You'll notice that in 1900 that Galveston was the biggest city in Texas.
So not only did Galveston rebuild without the help of the federal government, they rebuilt smartly without the help of the government. The residents of Galveston didn't rebuild where their homes and businesses were destroyed. They rebuilt 50 miles inland in a city called "Houston".
Yes, the 1900 storm was one of the few that built a city, not just tore one down.
Because of the storm, the Houston Ship Channel was built. The industry and resulting population grew from that.