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Skills Development FundThe Skills Development Fund is Texas' premier job-training program providing training opportunities for Texas businesses and workers. Funding for the program is administered by the Texas Workforce Commission. Success is achieved through collaboration among businesses, public community and technical colleges, Workforce Development Boards and economic development partners.

The Skills Development Fund program assists businesses and trade unions by financing the design and implementation of customized job-training projects. This fund successfully merges business needs and local customized training opportunities into a winning formula to increase the skills levels and wages of the Texas workforce.

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Becoming a Partner

As a Texas employer, you are the focus of the Skills Development Fund. You provide two things — a desire to collaborate with the other partners involved with the project and the commitment to see the project through to completion. If you would like to take advantage of SDF training, please reach out to your local eligible grant applicant or your regional SDF Outreach Team representative.

To be considered for a Skills Development Fund grant, the private business, business consortium or trade union must:

  • Partner with an eligible grant applicant, which is a public community or technical college, the Texas Engineering Extension Service, or a private, nonprofit community-based organization in partnership with one of those institutions.
  • Be actively involved in the planning and design of the customized training project.
  • Pay wages to the employees who successfully complete the training program that are equal to or greater than the prevailing wage for the occupation in the local labor market.
  • Disclose any other state or federal grant funds sought or awarded for the proposed training project.
  • Sign an agreement with the grant applicant outlining each entity's roles and responsibilities in the training project, including reporting requirements related to trainee participation.
  • Provide equal employment opportunity documentation as well as information on the occupations for training, employment benefits, wages and social security numbers for trainees.
  • Use WorkinTexas.com to post openings for new workers trained under the project.

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Skills Development Fund Outreach Team

The Skills Development Fund Outreach Team works with businesses and training providers to support application development and submission. The Skills Development Fund and Self-Sufficiency Fund Grants Team provides grant management support. If you have any questions, please send an email to Skills@twc.texas.gov or reach out to a Regional Representative as identified on the Skills Development Fund Outreach Team MapPDF.

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Grant Award Information

Grants for a single business may be limited to $500,000. Tuition, curriculum development, instructor fees and training materials can be included, however, trainee wages, drug testing and certain travel cost and equipment purchases cannot be covered. Contract typically are for 12 months.

During fiscal year 2021, TWC:

  • Awarded 43 Skills Development Fund grants totaling $13,831,827
  • Served 44 Texas businesses
  • Supported the creation of 4,925 new jobs
  • Upgraded the skills 8,397 workers in existing jobs

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Quality Proposals

Collaboration between businesses, Workforce Development Boards, and economic development and training partners is required. Criteria considered in making funding recommendations include:

  • Positive economic impact on the local region
  • The applicant's current and past performance on Skills Development Fund grants
  • Equitable geographic distribution of funds
  • Inclusion of small- and medium-sized businesses
  • The fiscal stability of the business partners
  • Cost per trainee in comparison to the state average

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Additional Program Requirements

In addition to identifying your training needs and the number of employees to be trained, you must provide information about your business. The specific items required from participating employers include identifying information for your business, wage ranges of each job title to be trained, and other individual identification information that may be required by the eligible grant applicant or training provider. Your grant applicant or SDF Outreach Team regional representative can help you with this information when you begin the application process. 

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TWC Business Outreach and Project Development Team

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