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Texas Skills Development Fund
General · Texas Workforce Commission · TX
The Texas Skills Development Fund is a state grant from the Texas Workforce Commission that pays for customized job-training projects, with funds going to a partnering Texas college or training provider rather than directly to the business, and it's meant for Texas employers training new or existing workers.
The Texas Skills Development Fund is a state grant program run by the Texas Workforce Commission (TWC) that pays for customized job-training projects for Texas employers. Rather than sending cash directly to a business, the grant money flows to a partnering public community or technical college, a local workforce board, or a Texas A&M extension office, which designs and delivers the training jointly with the employer.
Awards can reach up to $500,000 per project, though the exact amount depends on the scope of the training plan and current funding rounds. Businesses interested in this program must work with an approved educational or training partner to develop a customized curriculum for new hires or existing (incumbent) workers. In exchange for the training investment, participating employers are generally required to pay trained workers at or above the local prevailing wage.
This program matters to small-business owners in Texas because it lowers the cost of upskilling employees or onboarding new hires with specialized skills, without requiring the business itself to manage or pay for the entire training program out of pocket. Because the grant is paid to the training provider rather than the company, the process differs from a typical direct-cash small business grant — it's a workforce development tool.
Deadlines and funding rounds change, so applicants should check the Texas Workforce Commission's official site for current openings, award amounts, and full eligibility requirements before applying.
Who qualifies
How to apply
Questions people ask
Is this a grant or a loan?
It's a grant — no repayment is required.
Do I receive the money directly?
No, the funds go to the partnering college or training provider on behalf of the employer, not as direct cash to the business.
Who is eligible?
Texas employers who partner with a public community/technical college, workforce board, or Texas A&M extension to train workers.
How much can be awarded?
Up to $500,000 per customized training project, according to the program note.
What's the deadline?
There isn't a fixed deadline listed — check current funding rounds at the official TWC site.
Where do I apply?
Through the Texas Workforce Commission's Skills Development Fund page, in partnership with an approved training provider.
Is the grant taxable?
Confirm at the source — this isn't specified in the available information.
What must the business do in return?
Pay trained workers at or above the local prevailing wage.
Can I apply without a college partner?
No, the program requires partnering with a public community/technical college, workforce board, or Texas A&M extension.
Is this only for new hires?
No, it can be used for both new and incumbent (existing) workers.
Is this available outside Texas?
No, it's limited to Texas employers (TX only).
What kind of training does it cover?
Customized job-training projects designed jointly by the employer and the educational partner.
Opportunity number: not published. Source: curated + verified (official state source, 2026). GetFundedUSA is independent and not affiliated with Texas Workforce Commission; always confirm current deadlines, amounts and eligibility on the sponsor's own page before applying.