The Texas Public Policy Foundation's (TPPF) Government Reform & Oversight Coalition released new research calling on the Texas Legislature to establish an Office of State Sovereignty to better monitor and coordinate federal funding flowing to Texas governments.
The research argues that excessive reliance on federal aid can influence state and local policy decisions, increase government spending, and create long-term fiscal obligations after federal funding expires.
"Today's policy landscape lacks coordination, oversight, and accountability. This is an invitation to duplication, waste, and malgovernance. It's time to do better," TPPF's James Quintero said.
The coalition points to the post-COVID funding environment as an example, arguing that some Texas governments continued funding pandemic-era positions and programs with local revenues after federal aid expired. Quintero said the shift can leave property taxpayers responsible for programs that were not originally intended to be permanent.
TPPF's Ben Crockett similarly argued that federal grants can influence local policy priorities.
"During the Biden administration, millions of dollars in federal grants enticed Texas local governments into pursuing woke programs in the name of DEI and environmental justice," said Crockett.
The research identifies several areas the proposed office would address, including Texas' lack of a centralized system for overseeing federal grants potentially flowing to more than 5,000 local governments.
The coalition also argues that federal grants can carry policy conditions that increase federal influence over state and local governments and potentially conflict with Texas' approach to limited government.
According to the research, long-term reliance on federal funding can increase government spending, reduce local discretion and create fiscal dependence.
The proposal comes as Texas governments continue managing federal funding streams that support programs and services across the state. The coalition says greater coordination and oversight would help Texas evaluate federal funding before accepting obligations that could continue after federal assistance ends.
