Finding and training qualified workers is one of the biggest challenges Texas businesses face. Whether you need to train new hires, upskill your current workforce, or build an entirely new team for an expansion, Texas has some of the strongest workforce training grant programs in the country. These programs can cover a significant portion of your training costs, reducing one of the largest barriers to business growth.
This guide covers the most important workforce training grants Texas programs available in 2026, including the flagship Skills Development Fund, apprenticeship programs, and other federal and state initiatives.
Skills Development Fund
The Skills Development Fund is the premier workforce training program in Texas and one of the most effective programs of its kind in the country. Administered by the Texas Workforce Commission, the Skills Development Fund provides grants to public community and technical colleges that partner with local businesses to deliver customized workforce training.
How It Works
The Skills Development Fund operates as a partnership between your business and a local community or technical college. Your business identifies the skills your workers need. The college designs and delivers a customized training program. The Skills Development Fund grant pays for the training, including instructor salaries, training materials, equipment, and administrative costs.
You do not apply directly — the community college applies for the grant on behalf of your business (or a consortium of businesses). This means your first step is to contact the workforce training or continuing education department at your nearest community college to discuss your training needs.
What It Covers
- Custom skills training for new hires
- Upskilling programs for existing employees
- Industry-specific technical training
- Safety and compliance training
- Equipment operation and certification
- Management and supervisory training
- English language training and basic skills for the workforce
Award Amounts
Skills Development Fund awards vary widely based on the scope of the training program. Awards have ranged from tens of thousands of dollars for single-company projects to several million dollars for large consortiums. The Texas Workforce Commission evaluates applications based on the number of workers trained, the quality of the jobs created or retained, the business's commitment to the training, and the community college's capacity to deliver.
Industries That Benefit Most
While the Skills Development Fund is available to all industries, sectors with significant training needs see the greatest benefit:
- Manufacturing: Training on equipment operation, CNC machining, welding, quality control, and industrial safety. Full guide to manufacturing grants in Texas.
- Healthcare: Training for medical assistants, nursing support, patient care technicians, and medical records.
- Construction: Training on safety certification, equipment operation, specialized trades, and project management. Full guide to construction grants in Texas.
- Technology: Training on software development, cybersecurity, IT infrastructure, and data analytics.
- Energy: Training on renewable energy technology, pipeline operations, refinery processes, and safety protocols.
Jobs and Education for Texans (JET) Grants
The JET grant program provides funding to public community, state, and technical colleges to purchase and install equipment necessary for the development of career and technical education courses. If your industry needs workers trained on specific equipment, JET grants can fund the purchase of that equipment at your local college, creating a pipeline of trained workers for your business.
How JET Benefits Businesses
JET grants do not go directly to businesses — they go to colleges to build training capacity. However, the practical impact on businesses is significant. When a local college receives a JET grant to establish or expand a training program in your industry, it creates a steady pipeline of workers with the skills you need. Many JET-funded programs are developed in consultation with local employers to ensure the training aligns with actual industry needs.
Eligible Areas
JET grants target high-demand occupations across various industries, with a focus on occupations that lead to industry-recognized certifications and credentials. Common areas include welding, machining, electrical technology, HVAC, automotive technology, nursing, medical technology, information technology, and commercial driving.
Apprenticeship Programs
Texas Registered Apprenticeship
Registered Apprenticeship programs combine on-the-job training with related technical instruction. The Texas Workforce Commission supports apprenticeship programs through state coordination, and the U.S. Department of Labor provides national oversight and recognition.
Benefits for businesses include:
- Reduced recruitment costs: Apprentices train while they work, reducing the need for external hiring of skilled workers.
- Customized training: You design the on-the-job training component to match your specific business needs.
- Tax credits: Employers may qualify for the federal Work Opportunity Tax Credit for hiring apprentices who meet WOTC eligibility criteria.
- Retention: Apprenticeship programs typically have higher employee retention rates than traditional hiring.
Industry-Recognized Apprenticeship Programs (IRAPs)
In addition to traditional Registered Apprenticeship, Industry-Recognized Apprenticeship Programs provide another pathway for businesses to establish structured training. IRAPs are developed by industry groups, employers, or educational institutions and recognized by Standards Recognition Entities. They offer more flexibility in program design while still providing structured, competency-based training.
Federal Workforce Programs Available in Texas
Workforce Innovation and Opportunity Act (WIOA)
WIOA is the primary federal workforce development law, and Texas receives significant WIOA funding through its 28 Local Workforce Development Boards. Businesses can benefit from WIOA in several ways:
- On-the-Job Training (OJT): WIOA funds reimburse employers up to 50% of a new employee's wages during a training period. This reduces your cost of training new hires who need to develop specific skills.
- Incumbent Worker Training: WIOA provides grants to train existing employees who need new skills due to changing technology or business conditions.
- Customized Training: Businesses can partner with local Workforce Solutions offices to design customized training programs partially funded by WIOA.
Work Opportunity Tax Credit (WOTC)
While not a training grant, the WOTC provides federal tax credits of up to $2,400 to $9,600 per qualifying new hire from targeted groups, including veterans, SNAP recipients, ex-felons, and long-term unemployed individuals. The credit can offset training costs for new employees from these groups. Full guide to tax credits for Texas businesses.
Local and Regional Training Programs
Many Texas cities and regions have their own workforce training programs:
- Workforce Solutions offices: Texas's 28 Local Workforce Development Boards operate Workforce Solutions offices across the state. These offices provide free recruitment assistance, job posting services, and connections to training programs.
- City economic development programs: Cities like Houston, Dallas, San Antonio, and Austin often include workforce training incentives as part of economic development agreements with businesses that are expanding or relocating.
- Industry sector partnerships: Regional industry partnerships bring together employers in a common sector to coordinate training needs and access pooled resources.
How to Access Workforce Training Grants
- Contact your local community college: The workforce training or continuing education department can discuss your needs and determine whether a Skills Development Fund application makes sense.
- Connect with your Workforce Solutions office: Your local Workforce Solutions office can connect you with WIOA-funded OJT programs, recruitment services, and other resources.
- Explore apprenticeship: Contact the Texas Workforce Commission Apprenticeship division to learn about establishing or joining an apprenticeship program.
- Consider consortiums: If you are a smaller business, consider joining a consortium of businesses for a Skills Development Fund application. Consortiums can access larger grants and share training resources.
- Document your training needs: Before approaching any program, clearly document the skills gaps in your workforce, the number of workers who need training, and the business impact of the training. This information is essential for grant applications.
Bottom Line
Workforce training grants in Texas are among the most accessible and impactful government programs available. The Skills Development Fund alone has helped thousands of Texas businesses train their workers at no or low cost, and programs like WIOA OJT, JET grants, and apprenticeship provide additional pathways. The key is connecting with your local community college and Workforce Solutions office to explore the options that fit your training needs.
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