Following the Battle of San Jacinto, one of the first problems that the ad interim government faced was what to do with the recently captured Santa Anna. At Velasco, it was decided that Santa Anna would be released, providing he signed the Treaties of Velasco. Santa Anna agreed and signed both of the treaties. In the first treaty, Santa Anna agreed to end the fighting between Mexico and Texas. Also, the first treaty provided for an exchange of prisoners between the two countries. The second treaty was a secret treaty. In this treaty, Santa Anna agreed that he would attempt to convince the Mexican government to recognize Texas independence.

Santa Anna, having signed the treaties, was taken aboard the ship Invincible for the return voyage to Mexico. However, many Texans protested President David G. Burnet�s decision to let the Mexican president go free. These protestors prevented the ship from departing and demanded that the notorious Santa Anna be executed. President Burnet refused to allow the mob to kill the foreign leader, but he did place him back in prison, thus breaking the first of the two treaties signed at Velasco. Santa Anna would eventually be allowed to return to his home country, but Mexican officials refused to accept the terms of the treaties. Relations between the two countries remained unstable.

The next order of business for the ad interim Texas government was the election of federal officials. Adhering to the requirements established by the Constitution of 1836, President Burnet called for an election to be held in September of 1836. More than 6,000 Texans voted in this election. Sam Houston was elected president of Texas by a majority of votes. Mirabeau Lamar, another hero of the Battle of San Jacinto, was chosen as vice-president. Voters also voted to accept the Constitution of 1836 as a binding contract between them and their government, and they expressed an interest in pursuing annexation to the United States.

After being elected president, Sam Houston selected members of his cabinet based on their ability to solve the country�s pending problems. Stephen F. Austin was appointed as secretary of state, Thomas Rusk became secretary of war and Henry Smith was designated secretary of the treasury.

The first elected congress of the Republic of Texas met at Columbus on October 3, 1836. Since the town of Columbus proved to be too small to accommodate the Texas government, the state legislature suggested that the government be moved to a more suitable location. Soon after, the Texas Congress passed one of its first acts, moving the capital to Houston. Though relatively small itself, Houston quickly grew.

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