Texas operates a robust set of workforce programs designed to help employers recruit, train, and retain workers. These programs provide direct financial benefits through training grants, tax credits for hiring, apprenticeship support, and workforce development partnerships. For Texas employers facing hiring challenges or needing to upskill their workforce, these programs can significantly reduce costs.
Skills Development Fund
The Skills Development Fund is the state's primary workforce training grant program, administered by the Texas Workforce Commission (TWC). It provides grants to public community and technical colleges that partner with employers to deliver customized job training. Employers work with a college to design a training program tailored to their specific needs, and the grant covers the training costs.
Key features:
- Grants fund customized training for new or existing employees
- Training is delivered through the community college partner
- Businesses of any size can participate
- Multiple employers can partner on a single grant application
- Typical grant amounts range from $50,000 to several million
Detailed workforce training grants guide.
Jobs and Education for Texans (JET) Grant Program
The JET program provides grants to public community, technical, and state colleges to purchase and install equipment necessary for developing career and technical education courses. While the grant goes to the educational institution, employers benefit because the programs are designed to train workers in high-demand occupations. Employers can influence program design by partnering with the applying institution.
Registered Apprenticeship
Texas supports registered apprenticeship programs through the TWC and the U.S. Department of Labor. Apprenticeship programs combine on-the-job training with related technical instruction. Benefits for employers include:
- Structured training that produces workers with exactly the skills your business needs
- Potential access to training funds through the Skills Development Fund or WIOA
- Apprentice wages are typically lower than journeyman rates during the training period
- Higher retention rates compared to traditionally hired employees
- Industry-recognized credentials for completers
Workforce Innovation and Opportunity Act (WIOA) Programs
WIOA funds are administered through local workforce development boards across Texas. Employers can benefit from several WIOA-funded services:
On-the-Job Training (OJT)
Employers hire eligible workers and receive reimbursement for a portion of the worker's wages during the training period (typically 50% of wages for up to 6 months). The employer provides the training, and the workforce board provides the wage subsidy. This program is accessed through your local Workforce Solutions office.
Incumbent Worker Training
WIOA funds can support training for current employees who need to upgrade their skills. This helps employers retain workers and avoid layoffs by providing funding for skills upgrades.
Customized Training
WIOA customized training is designed to meet the specific requirements of an employer or group of employers. The employer pays at least 50% of the training costs, and WIOA funds cover the remainder.
Work Opportunity Tax Credit (WOTC)
WOTC is a federal tax credit available to Texas employers who hire individuals from specific targeted groups:
- Veterans (including disabled veterans)
- SNAP (food stamp) recipients
- TANF recipients
- Designated community residents (empowerment zones)
- Vocational rehabilitation referrals
- Ex-felons
- Supplemental Security Income (SSI) recipients
- Summer youth employees from empowerment zones
- Long-term unemployment recipients
Credits range from $2,400 to $9,600 per qualifying employee. The TWC processes WOTC certifications for Texas employers. The credit is claimed on the employer's federal tax return. Tax credit programs guide.
Texas Workforce Solutions (Local Boards)
Texas has 28 local workforce development boards operating under the Workforce Solutions brand. These boards provide employer services including:
- Free job posting on WorkInTexas.com
- Candidate screening and referrals
- Hiring events and job fairs
- Labor market information
- WOTC pre-screening
- Access to OJT, incumbent worker, and customized training funds
- Rapid response services for layoffs or business transitions
Federal Bonding Program
The Federal Bonding Program provides fidelity bonds at no cost to employers who hire individuals with barriers to employment, including ex-offenders, individuals in recovery, and others who may be considered higher risk. The bond protects the employer against employee dishonesty and lasts for six months.
Build Your Workforce Strategy
These workforce programs can be combined with other business incentives. Our screening report checks your business against 150+ verified programs — including workforce grants, tax credits, loans, and other incentives — and identifies which ones may match your situation. Start your free screening →