The Skills Development Fund is Texas's premier workforce training grant program. Administered by the Texas Workforce Commission (TWC), it provides grants to public community and technical colleges to develop customized job training programs in partnership with local businesses. The program helps Texas employers build a skilled workforce while reducing their training costs.
How the Skills Development Fund Works
The Skills Development Fund operates as a partnership between a business (or consortium of businesses) and a public community or technical college. The college applies for the grant on behalf of the business partner and delivers the training. Grant funds cover direct training costs, curriculum development, instructor fees, and training materials.
Important: Businesses do not apply directly for Skills Development Fund grants. The application must come from a public community or technical college partnering with the business.
Eligibility
- The training must serve Texas businesses and Texas workers
- The business partner must be creating new jobs or upgrading the skills of existing employees
- The training must be customized to the specific needs of the business partner
- A public community or technical college must serve as the applicant and training provider
- The business must provide matching resources (which can include in-kind contributions)
What the Grant Covers
- Customized curriculum development
- Instructor salaries and fees
- Training materials and supplies
- Trainee wages during training (in some cases)
- Training equipment and facility costs
How to Apply
- Identify your training needs: Define the skills gaps in your current or incoming workforce that customized training could address.
- Contact your local community college: Find the community or technical college in your area that has experience with Skills Development Fund grants. Most major Texas colleges have dedicated workforce training departments.
- Develop the partnership: Work with the college to design a training program that meets your specific business needs.
- College submits the grant application: The college prepares and submits the application to TWC, including the training plan, budget, and business partner commitments.
- TWC review and award: TWC reviews applications on a rolling basis. Awards are based on job creation or upgrade potential, wage levels, business need, and regional economic impact.
- Training delivery: Once awarded, the college delivers the training according to the approved plan. The business participates in training delivery and provides matching resources as committed.
Industries That Use the Skills Development Fund
The program serves all industries. Common users include manufacturing, healthcare, construction, technology, oil and gas, logistics, and hospitality businesses. Both individual companies and industry consortia can participate.
Grant Size and Duration
Grant amounts vary based on the scope of training and number of trainees. Awards have ranged from under $100,000 for single company projects to over $1 million for large consortium grants. Training periods typically range from a few months to two years.
Find Programs That May Fit Your Business
The Skills Development Fund is one of the strongest workforce programs in Texas. Combined with hiring tax credits, SBA financing, and other incentives, it can significantly reduce the cost of growing your workforce.
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