, raising concerns about scope and cost. TWIA’s quasi-governmental model imposes potential costs on statewide policyholders and private...