Free Higher Education for Texas Students: How Local Universities Are Tackling the Labor Shortage

West Texas is experiencing a severe shortage of qualified workers — a serious challenge for the region's economy. Local universities are doing their best to respond. The University of Texas Permian Basin (UTPB) is actively expanding student support and increasing scholarship opportunities.

The goal is ambitious: to meet the projected need for over 38,000 college-educated workers in the region over the next two decades.

Why West Texas lacks skilled workers?

Texas has the eighth-largest economy in the world, with a GDP of $2.4 trillion — surpassing that of Canada, Italy, or Russia. While oil and gas remain the backbone of the state's economy, Texas has also transformed into a major industrial hub in recent years. With no personal or corporate income tax and access to low-cost energy, the state has become a magnet for companies relocating from other parts of the U.S. and Europe.

In 2023 alone, Texas added over 600,000 new jobs, many of them in the real economy. More than 15 million people are already employed in industry and manufacturing, but the demand for skilled workers continues to grow. The rapid expansion of enterprises and production facilities requires a steady inflow of qualified talent — especially in areas like the Permian Basin, where resource extraction, logistics, and refining are booming.

The shortage is especially critical in the oil and gas sector, where drill engineers, mechanics, and equipment operators are in high demand. Many companies are struggling to find qualified personnel and are increasingly forced to recruit from outside the region.

On top of this, fast economic growth drives demand in infrastructure, transportation, education, healthcare, and other services. Combined with the retirement of experienced professionals, this places even greater strain on the local workforce.

Challenges in attracting and retaining talent

The unemployment rate in the region is very low — just 2.6% in the city of Midland — indicating that nearly the entire local workforce is already engaged. However, high housing costs and limited infrastructure, including a lack of childcare facilities, make it difficult to attract new workers and retain current ones.

To respond more effectively to labor market demands, local universities like UTPB are expanding workforce training programs and offering enhanced financial aid to students.

Free tuition for thousands of students

Launched in 2022, the Falcon Free program provides free tuition for students from families earning up to $100,000 per year. During the 2023–2024 academic year, more than 1,600 students received full coverage for tuition and mandatory fees. The program supports both on-campus and online learners. To qualify, students simply need to apply to the university and complete either the FAFSA or TASFA financial aid forms.

Falcon Free is funded through Promise Plus, a $300 million endowment established by the UT System Board of Regents. Each year, the fund allocates about $1 million specifically for UTPB students, equivalent to a sustained endowment of $22 million.

Growing scholarship funds and community involvement

UTPB is actively raising funds to expand scholarship opportunities. At the 2024 Scholarship Ball, the university raised $500,000, and aims to double that amount in 2025.

Additionally, in February 2025, the university held its fifth annual Falcon Giving Day, during which the community raised funds for scholarships, equipment, and student resources. A major contributor was Sewell Family of Companies, which donated $50,000 to support UTPB’s athletics department.

Training the region’s workforce

In addition to offering financial aid, UTPB focuses on preparing graduates for high-demand careers in the region. The university offers programs in engineering, business, geology, and other fields aligned with the needs of the West Texas economy. For example, its Bachelor’s in Land Management trains professionals for careers in the oil and gas sector.

Students also benefit from internship opportunities and involvement in research projects, which support both their professional development and stronger ties with local industries.

About the university and its regional impact

The University of Texas Permian Basin (UTPB) is a public institution that is part of the University of Texas System, located in Odessa, at the heart of West Texas’s oil and gas industry.

Founded in 1973, UTPB offers over 50 undergraduate and graduate programs in engineering, healthcare, education, and business. The university prioritizes workforce development for key regional sectors like energy, healthcare, and education.

UTPB plays a vital role in the region’s growth: 70% of its graduates remain in the Permian Basin, and 24% of all jobs in the region are connected to the university. Since its founding, UTPB has graduated over 30,000 students, significantly contributing to the economy and the community of West Texas.