Texas Freezes New H-1B Visas at State Agencies, Universities

The state of Texas has ordered an immediate freeze on new H-1B visa petitions across state agencies and public universities, marking a significant policy shift aimed at prioritising domestic employment. Texas Governor Greg Abbott announced the decision, arguing that the federal visa programme has increasingly been misused at the expense of American workers.

Under the directive, all Texas state agencies and publicly funded institutions of higher education are barred from initiating or filing fresh H-1B visa applications without explicit written approval from the Texas Workforce Commission. The freeze will remain in effect until May 31, 2027, coinciding with the conclusion of the 90th Regular Session of the Texas Legislature.

In a formal communication to agency heads, Abbott cited concerns over alleged abuse of the H-1B programme, stating that state government must lead by example when it comes to employment practices funded by taxpayers. He stressed that Texas jobs should first be made available to Texans and that foreign labour should only be considered after genuine recruitment efforts within the state have been exhausted.

The H-1B visa programme allows US employers to hire foreign professionals for specialised roles typically requiring a minimum of a bachelor’s degree. In Texas, the programme has played a crucial role in staffing public universities, academic medical centres, and certain school districts, particularly in fields such as research, healthcare, and education where talent shortages exist. The federal programme issues 65,000 visas annually, with an additional 20,000 reserved for applicants holding advanced degrees.

Abbott argued that the original intent of the programme was to supplement the US workforce rather than replace it. Referring to federal immigration policy under President Donald Trump, the governor said evidence suggests some employers have failed to demonstrate good-faith efforts to recruit qualified American workers before turning to foreign labour. In certain cases, he claimed, American employees were replaced with visa holders, often at lower wages.

As part of the directive, all affected agencies and public universities have been instructed to submit a comprehensive report to the Texas Workforce Commission by March 27, 2026. The report must detail the number of H-1B petitions filed in 2025, the total number of currently sponsored visa holders, their countries of origin, job classifications, visa expiration timelines, and documentation proving recruitment efforts within Texas.

The Texas Workforce Commission has also been tasked with issuing any additional guidance necessary to ensure compliance with the order.

The freeze comes amid a broader tightening of immigration and employment policies at the federal level. As part of his second-term agenda, President Trump introduced a one-time fee of $100,000 for new H-1B applicants, a move that sparked legal challenges from more than 20 US states. Texas, however, chose not to join the lawsuit.

The impact of these measures is particularly significant for Indian professionals, who have historically dominated the H-1B programme. In fiscal year 2024, Indian nationals accounted for over 70 percent of all approved H-1B petitions. However, recent data from the National Foundation for American Policy and US immigration authorities indicate a sharp decline in approvals for traditional IT services firms, with numbers falling to a decade-low in 2025.

The Texas decision underscores the growing political and economic debate in the US over balancing skilled immigration with domestic workforce protection.