Texas Is Investing Billions in Job-Ready Talent: Here’s What CTE Funding Means For Businesses
In 2025, the Texas Legislature invested more than $7 billion in career and technical education (CTE) training programs over two years, the largest CTE investment in state history. The investment comes as Texas continues to lead the nation in job creation, with the U.S. Bureau of Labor Statistics reporting that the state added more jobs than any other state over the past year.
At the same time, the Texas Workforce Commission reports that Texas’ civilian labor force surpassed 15.8 million workers, highlighting both the scale of the state’s economy and the growing need for skilled talent.
Through HB 2, HB 20, and HB 120, Texas is expanding workforce training pathways in high-demand fields such as skilled trades, healthcare, information technology, and manufacturing. These investments are designed to help meet growing employer demand while preparing more Texans for high-wage, in-demand careers.
For businesses, the implications are significant. Through these historic investments, Texas is strengthening one of the factors companies value most when making location decisions: access to skilled talent. By aligning education and workforce training with employer demand, the state is helping companies reduce hiring challenges, lower training costs, and build a deeper pipeline of job-ready workers.
Let’s take a closer look.
Why Texas is Investing in Career and Technical Education
Texas projects a need for 7,000 plumbers, 4,500 HVAC technicians, and 10,000 electricians by 2030. At the same time, forecasts indicate that more than 60% of jobs in Texas will require education or training beyond a high school diploma by 2030, while fewer than 50% of Texans currently earn a postsecondary credential. Gov. Abbott identified expanding career training as an emergency item for the 89th Legislative Session, citing the need to prepare more Texans for high-demand, high-paying careers.
The strategy is clear: strengthen the Texas CTE workforce pipeline early, ensuring students graduate with real-world skills, certifications, and career direction.
What Do HB2, HB 20, and HB 120 Do?
Texas’ new CTE funding is grounded in three laws:
HB 2
From the 89th Legislature, HB 2 includes $153 million specifically for CTE programs, plus $3.5 billion in teacher pay raises and $648 million to support early literacy and numeracy.
HB 20
This law creates the Applied Sciences Pathway, allowing 11th and 12th graders to earn a diploma while completing workforce certificates through higher education partnerships.
HB 120
Expanding access to high-quality CTE programs, HB 120:
- Raises the instructional facility allotment cap from $100 million to $150 million
- Triples the per-student Pathways in Technology Early College High School (P-TECH) allotment
- Increases subsidies for CTE certification exams
- Requires counselors to use up-to-date Texas Workforce Commission (TWC) workforce data
The new CTE funding also includes an additional $14 million grant for community and technical colleges and independent school districts to purchase equipment, helping train 6,500+ students.
What Are the Benefits of Texas’s New CTE Funding?
Together, these laws embed Texas workforce training directly into the high school experience, accelerating the transition from education to employment and creating a stronger, more scalable workforce. Texas already serves more than 1.4 million students annually through career and technical education programs, and these investments are designed to expand access to workforce-aligned training that prepares students for high-demand careers.
The Sectors Benefiting Most from Texas’s CTE Investment
These investments directly support industries that depend on skilled talent, such as:
- Technology: Growing talent pipeline for computer technology in Texas, including IT, coding, and cybersecurity
- Manufacturing: Workforce development for advanced manufacturing in Texas, from welding and machining to drafting and engineering technology
- Healthcare and life sciences: Expanded training pathways for clinical and technical roles
- Skilled trades and construction: Addressing projected shortages in electricians, HVAC techs, and more
What Does CTE Mean for Companies Expanding in Texas?
For employers, the CTE funding means access to available talent that’s trained for specific roles from day one through:
- Early career exposure and certification
- Strong alignment between education and industry demand
- Scalable programs across urban and rural regions
Combined with broader Texas workforce and education initiatives, the Lone Star State reduces hiring risk and training costs.
A Workforce Strategy Built for Long-Term Growth
Texas is redefining workforce development by investing early, scaling quickly, and aligning education with real economic demand.
The Office of the Governor’s Texas Economic Development & Tourism Office works directly with companies to support expansion, workforce planning, and site selection. The Texas Economic Development Corporation (TxEDC) helps connect businesses to regional partners and workforce resources across the state.
If your company depends on skilled talent, now is the time to explore how Texas workforce training can support your next phase of growth.
Frequently Asked Questions
What is CTE funding in Texas?
CTE funding supports career and technical education programs that help students gain industry-relevant skills, certifications, and workforce experience before entering the job market.
How does Texas workforce training help businesses?
Texas workforce training initiatives help employers access qualified talent, reduce hiring challenges, and improve workforce readiness across key industries.
Which industries benefit most from Texas CTE programs?
Technology, advanced manufacturing, healthcare, life sciences, construction, and skilled trades are among the industries that benefit most from expanded career and technical education programs.
What is HB 20 in Texas?
HB 20 creates the Applied Sciences Pathway, allowing high school students to earn workforce credentials while completing their diploma requirements.
How does Texas address skilled labor shortages?
Texas invests in workforce development through career and technical education programs, community colleges, employer partnerships, and workforce-aligned training initiatives that prepare students for in-demand occupations.
Are Texas employers involved in workforce training programs?
Yes. Many workforce programs involve partnerships between employers, schools, community colleges, and workforce organizations to help ensure training reflects current industry needs and hiring requirements.
