(TEXAS) — On January 27, 2026, Governor Greg Abbott ordered Texas state agencies and public universities to immediately halt new H-1B visa petitions, a timing that collides with the FY 2027 cap season ramp-up for many employers.
The directive is state-level. It does not change who can qualify for H-1B under federal law. It does change who in Texas can sponsor, if the sponsor is a covered public employer.
For affected candidates, the practical impact is immediate. Many spring hiring start dates now face delays, even when the job is H-1B-eligible.
Key Date: January 27, 2026 — Texas directive issued, pausing new H-1B filings by covered public employers.
FY 2027 H-1B cap season timeline (employment start: Oct. 1, 2026)
Texas’s action is separate from the federal cap process. Private employers in Texas may still register and file. Cap-exempt public employers in Texas may not file “new” petitions during the freeze, unless approved.
| FY 2027 milestone | Projected timing |
|---|---|
| Registration period | Early-to-mid March 2026 |
| Selection notifications | Late March / early April 2026 |
| Petition filing window | April 1 to June 30, 2026 |
| Earliest cap start date | October 1, 2026 |
USCIS continues to use a beneficiary-centric framework. That means one registration per person, even if multiple employers try to register the same beneficiary.
This rule reduces duplicate entries. It also raises the stakes on job fit and documentation.
1) Overview of the Texas H-1B petition halt
Governor Abbott’s directive orders an immediate pause on new H-1B sponsorship filings by Texas state agencies and public universities. The stated purpose is to limit taxpayer-funded hiring of foreign workers.
The directive also ties the pause to concerns about H-1B “abuse.” This is not a federal H-1B eligibility change. USCIS still decides whether a role is a specialty occupation and whether the employer can pay the required wage.
The Texas order is a sponsor restriction. It can block a filing even when a petition would be approvable under federal rules.
The freeze begins immediately and is framed to run through the end of the current legislative session. The operational point is simple. Covered public employers should assume “new” H-1B filings are paused unless an exception is granted.
2) Scope, duration, and exceptions of the freeze
Covered entities are Texas state agencies and public universities. “Sponsorship” in this context means the employer signs and files the Form I-129 H-1B petition and makes the required attestations.
Those attestations include wage, worksite, and notice obligations under the Labor Condition Application process. The directive targets new H-1B petitions. In practice, “new” often includes first-time H-1B filings for a worker.
It can also include a change from another status into H-1B. It may include cap-exempt “new employment” at a public university.
The hardest category is “gray-area” filings. These include extensions, amendments, and concurrent employment. The directive’s text focuses on “new” petitions. How it is implemented may vary by institution and counsel guidance.
Departments should not assume extensions are allowed without internal confirmation.
Exceptions require written permission from the Texas Workforce Commission (TWC). Employers should keep a tight paper trail. Retain the written approval, the business justification, and the role’s recruitment file.
Keep these records with the Public Access File materials when applicable.
Employer Alert: If your agency or university proceeds under an exception, keep written TWC permission in the immigration file and retention system.
3) Reporting requirements and data to be disclosed
Texas is also requiring covered entities to produce a detailed report. The report must include prior-year H-1B filings, current sponsored workers, and countries of origin.
It also requires documentation of efforts to recruit Texans first. This matters because the reporting effort is operationally heavy. HR teams will need to coordinate with departments, outside counsel, and payroll.
Universities may have decentralized hiring records across labs, colleges, and affiliated units. Employees may be asked to confirm biographical details, immigration history, and funding sources.
Departments should plan for data validation. Inconsistencies can create audit risk later, including wage or worksite issues.
Deadline: The state report is due March 27, 2026 under the directive.
4) Fiscal context and institutional costs
H-1B costs are real for public institutions. Typical cost drivers include legal fees, internal HR time, advertising and recruitment documentation, and government filing fees.
Federal filing fees alone can be material. Standard fees commonly include the $215 registration, $780 Form I-129 fee, $500 fraud fee, and $750 to $1,500 ACWIA fee, depending on headcount.
Premium processing is $2,805 when used.
