Gov. Greg Abbott revealed that US Foods, Inc. will expand its existing facility in Buda, Texas, creating 165 new jobs and over $120 million in capital investment.
In a Wednesday announcement, Abbott revealed that the food service distributor received a $1.07 million grant from the Texas Enterprise Fund in order to expand the location.
“Companies invest and expand in our great state because of our unmatched business-friendly climate, reasonable regulations, and highly skilled workforce,” stated Abbott. “I look forward to seeing continued success for US Foods as we work together to build a bigger, better Texas for all.”
US Foods Area President Taylor McIntyre expressed his appreciation to Abbott’s office for supporting the initiative. He further noted that Central Texas has been a “critical part” of the company’s distribution operation since it opened the facility in 2011.
Buda Mayor Lee Urbanovsky, Buda City Manager Micah Grau, as well as State Sens. Donna Campbell (R-New Braunfels), and Judith Zaffirini (D-Laredo) also issued statements supporting the facility’s expansion.
The TEF is a state-commissioned business incentive fund established in 2003 to assist “companies whose projects would contribute significant capital investment and new employment opportunities to the state’s economy,” according to an overview.
Companies interested in applying for a TEF grant must anticipate that their project will create at least 75 new jobs in urban areas and at least 25 new jobs in rural areas with above-average wages.
In addition, grant applicants require state and local community involvement, including unanimous support from the governor, lieutenant governor, and the speaker of the House of Representatives.
TEF grants have been utilized several times in recent years. Most notably, Wells Fargo’s new Irving campus, multiple projects by Toyota, and Samsung’s planned Taylor plant—which has had significant setbacks since receiving $27 million from the state.
Some lawmakers have slammed the TEF grant system as a form of corporate welfare. In 2015, then-State Rep. Drew Springer (now an outgoing Republican state senator from Muenster) sought reforms to the system. However, that measure died in committee.
Another program accused of being corporate welfare, Chapter 313, was initially slated to expire with bipartisan support before being replaced with the near-identical Jobs, Energy, Technology, and Innovation program in 2023.
