Texas Enterprise Fund
Texas Governor's Office of Economic Development and Tourism
Negotiated; $500K–$50M+
Texas deal-closing incentive for large employers
Texas's largest "deal-closing" incentive — discretionary cash grants awarded to companies choosing to locate or significantly expand in Texas over competing states or countries. Requires a competing offer from another jurisdiction. Targets large-scale projects: minimum 75 new permanent full-time jobs in an urban/metro area or 25 in a rural area, plus significant capital investment. Grant amount negotiated based on jobs, wages, and strategic importance.
- Funding type
- Grant
- Level
- State
- Amount range
- $500,000
- Realistic amount
- Most TEF awards fall between $2M and $20M. Very large projects (semiconductor fabs, corporate HQ relocations) have recei…
- Deadline
- Rolling — applications accepted year-round; no fixed cycle. Governor's office evaluates on a project-specific timeline.
- Status
- active
- States
- TX
- Payment model
- milestone
Who qualifies
- Company must be choosing between Texas and at least one competing location outside Texas (another state or country) — a bona fide competing offer is required
- Project must create a minimum of 75 new permanent full-time jobs in an urban/metropolitan area OR 25 new permanent full-time jobs in a rural area (per Texas Government Code §481.078)
- Jobs must pay at least 110% of the county average weekly wage
- Company must commit to a significant capital investment in Texas (amount varies by project; typically $50M+)
- Business must have a 5-year plan with specific job and investment milestones
- Company must be financially sound with demonstrated ability to deliver on commitments
- Award requires tri-party approval: Governor, Lieutenant Governor, and Speaker of the House
Hard requirements
- Must be incorporated
What it covers
Eligible expenses
- TEF is a discretionary cash grant with no restriction on use — companies may apply funds to relocation costs, construction, equipment, training, or general operating expenses
- Capital investments in real property (land, buildings, improvements)
- Machinery, equipment, and technology infrastructure
- Workforce recruitment and training costs
- Infrastructure improvements at the project site
Ineligible expenses
- Projects that do not create net new jobs in Texas (retention-only projects)
- Projects without a genuine competing out-of-state offer
- Projects below the 75-job urban or 25-job rural new-job threshold
- Jobs paying below 110% of county average weekly wage
- Sole proprietorships and most small businesses (significant capital investment requirements make program inaccessible to most SMBs even at the 25-job rural minimum)
- Projects that have already committed to Texas before engaging TEF
How to apply
-
1
Contact the Governor's Office and receive a competing offer
Reach out to the Texas Governor's Office of Economic Development and Tourism to begin a confidential project inquiry. Simultaneously document a genuine competing incentive offer from another jurisdiction — this is a hard requirement.
~10 hrs
-
2
Submit formal TEF application
Complete the TEF application including company financials, project description, job-creation schedule, wage levels by position, capital investment plan, and the competing offer details. Application is evaluated by the Governor's economic development staff.
~40 hrs
-
3
Negotiate grant amount and performance agreement
Governor's office negotiates the grant amount based on total economic impact — jobs, wages, capital investment, and strategic value to Texas. Legal staff draft a project-specific performance agreement with annual milestones.
~20 hrs
-
4
Obtain tri-party approval
Award requires written authorization from the Governor, Lieutenant Governor, and Speaker of the Texas House of Representatives. This is a political approval step — timeline varies.
~0 hrs
-
5
Execute performance agreement and receive disbursement
Sign the TEF performance agreement specifying job and wage milestones by year. Grant is disbursed in tranches tied to verified milestone attainment. TEF staff conduct annual reviews and site verifications.
~8 hrs
TEF targets large employers — the 75-job urban minimum and 25-job rural minimum still require significant scale and capital investment. The competing offer is non-negotiable; without one the application won't advance. Work with the Texas Economic Development Corporation and local EDOs to structure the application — they navigate the tri-party approval process regularly.
Deadline & timing
TEF is demand-driven. Companies should engage the Governor's Office of Economic Development and Tourism early in their site-selection process — ideally 6–12 months before a final location decision. Evaluation and negotiation typically take 3–6 months. Awards are announced via Governor press release and must be approved by the Lieutenant Governor and House Speaker.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.