Texas Governor Greg Abbott has announced an immediate freeze on all new H-1B visa petitions at state agencies public universities and their affiliated institutions because of his program abuse allegations and need to protect American jobs. The freeze will remain in effect until May 31 2027.

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Reason for the Freeze

The H-1B program which Abbott claims should work as a supplement to the US workforce has become a tool for abuse according to him. Investigations revealed that companies used H-1B visa holders to replace skilled American workers who received higher pay than their foreign counterparts.

“Evidence shows that dishonest individuals have taken advantage of this program by not making genuine attempts to find American workers before they started their search for international staff,” Abbott stated.

The governor emphasized that Texas jobs should be filled by Texans first especially for positions funded by taxpayers.rst, especially for positions funded by taxpayers.

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Scope of the Directive

• Affected institutions: All state agencies led by gubernatorial appointees and public colleges/universities.
• Action required: Agencies cannot file new H-1B petitions without written approval from the Texas Workforce Commission.
• Reporting requirement: By March 27, 2026, agencies must report:
  • Number of H-1B petitions filed in 2025
  • Current visa holders and their countries of origin
  • Job classifications and visa expiry dates
  • Documentation showing efforts to recruit qualified Texas candidates

The Texas Workforce Commission will issue guidelines to enforce the order.

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Background on H-1B Program in Texas

The H-1B visa permits American companies to employ international workers who possess specialized skills that require at least a bachelor’s degree. Texas universities and academic medical centers together with specific school districts use these visas to hire professors and doctors and researchers and teachers when they cannot find suitable local candidates.

• Annual quota: 65,000 visas, plus 20,000 for advanced-degree holders
• Typical duration: 3–6 years

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Impact and Federal Context

President Donald Trump established a one-time payment requirement of $100000 for new H-1B applicants during his second presidential term. Indian nationals made up 71 percent of all H-1B approvals last year which included more than 283000 petitions. Traditional Indian IT companies experienced a 37% decrease in approval rates during FY 2025, which represented their lowest point in the past decade.

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Governor’s Message

Abbott emphasized that Texas requires an economic system which benefits both local workers and business owners while he requested state agencies to give hiring preference to Texas residents and keep their recruitment process for foreign experts open to public scrutiny.