Texas Received $10 Million in U.S. Bonds for Relinquishing New Mexico Claims

Under the Compromise of 1850, the Republic/State of Texas ceded its claim to eastern New Mexico (and other disputed territory north of 36°30′) to the U.S. federal government in exchange for:

• $10 million in U.S. Treasury bonds (5% interest)
• Federal assumption of Texas's pre-annexation debts
• Retention of its current boundaries (including Panhandle)

This resolved the Texas–New Mexico boundary dispute dating to the Republic era. The bonds helped Texas pay off its crushing debt. The ceded land became part of the New Mexico Territory (1850) and later the state of New Mexico (1912).

Texas is the only state to enter the Union with sovereign debt and negotiate territory for financial relief.