Public institutions also face added scrutiny. Budget hearings, public records obligations, and legislative oversight can make immigration spending a policy issue. That scrutiny can trigger freezes, even when departments have urgent staffing needs in teaching and research.
Reports have cited multi-year spend figures at individual institutions. Those numbers often bundle attorney fees, filings, and internal program costs. Treat them as directional unless you can verify your institution’s accounting.
5) Federal policy alignment and actions
Texas’s directive arrives during a period of stricter federal posture. Employers should expect more requests for documentation. That includes specialty occupation evidence, wage leveling explanations, and worksite compliance.
Wage remains central. Employers must pay the higher of the prevailing wage or actual wage. Wage levels range from Level I (entry) to Level IV (fully competent). Level I roles have faced increased USCIS questions.
This is common in research assistant and junior analyst roles. The directive also references federal enforcement efforts. It cites an enforcement initiative beginning in September 2025, and it cites a $100,000 fee tied to certain new H-1B petitions.
Employers should budget with counsel. A six-figure fee changes whether public roles can be sponsored at all.
It also describes a wage-weighted selection rule with an effective date of February 27, 2026. Employers should watch the USCIS cap-season page for how selection will run in March 2026.
6) Official responses from USCIS/DHS
DHS has not issued a Texas-specific federal announcement. USCIS messaging has focused on program integrity and enforcement. That distinction matters.
A state directive can be stricter than federal law. It can limit sponsor participation. It does not rewrite H-1B statutes or USCIS regulations.
Readers should treat broad enforcement statements as posture, unless tied to a published rule or policy memo. For federal updates, the safest approach is to check formal postings and dated releases.
Avoid relying on summaries circulating internally without the underlying document.
7) Potential impact and implications
The impact is most direct for cap-exempt public employers. Public universities often hire professors, postdocs, researchers, and clinical faculty on H-1B. Agencies may sponsor specialized engineers, cybersecurity staff, and medical professionals.
A “new petition” halt disrupts start dates. It can also push candidates toward private employers, even when the public role is a better match. Timing is especially tight when a candidate needs work authorization by summer or fall.
Current workers may feel uncertainty. Many will ask whether extensions, amendments, or transfers are affected. A transfer to a private cap-subject employer still requires a petition. A move to another cap-exempt employer may still be “new employment.”
Employees should request clarity in writing from HR. Ask whether the institution is pausing only first-time filings, or also extensions and amendments. Align that answer with counsel guidance.
8) Official sources and where to verify
Employers and employees should verify three things. First, the Texas directive text and any implementation memos. Second, USCIS cap-season instructions for March 2026 registration. Third, any federal fee and selection-rule updates.
Use primary sources and save copies. For compliance decisions, keep PDFs or screenshots of dated announcements in your case file.
Key official pages include the USCIS newsroom. The USCIS H-1B cap-season page is also the best place to confirm registration dates and selection mechanics.
What happens next in the FY 2027 lottery, and alternatives if not selected
If selected: The employer files the full H-1B petition in the April-to-June window. Expect specialty occupation scrutiny. Provide a tight job description, degree fit, and wage support.
If not selected: Consider options tied to your facts. Common alternatives include:
- Cap-exempt H-1B at qualifying universities, nonprofits, and research organizations
- O-1 for individuals with strong evidence of extraordinary ability
- L-1 for intracompany transfers, when eligible
- TN for Canadian and Mexican professionals in listed occupations
- STEM OPT extensions, when available and compliant
Projected FY 2028 timeline: Employers should expect registration again in March 2027, with an October 1, 2027 start date. Budget and headcount planning should start by January 2027.
Employers should confirm now whether they are covered by the Texas freeze and stop drafting “new” filings without written TWC permission. Employees should ask HR whether your case is a “new” filing and request the written policy.
Both should calendar March 2026 registration planning and monitor USCIS cap updates.
Official Resources:
- H-1B Program: USCIS H-1B Specialty Occupations
- Cap Season: USCIS H-1B Cap Season
- Prevailing Wages: FLC Data Center
