In a significant announcement made on October 28, the Agriculture Commissioner of Texas, Sid Miller, revealed a new policy that will impact companies employing workers on H-1B visas. The policy dictates that businesses which hire H-1B visa holders will be ineligible to apply for certain state grants managed by the Texas Department of Agriculture (TDA). The rationale behind this decision is to prioritize taxpayer-funded grants for the support of local Texas workers.
In the statement issued by the TDA, Miller emphasized that companies seeking taxpayer funding should demonstrate a commitment to local communities and prioritize employment opportunities for Texas workers. He further urged Governor Greg Abbott, along with other state officials, to implement similar measures throughout the state.
While this policy does not outright ban businesses from employing foreign workers holding H-1B visas, it does impose restrictions on these companies’ ability to secure specific state-funded grants. At this time, the official announcement has not provided a complete list of the affected grant programs, the entities involved, or the total amount of funding impacted.
According to the TDA’s announcement, the restrictions apply to grant programs directly managed by the department that meet new eligibility criteria, although there are some exceptions. If the TDA is merely overseeing grant programs administered by independent boards, committees, or other organizations that establish their eligibility criteria, those programs will not fall under the new limitations. Additionally, Texas businesses applying for federal grants or participating in state-funded loan programs will not be affected by this measure.
The TDA stated that the TDA board is responsible for setting the selection criteria for grants and approving applications for the Texas Agricultural Grant, suggesting that projects under the Texas Agricultural Finance Authority (TAFA) may be exempt from these restrictions.
In summary, this announcement does not completely sever public funding for companies that hire H-1B visa employees; rather, it adjusts the eligibility criteria for certain state government grant programs overseen by the TDA.
As of the time of this announcement, the TDA has yet to disclose comprehensive implementation details, including a specific effective date for the restrictions, the means by which the employment of H-1B workers will be verified, and how the new regulations will affect existing grant applications or approved funding. Consequently, it remains unclear how many businesses will be impacted and the scale of funding involved.
Miller’s announcement is part of a broader series of measures recently taken in Texas regarding H-1B visas. The H-1B is a temporary work visa regulated by the federal government, primarily designed for U.S. employers to hire foreign professionals in specialized fields, with common areas including technology, engineering, and certain education and research roles. Employers typically must submit applications to the federal government and comply with relevant regulations.
Since H-1B visas are issued by the federal government, state authorities do not have jurisdiction over this matter. Therefore, Texas regulations such as this can only pertain to “state-provided funds” and “state employees.”
Earlier this year, on January 27, Governor Abbott issued an order requiring state agencies managed by officials appointed by the governor, as well as public higher education institutions, to refrain from submitting new H-1B visa applications without written permission from the Texas Workforce Commission (TWC). This restriction is set to last until May 31, 2027.
On August 18, Abbott proposed legislative action to prohibit public elementary and secondary schools in Texas from employing holders of H-1B visas. This proposal is subject to the state legislative process and differs from the directive issued in January that specifically targeted state agencies and public higher education institutions.
Moreover, an analysis conducted by the Dallas Morning News, based on public data from the U.S. Department of Labor, revealed that 33 private companies submitted 46 certified labor condition applications in total, requesting 193 H-1B positions. These applications reportedly listed job locations that involve the Texas Department of Transportation (TxDOT) in their names or addresses.
However, it’s essential to recognize that these records come with significant limitations. Labor condition applications are among the documents submitted by employers to hire foreign professionals, but they do not equate to federal approval of the visas, nor do they confirm that the applicants have entered the country or started working.
Additionally, these applications were submitted by private companies, not the Texas Department of Transportation itself. Thus, relying solely on these documents does not verify that 193 foreign individuals are working within the TxDOT, nor does it conclude whether the department has violated Abbott’s directive.
Overall, Texas is gradually tightening regulations related to H-1B visas concerning certain public institutions and grant programs. Nevertheless, the new measures from the TDA currently target specific eligibility for state grants, and should not be conflated with a comprehensive ban on companies hiring H-1B employees.