The Compromise of 1850 transfers a third of Texas's claimed territory to federal control in return for the U.S. federal government assuming $10 million of Texas's pre-annexation debt.

The Compromise of 1850 was a package of five separate bills passed by the United States Congress in September 1850 that temporarily defused tensions between slave and free states during the years leading up to the American Civil War. Designed by Whig senator Henry Clay and Democratic senator Stephen A. Douglas, with the support of President Millard Fillmore, the compromise centered on how to handle slavery in recently acquired territories from the Mexican–American War (1846–48).

Texas is the most populous state in the South Central region of the United States. It borders Louisiana to the east, Arkansas to the northeast, Oklahoma to the north, New Mexico to the west, and an international border with the Mexican states of Chihuahua, Coahuila, Nuevo León, and Tamaulipas to the south and southwest. Texas has a coastline on the Gulf of Mexico to the southeast. Covering 268,596 square miles (695,660 km²) and with over 31 million residents as of 2024, it is the second-largest state by area and population. Texas is nicknamed the Lone Star State for its former status as an independent country, the Republic of Texas.