Texas Freezes New H-1B Visas at State Universities

Texas Governor Greg Abbott has ordered an immediate freeze on new H-1B visa petitions across all Texas state agencies and public universities, citing alleged misuse of the federal programme and the need to prioritise American workers. The freeze will remain in effect until May 31, 2027.

Announcing the decision, Abbott said recent reports suggest the H-1B visa programme has been exploited by employers who fail to make genuine efforts to recruit qualified US workers before turning to foreign labour.

“In light of reported abuse of the federal H-1B programme, and as the federal government reviews whether American jobs are truly going to American workers, I am directing all state agencies to immediately halt new H-1B visa petitions,” Abbott said in a letter to agency heads.

The move follows a state-led inquiry into the use of H-1B visas by Texas public schools, universities and related institutions.

The H-1B visa programme allows US employers to hire foreign professionals for specialised roles that typically require at least a bachelor’s degree. In Texas, the programme has long been a crucial recruitment tool for public universities, academic medical centres and some school districts, helping fill positions such as professors, researchers, doctors and teachers when local talent is scarce. Each year, the programme grants 65,000 visas, along with an additional 20,000 for applicants holding advanced degrees, for periods of three to six years.

Abbott argued that while the programme was designed to supplement the US workforce, it has increasingly been used to replace American workers. Citing former President Donald Trump’s stance on non-immigrant labour, Abbott said some employers have dismissed US employees and replaced them with H-1B workers, often at lower wages.

“The Texas economy must work for the benefit of Texas workers and Texas employers,” Abbott said, stressing that taxpayer-funded institutions should lead by example in fair hiring practices.

Under the directive, no state agency led by a gubernatorially appointed official, nor any public institution of higher education, may file new H-1B petitions without written approval from the Texas Workforce Commission until the conclusion of the Texas Legislature’s 90th Regular Session in 2027.

Abbott has also instructed all affected agencies and universities to submit a detailed report to the Texas Workforce Commission by March 27, 2026. The report must include data on H-1B petitions filed in 2025, current visa holders, their countries of origin, job roles, visa expiration dates, and evidence of efforts made to recruit qualified Texas candidates before hiring foreign workers.

The Texas Workforce Commission has been directed to issue guidance to implement the order.

The decision comes amid tighter federal scrutiny of the H-1B programme. Last year, President Donald Trump introduced a one-time fee of $100,000 for new H-1B applicants as part of his second-term immigration push, a move challenged in court by more than 20 US states—though Texas did not join the lawsuit.

According to US Citizenship and Immigration Services data, Indian nationals accounted for 71 per cent of H-1B visa approvals in FY 2024. However, FY 2025 figures show a significant decline, with approvals for traditional Indian IT service firms falling to a 10-year low, down 37 per cent from the previous year.