Houston is one of the nation’s biggest hubs for young professionals, thanks to strong job growth and an affordable cost of living. Between 2020 and 2024, the region added an estimated 240,000 new jobs, part of a broader economic boom across Texas. Now, a new law aims to build on that momentum by expanding access to workforce training and education programs. Senate Bill 1786 (SB 1786) was signed into law on May 27 and takes immediate effect to remove barriers for Texans seeking to enroll in local community and junior college programs. Additional provisions, including regional job demand studies and data analysis, will take effect on September 1. Free Courses for Disadvantaged StudentsSB 1786 expands free dual credit courses for economically disadvantaged students in grades 9–12, helping more Texans earn college credit before graduation. The law also addresses delays in the Texas Higher Education Coordinating Board’s rulemaking for financial aid, speeding up access to grants and loans. It improves coordination across state and federal programs, including Jobs and Education for Texans (JET), P-TECH early college high schools, and TRUE reskilling programs. These changes will begin with the 2025–26 school year. Aligning Funding with Workforce Needs SB 1786 builds on the 2023 overhaul of the state’s community college finance system by tying funding to student outcomes, specifically: Earning degrees or industry-recognized credentials that lead to well-paying jobs Successfully transferring to four-year universities Completing targeted dual credit coursework Supporting  Business Growth and Regional Competitiveness By strengthening access to high-value credentials and aligning education funding with workforce outcomes, SB 1786 reinforces the region’s position as a destination for business investment and expansion. These reforms help ensure Houston has a pipeline of skilled talent ready to meet the needs of employers in high-growth sectors such as energy, life sciences, advanced manufacturing, and technology. As the Partnership works to attract companies and jobs to the region, these policies send a strong signal that Houston is preparing its people for the careers of tomorrow. The law also strengthens the definition of a “credential of value” as one that helps a student earn more than a high school graduate and justifies the cost of their education. Credentials in high-demand sectors, such as healthcare and education, may also qualify. These updates will take effect in the 2027–28 school year. Workforce-Driven Reform The goal of SB 1786 is to reduce redundancy, maximize impact, and ensure postsecondary programs are aligned with the needs of Texas employers. By supporting this legislation, Houston’s business community is helping to sustain a robust talent pipeline for years to come.  

Five years ago, the Partnership released a report highlighting the need to meet demand for middle-skill jobs across the greater Houston area. Since then, Houston’s labor market has continued to heat up, making it one of the top destinations for younger working Texans. In fact, the Kinder Institute has highlighted how the talent pool is continuing to get younger as lawmakers emphasize the importance of more career programs in high schools. Earlier this month, lawmakers delivered a slate of bills to give the next generation a giant leap forward in their careers and addressing workforce demand in key industries. When fully implemented, these policies could create the nation’s largest career pipeline for high school graduates. Leading the charge is House Bill 120 (HB 120), a sweeping overhaul of career and technology education programs in Texas schools. The legislation offers five key opportunities for students: Boosts career readiness Provides an additional $100 per student enrolled in P-TECH and R-PEP programs for urban and rural schools Improves data and accountability Requires more outcome reporting from the Texas Education Agency and requires schools to develop new, measurable goals for student performance in college and the workforce Expands support for graduates Funds post-graduate advising for up to two years, offering pathways to work, college, and wage goals  Increases funding for facilities  Supports career program facilities and covers the cost of up to two certification exams per student  Integrates military pathways  Includes military options in career readiness and provides resources about scholarship opportunities for service-bound students  Ultimately, the goal of HB 120 and the Legislature is to ensure students have access to tools that promote long-term success in college, the workforce, or the military. The legislation also establishes accountability measures to track progress over time. These insights will help Texas better respond to evolving workforce needs and identify emerging opportunities in fast-growing industries, ultimately making the state’s talent pipeline more responsive and competitive. The Partnership is proud to have supported this issue during the 89th Texas Legislature as one of its Executive Priorities. This policy supports a stronger, more inclusive workforce by expanding access to career-connected education and creating opportunity. By equipping more students with the tools to succeed in high-demand fields, Texas is investing in the long-term prosperity of individuals, families, and communities, while strengthening Houston’s position as a place where talent can thrive, and all residents can share in the region’s growth. Click here to download a one-pager with more details on HB 120. More on the Lege Click here to learn more about our Legislative Outcomes Click here to download our End of Session Recap