The Texas construction industry faces one of the most severe skilled labor shortages in the country. Electricians, plumbers, HVAC technicians, welders, heavy equipment operators, and project managers are in constant demand — and the pipeline of trained workers is not keeping up. The Skills Development Fund, administered by the Texas Workforce Commission, is a state grant program that can help construction companies build that pipeline.
How the Skills Development Fund Works for Construction
The Skills Development Fund provides grants to community and technical colleges that partner with employers to deliver customized workforce training. For construction companies, this means a local college can design and run training programs specific to your trade and skill requirements — funded by the state.
Your construction company identifies the training needs, partners with a college, and the college applies for the grant. Training is designed to your specifications and can include both classroom instruction and hands-on skills development.
Construction Training Commonly Funded
- Electrical: Apprentice-level electrical training, NEC code instruction, and journeyman exam preparation
- Plumbing: Pipe fitting, plumbing code compliance, and certification preparation
- HVAC: Installation, maintenance, refrigerant handling certification (EPA 608), and system design
- Welding: MIG, TIG, stick, and structural welding with AWS certification preparation
- Heavy equipment operation: Excavators, bulldozers, backhoes, cranes, and other construction equipment
- Concrete and masonry: Finishing, forming, masonry layout, and decorative concrete techniques
- Safety certifications: OSHA 10 and OSHA 30, confined space, fall protection, and scaffolding safety
- Blueprint reading: Construction drawing interpretation, takeoff, and estimating
- Project management: Scheduling, cost control, quality management, and construction software (Procore, PlanGrid, etc.)
- CDL training: Commercial driver's license certification for operating construction vehicles on public roads
Why Consortium Grants Work for Construction
Construction companies can apply individually, but consortium grants — where multiple contractors partner on a single application through a community college — are particularly effective for the industry. Here is why:
- Multiple contractors in a metro area need the same core skills (electricians, plumbers, welders)
- Smaller contractors may not have enough trainees individually to justify a standalone application
- Consortium applications demonstrate broader industry need, which strengthens the case to TWC
- Training costs are shared across employers through the grant
If you are a small or mid-size contractor, ask your local community college whether there is an existing consortium application you can join, or whether the college is interested in organizing one.
Linking Skills Development Fund with Apprenticeship
The Skills Development Fund can complement registered apprenticeship programs. Texas supports registered apprenticeships through the Texas Workforce Commission and the U.S. Department of Labor. An apprenticeship combines on-the-job training with classroom instruction — and the classroom instruction portion may be eligible for Skills Development Fund support.
For construction trades where apprenticeship is the standard path to journeyman status (electrical, plumbing, HVAC, sheet metal), combining apprenticeship with Skills Development Fund grants can significantly reduce your training costs while building a structured career pathway for your workers.
How to Get Started
- Define your skills gaps: Which trades are hardest to hire for? What certifications do your workers need? How many people need training?
- Contact a community college partner: Reach out to the workforce development department at your nearest community college. Many Texas colleges have construction-specific training programs already in place.
- Co-design the curriculum: Work with the college to create a training program that matches your actual job requirements and leads to recognized certifications.
- The college submits the application: The community college applies to TWC with your letter of commitment and workforce projections.
- Training is delivered: On-site at your facilities, at the college, or at a shared training center.
Other Programs for Texas Construction Companies
- SBA 7(a) loans: For equipment, working capital, and facility financing. SBA 7(a) for construction companies guide.
- HUB certification: Opens access to state contracting preferences for qualifying construction firms. Texas HUB certification guide.
- SBA Surety Bond Guarantee: Helps small contractors obtain bid, performance, and payment bonds for larger projects.
- WOTC: Federal tax credit for hiring workers from targeted groups.
- Skills for Small Business: For contractors with fewer than 100 employees, this TWC program provides training through existing college course catalogs.
Bottom Line
The Skills Development Fund directly addresses the biggest challenge facing Texas construction companies — finding and training skilled workers. The program is free for employers, customizable to your specific trade needs, and available to companies of all sizes. If you are a Texas contractor struggling to find trained electricians, plumbers, welders, or operators, this program may be one of the most impactful resources available.
Not sure which programs may fit your construction business? Our free screening report checks your business against 150+ verified programs — grants, tax credits, loans, and incentives — and shows you which ones may match. Start your free screening →