Texas Freezes Filing of New H-1B Petitions by State Agencies and Public Institutions of Higher Education

Quick Hits

• Governor Abbott has directed Texas public institutions of higher education and state agencies to freeze the initiation or filing of any “new” H-1B petitions for foreign employees until May 31, 2027.
• Governor Abbott has also directed the impacted state agencies and university institutions to provide H-1B sponsorship data to the Texas Workforce Commission.
• This directive appears to impact “new” H-1B visas sought by state government agencies and public universities in Texas. Renewals of existing H-1B status appear not to be impacted, and private-sector employers are not directly impacted.

Discussion

Pursuant to a directive from Governor Abbott, Texas state agencies and public institutions of higher education must refrain from initiating or filing “any new petition to sponsor a nonimmigrant worker under the federal H-1B visa program until the end of the Texas Legislature’s 90th Regular Session on May 31, 2027.”

Governor Abbott’s directive prohibits these agencies and institutions from filing new H-1B petitions during this period of time without the written permission of the Texas Workforce Commission (TWC). In addition, the governor has required the agencies and institutions to provide reports to the TWC with data identifying the number of new and renewal H-1B petitions filed in 2025, the number of currently sponsored H-1B visa holders, the countries of origin of H-1B visa holders, job classifications and descriptions, expiration dates, and documentation demonstrating efforts to provide Texas candidates with opportunities to apply for such positions prior to submitting H-1B petitions. The U.S. Department of Labor (DOL) already publishes much of this information via its Office of Foreign Labor Certification disclosure data, but “country of origin” is not a data point collected by the DOL.

The directive instructs agencies and institutions to submit this data to the TWC by March 27, 2026, and requires the TWC to issue guidance to effectuate the governor’s directives. The letter further states that this data will be used by the Texas Legislature “to establish statutory guardrails for future employment practices regarding federal visa holders in state government” and that the moratorium on filing new H-1B petitions will “provide time” for the U.S. Congress and the Trump administration to implement modifications to federal law and immigration policy.

The directive appears to distinguish between “new” and “renewal” petitions. While the letter does not specifically define the categories, a “new” petition is typically filed on behalf of a worker seeking his or her first H-1B, while a “renewal” petition is commonly filed to extend status for an existing H-1B visa holder. A “renewal” petition could also include an amendment of existing H-1B terms for a current employee or a change of employer for a current H-1B visa holder.

Texas has more than 100 public institutions of higher education and university systems, including medical schools and teaching hospitals, which employ physicians, nurses, pharmacists, and other healthcare workers, as well as more than 150 state agencies and departments, including environmental, natural resources, and family/health agencies. The Texas Department of State Health Services predicts that the state will see a shortage of 10,330 doctors by 2032, and that Texas medical schools cannot make up that shortage.

Many of the public institutions and organizations subject to the governor’s directive are considered “cap-exempt,” meaning they are not subject to the annual H-1B quota and lottery to which private-sector employers are subject. A cap-exempt employer may file a “new” H-1B petition at any time of the year and is not required to go through the annual lottery process. Cap-subject private employers can also partner with cap-exempt entities to benefit from this exemption. For example, private hospitals or organizations may sponsor physicians and other medical staff, utilizing their affiliations with cap-exempt institutions (e.g., university-affiliated hospitals or state health agencies). This may be based on direct sponsorship by the private employer or concurrent sponsorship by both the private employer and the cap-exempt entity. Both scenarios for Texas employers could be impacted by the governor’s directive with regard to petitions for “new” H-1B visa holders.

Key Takeaways

Texas state agencies and universities, including medical schools and teaching hospitals, now face additional restrictions on hiring H-1B workers and will need to seek written permission from the TWC to file “new” H-1B petitions. While the private sector is not directly targeted by the governor’s directive, private employers that partner with Texas state agencies and universities could be impacted. The directive appears to address only “new” H-1B visas sought by state governmental agencies and public universities in Texas; renewals of existing H-1B status appear not to be impacted.

Ogletree Deakins’ Immigration Practice Group will continue to monitor developments and will provide updates on the Healthcare, Higher Education, Immigration, and Texas blogs as additional information becomes available.

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