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How Texas’ H1B Suspension Signals a Shift in State-Level Immigration Workplace Policy and What It Means for Employers, Universities and Foreign Talent
According to the report, Governor Greg Abbott has ordered an immediate freeze on all new H1B visa petitions by Texas state agencies and public universities, citing recent reports of program abuse and alignment with ongoing federal reviews intended to ensure that American jobs are protected for American workers . The directive, issued through a formal letter, halts all new filings and requires state entities to conduct a detailed audit of prior H1B activity.
The suspension remains in effect until May 31, 2027, with exceptions only through written approval from the Texas Workforce Commission. Agencies must submit by March 27, 2026, comprehensive reports documenting all new and renewal petitions filed in the preceding year, including job classifications, country of origin and the number of beneficiaries sponsored .
Expansion of State-Level Scrutiny of H1B Programs
The policy shift situates Texas alongside Florida, where the state’s Board of Governors is presently seeking a similar pause on H1B sponsorship at public universities until January 5, 2027 . This trend signals increasing willingness by states to intervene in the federal H1B ecosystem, particularly in sectors where they exercise direct administrative authority.
Although H1B visas remain a federal immigration classification designed for highly skilled workers in specialized occupations such as engineering, science and technology, state-level restrictions on sponsorship by public institutions may carry substantial effects on workforce planning, research staffing and academic competitiveness.
Federal Context: Heightened Fees and Enforcement Under the Trump Administration
The article notes that President Donald Trump enacted a sweeping $100000 one-time fee for new H1B applicants during his second term. This unprecedented increase materially shifts the cost structure for employers seeking to recruit global talent and reflects a broader federal orientation toward tightening employment-based immigration processes .
In combination with state-imposed freezes, the cumulative regulatory impact may significantly restrict access to H1B talent pipelines across public sector entities.
Implications for Texas State Agencies, Universities and Foreign Workers
1. Workforce Disruption for Public Institutions
The freeze directly affects Texas’ ability to onboard new specialized workers in critical STEM positions. Universities, in particular, rely heavily on H1B sponsorship to recruit faculty, postdoctoral researchers and specialized staff. Research continuity and academic competitiveness may be disrupted until at least mid-2027.
2. Compliance and Reporting Burdens
Agencies must now conduct retroactive audits of all H1B sponsorship activity. Accurate classification data, chain of sponsorship records and employment duties will be essential. Failure to meet the March 27 reporting deadline could expose institutions to state administrative penalties or federal compliance risks.
3. Challenges for Current and Prospective H1B Beneficiaries
Although the freeze applies to new petitions, not renewals, the mandated reporting covers both categories. Foreign workers may face heightened scrutiny, fewer opportunities within public-sector institutions and uncertainty regarding long-term career planning in Texas.
Opportunities for Proactive Adjustment
Despite the statewide freeze, the order expressly allows agencies to request exceptions through the Texas Workforce Commission. Structuring such requests with supporting evidence of critical need, shortage occupations and compliance safeguards will be essential for successful approval.
Institutions may also reassess talent pipelines by exploring alternative immigration classifications, including O1, TN, E3 or J1 pathways, each of which may remain viable depending on the individual’s credentials and job duties.
How Spar and Bernstein Can Assist
As immigration law grows increasingly complex at both federal and state levels, employers and foreign professionals benefit from strategic legal guidance. Our attorneys at Spar and Bernstein help organizations:
• Evaluate the applicability of the Texas H1B freeze to their workforce
• Prepare mandatory state reporting with accuracy and risk mitigation
• Develop exception requests to the Texas Workforce Commission
• Navigate alternative visa classifications where H1B sponsorship is temporarily constrained
• Ensure continued compliance with evolving federal and state immigration policies
For foreign nationals affected by these shifts, our team provides individualized strategies for maintaining work authorization, securing extensions and identifying alternative immigration pathways that keep career trajectories intact.
We remain committed to solution-oriented, forward-looking immigration planning designed to safeguard both institutional needs and individual futures.
