Newton County Faces $1.2M in Grant Repayment Demands

County must pay back funds for missed deadlines and unpurchased homes under flood buyout program

Published on Feb. 22, 2026

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Newton County, Texas officials say they must repay nearly $1.2 million tied to a flood buyout grant after a state appeal was denied and a separate reimbursement request was issued by the Sabine River Authority. The repayment stems from homes bought out between 2018-2020 that were not demolished within required timeframes, as well as funds accepted for homes that were never actually purchased through the program.

Why it matters

The grant repayment demands put significant financial strain on Newton County's budget, requiring the county to draw from reserves to make an initial $225,000 payment. The situation highlights the challenges local governments can face in managing complex disaster relief programs and meeting strict deadlines, as well as potential issues with oversight and accounting for grant funds.

The details

According to Commissioner Powell, the county's second appeal to avoid repaying $806,991 related to seven properties purchased through grant CR-4266-0011 was denied by the Texas Division of Emergency Management (TDEM). TDEM has required an immediate $225,000 payment, followed by a payment plan for the remaining $581,991. Additionally, the Sabine River Authority has formally requested another $397,000 reimbursement, claiming the county accepted funds for homes scheduled for buyout that were never actually purchased.

  • The homes were bought out between roughly 2018 and 2020 under a flood buyout program.
  • The county obtained extensions from 2020 to 2022, but the extension filed in early 2023 was denied.
  • The initial $225,000 payment to TDEM is planned for the next Commissioners Court meeting.

The players

Newton County

A county in Texas that must repay nearly $1.2 million in grant funds related to a flood buyout program.

Texas Division of Emergency Management (TDEM)

The state agency that denied Newton County's appeal and is requiring the county to repay $806,991 in grant funds.

Sabine River Authority (SRA)

The organization that has formally requested Newton County reimburse $397,000 in grant funds for homes that were scheduled for buyout but never purchased.

Commissioner Powell

A Newton County commissioner who provided details on the grant repayment demands.

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What they’re saying

“The SRA is of the opinion that the County received SRA funds for homes that were scheduled to be 'bought out', and then the homes were not purchased through the grant program, yet the county kept the money.”

— Commissioner Powell (12newsnow.com)

“A line item will be placed on next week's Commissioners Court meeting to cash out a portion of the County's 'money market account' to make the $225,000.00 initial payment.”

— Commissioner Powell (12newsnow.com)

What’s next

County officials said they need more information before responding to the SRA's $397,000 reimbursement demand, and the issue will be discussed further after attorneys review the contractual agreement between the county and the SRA.

The takeaway

This case highlights the financial and administrative challenges local governments can face in managing complex disaster relief programs, particularly when it comes to meeting strict deadlines and accounting for grant funds. The situation in Newton County underscores the importance of strong oversight, clear communication, and thorough documentation to avoid such repayment demands down the line.