SB2448

Regular Session

Relating to the establishment of the Rural Workforce Development Grant Program.

Q: What does Texas SB2448 do?

SB2448 mandates the Texas Workforce Commission (TWC) to establish a grant program funding nonprofits to align rural educational curricula with specific industry labor demands. While the law targets nonprofits as the direct payees, rural employers must actively collaborate to define the "skills gap" to access this subsidized workforce development pipeline. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: Q1/Q2 2026 (Projected).

Q: Who authored SB2448?

SB2448 was authored by Texas Senator Kevin Sparks during the Regular Session.

Q: When was SB2448 signed into law?

SB2448 was signed into law by Governor Greg Abbott on May 30, 2025.

Q: Which agencies enforce SB2448?

SB2448 is enforced by Texas Workforce Commission.

Q: How urgent is compliance with SB2448?

The compliance urgency for SB2448 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q: What is the cost impact of SB2448?

The cost impact of SB2448 is estimated as "low". This may vary based on industry and implementation requirements.

Q: What topics does SB2448 address?

SB2448 addresses topics including labor, labor--workforce development, labor--workforce development--rural, state finances and state finances--management & control.

ModeratePlan for compliance

Low Cost

Effective:2025-09-01

Enforcing Agencies

Texas Workforce Commission

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: Q1/Q2 2026 (Projected). While the law is effective in 2025, the Request for Applications (RFA) will not open until TWC rules are finalized. You must have partnerships formed before the RFA release.
Agency Rulemaking: The TWC is required to adopt rules "as soon as practicable" after September 1, 2025. Expect a Regulatory Gray Zone between Sept 2025 and Jan 2026 where eligibility criteria (specifically the definition of "rural") are debated and finalized.

Immediate Action Plan

Audit Geography: Determine if your facility falls within likely "rural" definitions (e.g., counties with population < 50,000).
Formalize Partnerships: Nonprofits and employers must draft Letters of Intent with local community colleges or ISDs now; do not wait for the RFA.
Quantify the Gap: HR Directors must prepare a report detailing specific technical skills lacking in the current local applicant pool.
Monitor the Docket: Assign Government Affairs staff to watch the TWC rulemaking docket starting September 1, 2025, to comment on the definition of "Rural Area."

Operational Changes Required

Contracts

Memoranda of Understanding (MOUs): Nonprofits must execute formal MOUs with rural school districts or higher education institutions immediately. These agreements must explicitly outline the scope of "technical assistance" to be provided.
Grant Agreements: Successful applicants will sign binding contracts with the TWC. Legal counsel must review these for clawback provisions (Sec. 302.304) which allow the state to recover funds if specific performance metrics regarding workforce alignment are not met.

Hiring/Training

HR Data Aggregation: Rural employers must shift HR focus from simple recruiting to demand forecasting. You must quantify specific skill deficiencies (e.g., "PLC programming," "Level II Welding") to provide the evidentiary basis for the nonprofit's grant application.
Grant Administration: Nonprofits acting as the prime recipient must designate a compliance officer responsible for tracking TWC reporting standards.

Reporting & Record-Keeping

Financial Segregation: Grant funds must be tracked separately from general operating funds to facilitate state audits.
Outcome Metrics: Recipients must document that the technical assistance provided resulted in a tangible increase in aligned training programs. Retain all records for 7 years to satisfy standard TWC audit windows.

Fees & Costs

No New Fees: There are no statutory fees to apply.
Administrative Overhead: Organizations should budget for legal review of TWC contracts and the administrative time required to aggregate workforce data.

