Texas has introduced new restrictions on businesses employing H-1B visa holders, barring them from receiving certain state-administered grants funded by taxpayers.
Texas Agriculture Commissioner Sid Miller announced that the Texas Department of Agriculture (TDA) will no longer award eligible grants to businesses that employ workers on H-1B visas. The move is aimed at directing public funds toward businesses that prioritize the state’s workforce.
Miller also wants the policy to extend beyond his department. He has challenged Gov. Greg Abbott and other statewide elected officials to introduce similar restrictions across their agencies, grant programs and economic development initiatives.
Sharing the announcement on X, Hany Girgis, co-founder of SkillStorm, described the move as Texas taking its H-1B fight to another level.
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“Companies can choose to hire H-1B workers. But Texas taxpayers shouldn’t have to subsidize that decision,” Girgis wrote, questioning whether other states should adopt similar restrictions.
In announcing the policy, Miller argued that taxpayer-funded grants should create opportunities for Texas residents rather than support businesses hiring temporary foreign workers.
“Texas taxpayers work hard for their money. They deserve to know that their tax dollars are being used to create opportunities for Texans—not to subsidize businesses that choose foreign labor while Texans are ready and willing to work,” Miller said.
He also pointed to Abbott’s previous statements about prioritizing Texans for taxpayer-funded employment, urging the governor to translate that position into action.
“Governor Abbott has publicly declared that taxpayer-funded employment should prioritize Texans. I agree—and now it’s time to turn that principle into action,” Miller said.
The new eligibility requirements will apply to businesses seeking eligible grants administered by the Texas Department of Agriculture. The department says the policy is intended to strengthen local communities, support the Texas workforce and encourage businesses to invest in residents.
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Miller also called on state leaders to review existing grant and economic incentive programs, improve transparency around grant recipients and ensure public funding benefits Texas workers.
He argued that the state has already invested in education, job training and workforce development, making it important to ensure that businesses receiving public assistance also contribute to employment opportunities for local residents.
However, the restrictions have specific limits. They do not cover TDA-administered grant programs operated on behalf of independent boards, commissions or other entities that establish their own eligibility requirements. The policy also does not prevent Texas-based public or private entities from receiving federal grants or participating in state-funded loan programs administered by the department.
The announcement adds a new dimension to the debate over H-1B visas, which allow U.S. employers to hire foreign professionals for specialty occupations. The program has remained a subject of debate over its role in filling skilled positions, employer hiring practices and competition with American workers especially ahead of elections.