An IMglobalWealth.com News Report
Texas has become the latest US state to take a hard line on skilled foreign workers, after Governor Greg Abbott ordered all state agencies and public universities to suspend new H-1B visa petitions while an investigation into the programme is carried out.
“prolonged freezes could push innovation and investment offshore”
In a directive issued on 27 January, Abbott said the freeze was necessary “in light of recent reports of abuse” in the federal H-1B system and in response to Washington’s own review of the programme.
The moratorium will remain in force until 31 May 2027, unless written exemptions are granted by the Texas Workforce Commission.Under the order, agencies have until 27 March 2026 to submit a detailed report outlining the number of new and renewed H-1B petitions filed last year, the total visa holders sponsored, their countries of origin, and job classifications.
The move echoes similar political pressure in other Republican-led states: Florida’s Board of Governors has already proposed pausing H-1B hiring at public universities until January 2027.
The H-1B visa programme allows US employers to hire highly skilled foreign professionals in “specialty occupations”, mainly in science, technology, engineering and mathematics.
According to US Citizenship and Immigration Services, Congress caps the scheme at 65,000 visas annually, with an additional 20,000 reserved for applicants holding US master’s degrees or higher.
Successful applicants are typically granted work authorisation for three years, renewable for up to six.
The Texas decision comes amid a broader federal crackdown. During his second term, President Donald Trump imposed a new one-time fee of $100,000 on new H-1B applications, a measure challenged in court by more than 20 states, though Texas did not join the lawsuit.
The White House has repeatedly argued that some employers misuse the system to replace American workers with lower-paid foreign labour, a claim that has long divided business groups and labour unions.
Industry bodies such as the US Chamber of Commerce and Compete America have countered that the programme fills critical skills gaps, particularly in technology, healthcare, and research.
Data from the National Foundation for American Policy shows that major US tech firms rely heavily on H-1B professionals, warning that prolonged freezes could push innovation and investment offshore.
For Texas, home to a fast-growing technology and research sector, the policy marks a significant shift, one that could reshape how state institutions access global talent at a time when competition for skilled workers is intensifying worldwide.
