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Texas agriculture department bars businesses employing H-1B workers from receiving certain state grants
The Texas Department of Agriculture will bar businesses employing H-1B visa holders from eligible department-administered grants.
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The Texas Department of Agriculture will stop awarding eligible department-administered grants to businesses that employ H-1B visa holders, Texas Agriculture Commissioner Sid Miller announced, urging Governor Greg Abbott and other statewide elected officials to introduce similar restrictions across their agencies.
The policy aims to ensure that taxpayer-funded grants support businesses creating employment opportunities for Texas residents rather than companies relying on temporary foreign workers, the department said in an announcement.
Miller said businesses receiving public funding should demonstrate a commitment to employing local workers and investing in Texas communities.
“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.
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Texas targets businesses employing H-1B workers
Under the new requirements, businesses seeking eligible Texas Department of Agriculture (TDA) grant funding will face restrictions tied to employing H-1B visa holders.
Miller said taxpayer-funded grants should strengthen local communities and reward companies that invest in the state's workforce.
He also challenged Abbott and other statewide elected officials to review their agencies' grant programs, economic development initiatives and funding safeguards.
“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 commissioner called on state leaders to examine existing economic incentive programs, improve transparency surrounding grant recipients and ensure public funding creates opportunities for Texas workers.
He argued that the state had invested heavily in education, job training and workforce development and should ensure businesses receiving public assistance also prioritize local employment.
H-1B grant restrictions come with exceptions
The department clarified that the eligibility changes will not cover every program it administers.
The restrictions do not apply to TDA-administered grant programs operated on behalf of independent boards, commissions or entities that establish their own eligibility criteria.
They also do not prevent public or private Texas entities from receiving federal grant funding or participating in state-funded loan programs administered by the department.
The announcement did not specify how many businesses could be affected by the new requirements or estimate the amount of grant funding involved.
H-1B visa program faces scrutiny
The move comes amid wider scrutiny of the H-1B visa program, which allows US employers to hire foreign workers in specialized occupations. The program is widely used by technology companies and other employers to recruit skilled professionals, including workers from India.
Miller said public money should support businesses that create opportunities for people already living and working in Texas.
“We’re not going to turn a blind eye to how taxpayer money is used,” he said, adding that every dollar should serve the public interest.
