According to Laredo police spokesman Joe Baeza, Timothy Grimmer died Thursday at a San Antonio hospital.
Timothy Grimer’ sister, Ramie, 12, died of her wounds the day before.
The children’s mother, Rachelle Grimmer, 38, was found dead on Monday inside the office in Laredo.
The Texas Department of Health and Human Services said the agency rejected Rachelle Grimmer’s application because she did not submit enough information.
Rachelle Grimmer had been embroiled in a battle with the welfare department to try to gain benefits for her family since July.
The woman took her children to the Texas Health and Human Services Commission office in Laredo on Monday at 5pm and demanded to speak to a supervisor.
Rachelle Grimmer then pulled out a handgun and began threatening several employees, authorities said.
The mother held two employees hostage until a male supervisor stepped in and stayed with Grimmer while she released the other workers.
She took the man and her two children into another room while a SWAT team managed to evacuate 30 people.
During the seven-hour stand-off, the apparent Facebook profile of Ramie Marie Grimmer was updated regularly.
Hostage negotiators were in communication with Rachelle Grimmer but it was intermittent as she frequently hung up, according to police.
Officer Joe Baeza said Tuesday: “About 11:45 last night, she hung up the phone with negotiators, and a little bit later, negotiators heard three shots.”
The SWAT team at the front of the building heard children crying and officers stormed in, finding the three in the front office.
The children were airlifted to a hospital in San Antonio in critical condition. The mother was dead at the scene.
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