Texas Governor Greg Abbott has frozen new H-1B visa petitions at state agencies and universities until 2027. Here’s how it impacts Indian professionals.
Photo : AP
Texas has moved to sharply restrict skilled foreign hiring at taxpayer-funded institutions, with Governor Greg Abbott ordering an immediate freeze on new H-1B visa petitions across state agencies and public universities. The directive, issued on Tuesday, mandates that no new H-1B applications be filed unless written approval is granted by the Texas Workforce Commission, according to the governor’s office.
Abbott said the freeze will remain in effect until May 2027 and is intended to ensure that public sector hiring prioritises American workers. “In light of recent reports of abuse in the federal H-1B visa programme, and amid the federal government’s ongoing review of that programme, I am directing all state agencies to immediately freeze new H-1B visa petitions,” Abbott said in the order released by his office.
Texans come first.
I’m directing state agencies and universities to freeze new H-1B visa petitions. Texas taxpayers invest billions to train our workforce. Those jobs should go to Texans.
Texas is the strongest economic engine in America. We’re going to keep it that way.…
— Greg Abbott (@GregAbbott_TX) January 27, 2026
Why Indian Nationals Are Most Affected
Indian professionals stand to bear the brunt of the Texas freeze. According to USCIS data, Indian nationals accounted for approximately 71% of all approved H-1B petitions in recent years, far ahead of any other country, with Chinese applicants ranking a distant second.
The concentration is particularly high in sectors such as information technology, engineering, healthcare, and academic research — all areas where Texas public universities and state-linked medical institutions are major employers. Officials at several Texas universities, speaking on background, said departments had already begun reviewing hiring plans for 2026 and 2027 in light of the order.
Major Indian IT firms are among the largest H-1B users nationwide. Data released by USCIS shows Amazon topped approvals in 2025 with 10,044 H-1B workers, followed by Tata Consultancy Services with 5,505 approvals. Other prominent beneficiaries include Microsoft, Meta, Apple, Google, Infosys and Wipro.
Although the Texas order applies only to public institutions, experts say it sends a broader signal that state governments may increasingly seek to influence participation in federal visa programmes.
Impact on Universities, Research and the Texas Economy
Texas public universities employ hundreds of foreign-born faculty and researchers, many of them Indian nationals, across engineering, healthcare, artificial intelligence, and advanced manufacturing. Academic administrators warn that the hiring freeze could slow research output and reduce Texas’ competitiveness in attracting global talent.
According to data from Open Doors, a US government-backed education exchange database, nearly 270,000 Indian students studied in US institutions during the 2022–23 academic year, representing about 25% of the international student population. The same dataset estimates that Indian students contribute roughly USD 10 billion annually to the US economy and support about 93,000 jobs through tuition and living expenses.
Several education policy analysts said that restricting post-study employment pathways, including H-1B sponsorship at public universities, could discourage Indian students from choosing Texas institutions over rival destinations in Canada, Australia, or the UK.
Why Texas Is Targeting H-1B Hiring Now
The Texas directive comes as the administration of Donald Trump continues to overhaul skilled immigration pathways, including stricter entry conditions and higher financial thresholds for non-immigrant workers. Abbott’s order aligns Texas with that broader federal posture, even though H-1B visas are administered by US Citizenship and Immigration Services at the national level.
Under the new Texas rules, state institutions must also submit detailed reports on existing H-1B employees, including job roles, countries of origin, and visa expiry timelines, the governor’s directive states. Officials familiar with the order said the reporting requirement is intended to give the state clearer visibility into reliance on foreign labour within publicly funded entities.
While the order does not cancel existing H-1B visas, analysts note that it effectively blocks future recruitment of foreign faculty, researchers, doctors, and engineers at Texas public institutions for nearly two years.
How This Fits Into the Larger US Immigration Shift
Abbott’s move follows earlier federal actions under Trump, including a September proclamation restricting entry for certain non-immigrant workers unless new H-1B petitions are accompanied by a USD 100,000 fee. The higher fee applies to all new H-1B filings submitted after September 21, including those under the FY2026 lottery.
The Trump administration has also floated alternative immigration pathways such as the “Gold Card” visa, introduced in September 2025, which offers expedited residency options to individuals or corporations willing to invest between USD 1 million and USD 2 million in the US Treasury.
Supporters of the Texas freeze argue it protects local employment and curbs misuse of skilled visas. Critics counter that it risks undermining innovation, public research, and healthcare staffing at a time when skilled labour shortages persist.
