In a significant policy shift, Texas Governor Greg Abbott has issued an executive directive ordering an immediate freeze on all new H-1B visa hiring across state agencies and public universities. This announcement creates an interesting contrast as it comes at a time when tech mogul Elon Musk has been actively urging businesses and professionals to relocate to Austin, Texas.
Executive Order Targets "Abuse" of Visa Program
Governor Abbott's directive, which will remain in effect until May 31, 2027, cites concerns about "abuse" of the federal H-1B program. The order mandates that all state bodies halt new petitions for the high-skilled worker visa, with Abbott emphasizing that "Texans come first" in employment opportunities.
"I'm directing state agencies and universities to freeze new H-1B visa petitions," Abbott stated in a post on X. "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."
Musk's Austin Advocacy vs. Abbott's Policy Shift
The governor's new policy suggests a narrowing of opportunities for foreign workers even as Elon Musk has championed Texas as a destination for tech companies and professionals. Musk, who has already moved Tesla's headquarters to Austin, has been a vocal supporter of the city's growth and development.
In a November post on X, Musk encouraged businesses to "Move to Austin! It gets better every year. So many cool, world-class people are moving to Austin from SF, LA, NY, London and many other parts of the world! Austin++"
This policy shift may present challenges for private firms like Musk's Tesla and Oracle, which rank among Texas's largest private employers of H-1B visa holders.
Texas's Significant H-1B Workforce
Texas currently holds the second-highest number of H-1B workers in the United States, trailing only California. As of 2025, over 40,000 visa holders were approved to work for more than 6,100 employers across the state, highlighting the program's substantial impact on Texas's economy and workforce.
Comprehensive Audit of Foreign Workforce
In addition to the hiring freeze, Governor Abbott has demanded a thorough audit of the current foreign workforce employed by state entities. By March 27, all agencies and public schools (K-12) are required to submit detailed reports that must include:
- The number of new and renewal H-1B petitions filed in 2025
- Specific job roles filled by currently sponsored visa holders
- Countries of origin for all foreign workers under sponsorship
Abbott explained the rationale behind these measures, stating, "We want to make sure our communities are not having people come in and take jobs that Texans could easily fill."
The governor's executive order represents a significant development in immigration and employment policy within one of America's largest and most economically dynamic states, creating potential implications for both public institutions and private technology companies operating in Texas.
