Texas Agriculture Commissioner Sid Miller announced Wednesday that companies employing H-1B visa holders will be barred from receiving taxpayer-funded grants administered by the Texas Department of Agriculture.
The policy applies only to grant eligibility, not employment itself. Businesses remain free under federal law to hire H-1B workers. But if they want money from the Texas Department of Agriculture, Miller’s new rule says no.
Miller explained the reasoning in the department’s official announcement:
“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.”
“If a company wants taxpayer support, it should demonstrate a commitment to the people paying the bill. Texas workers should come first. Period.”
Miller also took direct aim at Gov. Greg Abbott, pressing him to move from rhetoric to policy:
“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. Texans deserve more than tough talk.”
Miller is calling on Abbott and other statewide officials to review their own grant programs and cut off taxpayer dollars to businesses that employ H-1B workers.
Abbott’s record so far
Abbott has taken some action on H-1B visas, but nothing as sweeping as what Miller is now demanding. In January, Abbott froze new H-1B petitions by state agencies and public universities, a restriction running through May 31, 2027. Institutions can still seek written permission from the Texas Workforce Commission to bypass it. Abbott also ordered state agencies to report data on existing H-1B employees and recruitment practices.
None of that amounts to a statewide ban on H-1B hiring, which many Texans have been demanding.
The limits of the approach
H-1B visas are not the only legal pathway for foreign workers to enter the U.S. labor market. Companies can also rely on L-1 intracompany transfers and other temporary-worker visa categories, meaning a policy that targets H-1B employment alone will not close off the broader foreign-labor pipeline.
Separately, legal immigration through employment-based visas has already been falling sharply under the Trump administration. A Cato Institute analysis found that H-1B visas, combined with H-4 visas for qualifying family members, dropped 78% between February 2024 and February 2026.
Miller’s rule won’t rewrite the Texas labor market on its own. But it puts a concrete marker down: state money should go toward hiring Texans first. Whether Abbott and other officials extend that standard across the rest of state government remains to be seen.