Strategic Ambiguities & Considerations

The statute leaves three critical definitions to TWC rulemaking. Your ability to access funds depends on how these are defined during the public comment period:

1. "Rural Area": The bill does not define this. TWC could use USDA definitions, Office of Rural Health definitions, or population density. If you are on the exurban fringe, you are at risk of exclusion.
2. "Urgent Workforce Demands": It is unclear if this prioritizes high-volume shortages (e.g., general labor) or high-skill shortages (e.g., specialized technicians).
3. Appropriation Risk: The Fiscal Note uses an illustrative $10 million/year, but the program is subject to legislative appropriation. The law creates the *structure*, but the *funding* is not guaranteed until the budget is certified.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsLabor Labor--workforce Development Labor--workforce Development--rural State Finances State Finances--management & Control Education Agency, Texas Higher Education Coordinating Board, Texas Workforce Commission, Texas Charitable & Nonprofit Organizations

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 2448
	By: Sparks
	Economic Development
	4/4/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Small rural communities in our state can lack the economies of scale needed to grow and improve the workforce and prepare students for higher education and the workforce. Currently, there are successful models, using technical assistance providers, that work with local communities to expand workforce opportunities with good jobs, in areas such as agriculture, health care, and technology, and to align institutions of higher education and rural school districts to prepare students for college and careers.

To help scale these models, S.B. 2448 adds to current law a rural workforce development program at the Texas Workforce Commission (TWC) to support measurable programs advancing college and career readiness, skill development, and work experience. The bill authorizes TWC to award grants for technical assistance to one or more nonprofit organizations to assist a rural community's alignment of workforce, higher education, and education goals, including access and attainment of postsecondary credentials and degrees, and also allows grants to local entities performing activities related to the program.

As proposed, S.B. 2448 amends current law relating to rural workforce development.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter A, Chapter 302, Labor Code, by adding Section 302.021, as follows:

Sec. 302.021.� RURAL WORKFORCE DEVELOPMENT.� (a) Provides that the purpose of this section is to enhance the employability, earnings, and standard of living of the people living in rural communities of this state, through job creation and expansion, education, and skills training.

(b) Requires the Texas Workforce Commission (TWC), in consultation with the Texas Education Agency and the Texas Higher Education Coordinating Board, to administer a rural workforce development program to support certain measurable programs advancing college and career readiness, skill development, and work experience opportunities.

(d) Authorizes TWC to award grants for technical assistance to one or more nonprofit organizations with experience in improving outcomes, including students' college and career outcomes, in rural communities in this state. Requires the nonprofit organization to assist a rural community's alignment of workforce, higher education, and education goals, including access and attainment of postsecondary credentials and degrees.

(e) Authorizes TWC to accept gifts, grants, and donations from any public or private source for the purposes of the program and is required to administer the program using money appropriated to TWC or money received from other sources.

SECTION 2.� Effective date: September 1, 2025.

Senate Authors

Sen. Kevin SparksRepublican · Primary Author

House Sponsors

Rep. Trent AshbyRepublican · Primary Sponsor

Joint Sponsors

Bill Text(with markup)

