Proposals of 1850 for Texas northwestern boundary. The Compromise of 1850 set Texas's boundaries at their present form. U.S. Senator James Pearce of Maryland drafted the final proposal where Texas ceded its claims to land which later became half of present day New Mexico, a third of Colorado, and small portions of Kansas, Oklahoma, and Wyoming to the federal government, in return for the assumption of $10 million of the old republic's debt. Post-war Texas grew rapidly as migrants poured into the cotton lands of the state.