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TWC approves FY2026 TANF and childcare allocations, BCY 2026 targets and RESEA state plan
Summary
The Texas Workforce Commission approved fiscal year 2026 allocations for TANF and childcare, adopted childcare performance targets for BCY 2026, approved the 2025 RESEA state plan for submission to the U.S. Department of Labor and several RESEA incentive distributions and reallocations, and confirmed multiple local workforce board nominations.
The Texas Workforce Commission approved several fiscal and program items at a public meeting, including fiscal year 2026 allocations for Temporary Assistance for Needy Families (TANF) and childcare, childcare performance targets for board contract year (BCY) 2026, and the 2025 reemployment services and eligibility assessment (RESEA) state plan for submission to the U.S. Department of Labor.
Chief Financial Officer Chris Nelson presented the FY2026 allocations. The commission adopted a TANF allocation of $74,404,408, which includes a small-board distribution of $289,877, and a childcare allocation of $1,000,465,277. The packet included a 2% required quality fund for local workforce areas, a 4% distribution of quality funds of $59,834,553, a $31,000,000 minted distribution, and a board strategic planning funds distribution of $98,000, according to Nelsons presentation. After questions, a commissioner moved to adopt the allocations; the motion was seconded and carried.
On childcare performance measures, Allison Wilson of Childcare and Early Learning explained that staff proposed BCY 2026 targets for the average number of children served per day. Using the methodology the commission approved last fall, staff projected serving over 148,000 children per day on average in BCY 2026. The commission voted to approve the BCY 2026 childcare performance measures and targets as recommended by staff.
On RESEA, Suzette Robinson with the Workforce Development Division asked the commission to approve the 2025 RESEA state plan, prepared to meet U.S. Department of Labor guidelines. The plan includes $25,266,504 in FY2025 grant funds and $15,262,408 in carryover funds; staff projects combined RESEA services for about 159,450 customers in initial and subsequent meetings over the next year. Robinson said the plan incorporated advance feedback from the Department of Labor and that the submission due date is July 10. The commission approved the RESEA state plan for submission.
Staff also presented a proposal to distribute roughly $1.6 million of a $2.89 million RESEA performance outcome payment award to local workforce development boards as performance and training incentives; commissioners approved that distribution plan. The commission approved a discussion paper to reallocate FY2023 performance incentive balances for Panhandle, Concho Valley and Deep East Texas as contract amendments to BCY 2025, with the reallocated funds required to be spent by Feb. 28, 2026.
Finally, the commission approved a slate of local workforce development board nominations presented by Patricia Martinez for Workforce Solutions boards in Brazos Valley, North Central Texas, South Texas, Middle Rio Grande, Central Texas, Panhandle and Permian Basin.
Ending: The motions to adopt allocations, performance targets, the RESEA state plan, incentive distributions and board nominations were moved, seconded and carried by the commission. Staff said it will finalize documents and submit the RESEA plan to the U.S. Department of Labor by the stated deadline.
