Texas Voters Approve $850 Million in Workforce Development Funding

In a win for workforce development, Texas voters have approved a constitutional amendment establishing an $850 million endowment for Texas State Technical College (TSTC).

The move comes as the construction industry battles a nationwide labor shortage, with 92% of firms struggling to find qualified workers and project delays made worse by skills gaps and immigration-related disruptions.

The funding aims to address issues that have hobbled campus improvements and program expansion across TSTC’s 11 campuses, according to the Texas Tribune.

Construction Grapples with Labor Shortage Nationwide

The construction industry’s labor challenges are unfolding against the backdrop of a broader economic slowdown, according to Michael Guckes, Chief Economist at ConstructConnect, who recently reported that job growth weakened throughout the year.

The ongoing Federal government shutdown has further complicated the picture, Guckes said, halting the release of September’s official job and wage data from the Bureau of Labor Statistics. Private sector reports, however, suggest a continuation of sluggish hiring trends, mirroring earlier months.

While official wage figures are unavailable, Guckes reported that prior data indicate steady annual growth of around 4%, with the average construction wage estimated at $40.13 per hour for September.

Survey Finds Severe Labor Shortage and Related Project Delays

The push for the funding gained traction after Governor Greg Abbott prioritized workforce training in response to growing concerns from Texas employers about a shortage of skilled workers in trades such as plumbing, welding, HVAC, and electrical fields.

By 2030, the state is projected to need 7,000 plumbers, 4,500 HVAC technicians, and 10,000 electricians.

Texas ranked among the top three states in U.S. data center construction starts, with $5 billion in spending over the trailing 12 months through September 2025, according to ConstructConnect Chief Economist Michael Guckes.

Get a Job After Graduation, Guaranteed

TSTC operates under a performance-based funding model, where the state only pays the college if graduates secure jobs in their field within six months of completing their training.

If graduates fail to find relevant employment, they are entitled to a refund. This model, combined with gaps in legislative funding and the inability to issue bonds, has made it challenging for TSTC to plan and execute long-term, mission-boosting projects.

A screenshot from the Texas State Technical College (TSTC) website, which has a performance-based funding model, where the state only pays the college if graduates secure jobs in their field within six months of completing their training. Image: Texas State Technical College

Why It Takes a Constitutional Amendment

Unlike community colleges, Texas State Technical College lacks taxing authority and cannot issue bonds, which limits its ability to fund growth independently.

To address this, voters approved a constitutional amendment creating an $850 million endowment, funded by the Texas general revenue fund and managed through the Texas Institution Infrastructure Fund.

A portion will support the new Workforce Education Fund, generating an estimated $40 million annually for capital improvements.

A Boost for Texas’ Economic Future

TSTC officials view the endowment as a crucial step toward strengthening Texas’s economic future. By expanding technical education programs and addressing capacity constraints, the funding is expected to help meet the state’s growing demand for a skilled workforce.