In 1933, the American Legion Texas Centennial Committee and The University of Texas at Austin worked to secure federal aid and also aid from the State of Texas. With overwhelming support of the project, the United States Congress appropriated $300,000 for the construction of the museum in 1936. In addition, the 44th Legislature of the State of Texas appropriated $225,000 for furnishing and equipping the museum and for gathering and collecting materials.
An additional $90,000 was raised from the sale of Texas Centennial Coins and $12,000 was raised from a University of Texas student drive. The Board of Regents of The University of Texas at Austin chose a site for the museum on campus. With more than $600,000 (today's equivalent of $7.4 million) set aside for the Texas Memorial Museum construction began in late 1936