H-1B Hiring Companies Won’t Get Grants in US Texas

In a big blow to the H-1B workers, including a large number of Indians working in the USA, the Texas Agriculture Department has ruled that companies employing H-1B visa holders will not get certain government grants. The move is aimed at prioritising local workers and ensuring that taxpayers’ money supports businesses creating employment opportunities for Texans.

Texas Agriculture Commissioner Sid Miller announced the new policy on October 28. Under the new rules, companies hiring H-1B visa holders will no longer qualify for certain grants directly administered by the Texas Department of Agriculture.

Miller has also urged Governor Greg Abbott and other elected officials to introduce similar restrictions across their departments and grant programmes.

However, the restrictions are limited to eligible grants administered directly by the Texas Agriculture Department. They do not apply to programmes operated by independent boards and commissions that have their own eligibility rules. The policy also does not prevent businesses from receiving federal grants or participating in state-funded loan programmes administered by the department.

It can be noted that earlier Governor Greg Abbott issued a directive in January 2026 asking Texas state agencies and public universities to temporarily freeze new H-1B visa petitions, subject to certain exceptions.

With the latest move, Texas appears to be taking a stricter approach towards the use of H-1B workers in organisations benefiting from public funds. This is not all. The policy could also encourage other state departments to review their funding rules and prioritise local employment.