The children, ages 3 and 8, were killed when a tree fell on a auto Saturday.
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CNN affiliate KWTX reported widespread damage in the Robertson County town of Franklin, including uprooted trees and roofs ripped off buildings.
The entire town of Franklin and neighboring Bremond lost electricity, with power expected to be restored Saturday night.
To the north, dime-sized hail pounded the Dallas-Fort Worth area.
Texas experienced the beginning of the unsafe and severe storms Saturday.
The massive storm system that killed several people from Texas to MS is now barreling east, threatening to spawn tornadoes and other catastrophic weather from New England to the Gulf Coast.
Two children were killed on a back road in East Texas when a pine tree fell onto the vehicle in which they were riding in a severe thunderstorm Saturday near Pollok, about 150 miles (241 kilometres) southeast of Dallas.
The Storm Prediction Center has placed most of the state, including central Maryland, under an enhanced risk for severe storms. This system will bring with it a threat of severe weather both in the morning and again later afternoon on Sunday.
The storms most capable of producing tornadoes and large hail will be the individual, rotating cells that form ahead of a larger complex of thunderstorms.
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Heavy rains and storms raked MS into the night Saturday as the storms moved east. The advisory, which began Sunday morning, also spans Hunterdon, Somerset and Morris counties in New Jersey.
The energy from warm afternoon temperatures will diminish, but the risk for tornadoes will not be over.
One person was killed in northeastern MS when a tree crashed onto his trailer, Monroe County Road Manager Sonny Clay said at a news conference, adding that a tornado had struck.
Tornadoes at that time can be especially unsafe since they are hard to see and people are less likely to receive warnings while they're asleep.
Two different rounds of strong storms are expected to track through the WJZ-TV viewing area.
The biggest threat with the storms will be damaging winds with the possibility of a tornado.
Georgia's Augusta National Golf Club is included in the slight risk area Sunday as the Masters golf tournament concludes.
The warning comes as powerful storms have moved across the South and have killed at least two people. The best areas to see this storm activity will be along and east of the I-75 corridor.
A preliminary damage survey showed an EF-3 tornado, with winds up to 140 miles per hour, touched down in Robertson County, the NWS in Fort Worth said.
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A spokeswoman for the Monroe County Sheriff's Office said authorities were in Hamilton and could not be reached for confirmation. National Weather Service meteorologist John Moore said a possible twister touched down in the Vicksburg, Mississippi, area.
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