S.B. No. 2448

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the establishment of the Rural Workforce Development
	Grant Program.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Chapter 302, Labor Code, is amended by adding
	Subchapter J to read as follows:
	SUBCHAPTER J. RURAL WORKFORCE DEVELOPMENT GRANT PROGRAM
	Sec. 302.301. DEFINITIONS. In this subchapter:
	(1) "Institution of higher education" has the meaning
	assigned by Section 61.003, Education Code.
	(2) "Nonprofit organization" means an organization
	exempt from federal income taxation under Section 501(a), Internal
	Revenue Code of 1986, as an organization described by Section
	501(c)(3) of that code.
	(3) "Program" means the Rural Workforce Development
	Grant Program established under this subchapter.
	Sec. 302.302. PROGRAM ESTABLISHMENT AND ADMINISTRATION.
	The commission, in consultation with the Texas Education Agency and
	the Texas Higher Education Coordinating Board, shall establish and
	administer the Rural Workforce Development Grant Program under
	which the commission may award grants to one or more nonprofit
	organizations to provide technical assistance and support to
	institutions of higher education and school districts located in
	rural areas of the state in aligning and delivering workforce
	training and higher education programs to address skills gaps to
	meet urgent workforce demands of rural areas.
	Sec. 302.303. GRANT ELIGIBILITY. To be eligible for a grant
	under the program, a nonprofit organization must:
	(1) apply to the commission in the manner prescribed
	by commission rule;
	(2) demonstrate experience in effectively providing
	technical assistance and support to institutions of higher
	education or school districts located in a rural area of this state
	in aligning and delivering workforce training and higher education
	programs to address skills gaps to meet the area's urgent workforce
	demands; and
	(3) satisfy any other relevant criteria prescribed by
	commission rule.
	Sec. 302.304. GRANT REQUIREMENTS. (a) The commission may
	award a grant to an eligible nonprofit organization under the
	program only if the organization enters into a contract with the
	commission that includes conditions providing the commission with
	sufficient control to ensure the public purpose of improving rural
	workforce development is accomplished and the state receives a
	return benefit.
	(b) Grant money awarded to an eligible nonprofit
	organization under the program may be used by the organization only
	for costs associated with providing technical assistance and
	support to an institution of higher education or school district
	located in a rural area of this state in aligning and delivering
	workforce training and higher education programs to address skills
	gaps to meet the area's urgent workforce demands.
	Sec. 302.305. FUNDING. In addition to any money
	appropriated for the program, the commission may solicit and accept
	gifts, grants, and donations from any public or private source for
	the program.
	Sec. 302.306. RULES; REVIEW. The commission shall:
	(1) adopt rules for the administration of this
	subchapter; and
	(2) periodically verify that grant money awarded to a
	nonprofit organization under the program is being used
	appropriately.
	Sec. 302.307. ANNUAL REPORT. Not later than December 1 of
	each year, the commission shall submit to the governor, the
	lieutenant governor, the speaker of the house of representatives,
	and each standing committee of the legislature with primary
	jurisdiction over workforce development a report regarding:
	(1) any grants awarded under the program during the
	most recent state fiscal year; and
	(2) the program's effectiveness.
	SECTION 2. The Texas Workforce Commission shall adopt the
	rules required under Subchapter J, Chapter 302, Labor Code, as
	added by this Act, as soon as practicable after the effective date
	of this Act.
	SECTION 3. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 6, 2025

TO:	Honorable Phil King, Chair, Senate Committee on Economic Development

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB2448 by Sparks (Relating to rural workforce development.), As Introduced

As the amount of funding which the Legislature would appropriate for the Rural Workforce Development Program to fund competitive grants to local entities and non-profits to improve the employability, earnings, and standard of living of rural Texans through job creation, education, and skills training is unknown, the fiscal impact to the state cannot be determined. However, this estimate assumes the Texas Workforce Commission would require additional resources to implement the grant program if funds were appropriated for this purpose.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

The bill would amend the Labor Code to establish the Rural Workforce Development Program to be administered by the Texas Workforce Commission (TWC). The bill would require TWC to collaborate with the Texas Education Agency (TEA) and the Texas Higher Education Coordinating Board (THECB) in awarding competitive grants to local entities and non-profits to improve the employability, earnings, and standard of living of rural Texans through job creation, education, and skills training.

The number of grants provided and the award amounts would be subject to Legislative appropriation discretion. As the amount the Legislature would appropriate in funding for this purpose is unknown, this component of the fiscal impact cannot be determined. If funding is appropriated then the TWC would need staffing resources to develop and implement a grant application procedure and establish and administer the program.

For illustrative purposes and based on information provided by the TWC, if the Legislature were to appropriate approximately $10,000,000 each fiscal year in General Revenue funding for this program to serve an estimated 1,140 participants each year, the agency would require an additional 2.0 Grant Specialist III positions ($70,662 with $21,128 in benefits each fiscal year per position) for program administration and to provide grant oversight.

Based on the analysis of the THECB and TEA, this estimate assumes no significant fiscal impact to the state for these agencies to implement the bill's provisions.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 320 Texas Workforce Commission, 701 Texas Education Agency, 781 Higher Education Coordinating Board

LBB Staff:

JMc, RStu, GDZ, JBel, CMA

Related Legislation

Explore more bills from this author and on related topics

Frequently Asked Questions

Common questions about SB2448

What does Texas SB2448 do?