Final answer:
Texas used the money from the Compromise of 1850 to pay off its existing debts from when it was an independent republic.
Step-by-step explanation:
The money that Texas received in the Compromise of 1850 was used by Texas leaders to pay off debts and support the state's finances. As part of the Compromise, the federal government agreed to assume Texas' debts from its time as an independent republic. This infusion of money helped Texas improve its financial stability.
The money that Texas received in the Compromise of 1850 was used to pay off debts that the state had accumulated during the period in which Texas was an independent republic. The federal government agreed to pay these debts as part of the Compromise, settling the contentious issue of Texas's boundary with New Mexico and eliminating any claims Texas had on this territory.
In exchange for giving up claims to land in what is now part of New Mexico, Texas received $10 million from the federal government, which helped to put the state's finances in order and support the state's stability during this tumultuous period in US history.