Texas residents have access to federal grant programs that work the same in every state, plus a layer of state-administered programs funded by federal block grants, TX state appropriations, and partnerships with private foundations. This guide covers the most relevant 2026 programs by category and shows you where to apply.
Federal grants available in Texas
The major federal programs are the same nationwide and account for the largest share of grant dollars residents actually receive:
- Pell Grant — need-based undergraduate aid up to $7,580 for the 2026–27 award year, awarded through the FAFSA.
- FSEOG — supplemental need-based aid administered by participating Texas colleges, with awards between $100 and $4,000.
- TEACH Grant — up to $4,000/yr for students preparing to teach high-need subjects in low-income schools, including many in Texas.
- Federal student loans — not grants, but typically packaged with grant aid.
- SBA programs — the 7(a) loan (up to $5M), 504, microloans up to $50,000, and SBIR/STTR R&D awards for Texas small businesses.
- FEMA Individual Assistance — disaster grants when a federal disaster is declared in Texas.
File the FAFSA once and you are automatically considered for Pell, FSEOG, federal loans, and most Texas need-based aid.
Texas state higher-education grants
Texas Higher Education Coordinating Board (THECB) administers the state's higher-education aid. The flagship program is the TEXAS Grant — Texas's primary need-based grant for residents attending public universities, with annual awards up to roughly $5,900. The Tuition Equalization Grant (TEG) supports residents at private nonprofit Texas institutions, and the Texas Educational Opportunity Grant (TEOG) supports community college students.
Texas does not have a state income tax; CDBG, HOME, LIHEAP, and TANF federal pass-throughs are administered by TDHCA and the Texas Workforce Commission.
Most state aid in Texas requires the FAFSA (or a state-specific application for non-citizens who are TX residents under state policy). State deadlines are usually earlier than the federal FAFSA deadline — apply as soon as the FAFSA opens on October 1.
State-administered federal block grants
Federal funding flows to Texas through several block grants the state then re-distributes:
- LIHEAP — home heating and cooling assistance through the Texas agency that administers low-income energy assistance.
- Weatherization Assistance Program (WAP) — DOE funds for insulation, sealing, and HVAC upgrades for low-income households.
- TANF — cash and work-support assistance through the Texas human-services department.
- CCDF — child-care subsidies for low-income working families.
- CDBG / HOME — community development and affordable-housing funds, administered by the state housing or community-affairs agency.
- SNAP — food benefits up to ~$975/mo for a family of four in the 48 contiguous states (federal entitlement, state-administered).
Apply through your county or local agency; eligibility rules are set partly by federal statute and partly by Texas.
Housing assistance in Texas
The Texas Department of Housing and Community Affairs (TDHCA) is the main state agency for homeownership and rental assistance. Its core 2026 programs include the My First Texas Home loan with up to 5% down payment assistance, the Texas Mortgage Credit Certificate, and the Homes for Texas Heroes program through TSAHC for teachers, EMS, and veterans. Texas also receives federal Section 8 Housing Choice Vouchers that local public housing authorities administer; see our Housing Choice Voucher Program page for how to apply.
For home repair, low-income Texas homeowners aged 62+ in eligible rural areas may qualify for the USDA Section 504 Home Repair grant (up to $10,000 lifetime) or the companion loan (up to $40,000).
Small-business support in Texas
True grants for for-profit small businesses are uncommon; most state programs are loans, tax credits, or training reimbursements. In Texas the main players are the Texas Economic Development Corporation, the Governor's University Research Initiative, and the Texas SBDC Network. Visit the agency portal at businessintexas.com for current open programs.
Federal SBIR/STTR research grants (Phase I ~$314k, Phase II ~$2.1M) are open to Texas small businesses doing R&D for participating agencies. The SBA Microloan program partners with Texas-based intermediaries to lend up to $50,000.
Disaster and emergency assistance
When the President declares a federal disaster in Texas, FEMA opens Individual Assistance grants for temporary housing, home repair, and other serious needs. Register at disasterassistance.gov or 1-800-621-3362. The Texas emergency management agency coordinates state response and may activate state-funded assistance for events that do not reach federal-disaster thresholds.
Dial 211 in Texas to be connected with local nonprofit and government safety-net resources.
How to apply
- File the FAFSA at studentaid.gov — opens October 1 for the following academic year — to unlock both federal and Texas need-based aid.
- Apply for the TEXAS Grant through THECB at www.highered.texas.gov; meet the state's earlier deadlines.
- For housing, go to Texas Department of Housing and Community Affairs (TDHCA) at www.tdhca.state.tx.us and complete a HUD-approved homebuyer education course before requesting down payment assistance.
- For business, contact your local Texas SBDC for a free intake meeting and a referral to the right state or federal program.
- For energy, food, child care, or rental assistance, apply through your county human services agency or call 211.
- For disaster aid, register with FEMA at disasterassistance.gov as soon as a declaration is announced.
There is no application fee for any legitimate federal or Texas state grant. Any service charging to "process," "expedite," or "guarantee" a federal grant is a scam. Report scams to the FTC at reportfraud.ftc.gov and the Texas Attorney General's office.
Common questions
Where do I find the official Texas grant portal? Start with texas.gov for general state services, THECB at www.highered.texas.gov for college aid, and Texas Department of Housing and Community Affairs (TDHCA) at www.tdhca.state.tx.us for housing. For federally funded programs available in Texas, search grants.gov and filter by your state.
Are Texas grants taxable? Grants used for qualified educational expenses (tuition, required fees, books) are generally not taxable; amounts used for room, board, or stipends usually are. Grants to for-profit businesses are generally taxable income. Confirm with a tax professional or IRS Publication 970.
What if my SBA loan or state grant is denied? Ask the lender or agency for the specific reason. You can appeal, fix the issue (credit, documentation, business plan), and reapply. SBDC counselors in Texas provide free help and often spot fixable problems before resubmission.
Where do I report grant scams in Texas? Report scams to the FTC, to the Texas Attorney General's consumer protection office, and — if a federal program was impersonated — to the relevant agency's Inspector General.
Texas residency alone does not qualify you for any grant — every program has its own eligibility criteria around income, household, business sector, project location, or demographic. Apply early, especially for state higher-education grants, which often have deadlines earlier than the federal FAFSA priority date.