At 1 p.m. CDT, forecasters at the U.S. National Hurricane Center in Miami said the former Category 2 hurricane was centered near the U.S.-Mexican border, about 30 miles northwest of Laredo, Texas. The system was moving west-northwest at 13 mph and was expected to weaken into a tropical depression Thursday night.

Sustained winds were 40 mph with higher gusts, and extended 85 miles from the storm's center.

A tropical storm warning from Brownsville to Port Aransas was discontinued.

Since hitting the coast Wednesday afternoon with 100 mph winds, Dolly has delivered as much as 12 inches of rain to the deep south of Texas and northern Mexico. Forecasters said isolated areas could receive up to 20 inches of rain.

Before the storm made landfall, Texas Gov. Rick Perry issued a disaster declaration Tuesday for 14 counties in the projected path. Bush followed up with a federal disaster declaration Thursday.

Wind and flood damage was reported on South Padre Island, which bore the first impact, but damage estimates weren't available early Thursday.