Texas businesses can get up to $500,000 to train existing workers under state program

Texas businesses looking to train existing employees as they expand, introduce new technology or change operations can apply for up to $500,000 through a state workforce program.

The Texas Workforce Commission announced Tuesday that it is accepting applications for Upskill Texas, a grant program designed to help employers pay for technical training for their current workforce.

Qualifying employers can receive between $150,000 and $500,000, with up to $3,000 available per trainee. Businesses must provide a 50% match toward the project, which can include wages and benefits paid to employees while they undergo training.

The program could provide another workforce-development tool for larger Rio Grande Valley employers as companies across the region expand manufacturing and other operations that increasingly require workers to learn new equipment, technology and production processes.

To qualify, a private employer must have at least 100 employees in Texas. Private for-profit and nonprofit businesses are eligible, while public health care organizations can participate under certain conditions.

Upskill Texas is specifically aimed at companies that are expanding operations, retooling processes, introducing new products or services or undergoing organizational changes that could help avert layoffs.

The money is intended for existing employees rather than primarily serving as a new-hire training program. Employees generally must have worked for the company for at least six months. When workers are trained as a group, the majority of that group must meet the six-month requirement.

Training must be entirely technical.

That could include training delivered in-house or through community and technical colleges, universities, industry-specific training organizations, professional associations or credentialing organizations. Eligible costs can include tuition, instructor salaries, textbooks, manuals and required training materials and supplies. 

Employers can also designate another organization to administer the grant on their behalf, including a community or technical college, third-party trainer or local workforce development board.

The program does not reimburse businesses for employees’ wages, although wages paid while employees are participating in training can count toward the employer’s required contribution. Transportation, lodging, meals and major equipment purchases are also excluded from reimbursement.

Upskill Texas grants run for 12 months, and reimbursements are requested quarterly, according to the Texas Workforce Commission’s program guidelines.

The program is funded through the federal Workforce Innovation and Opportunity Act and was initially launched by the state in 2023 to address skills gaps among existing workers. Texas originally committed $5 million to the pilot program. 

Applications are evaluated in the order they are received, and the Texas Workforce Commission is encouraging businesses to apply early. Incomplete applications will be returned.

Employers interested in applying must first submit an Upskill Texas interest form to request application materials.

Learn more about Upskill Texas and apply through the Texas Workforce Commission.