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Texas Freezes New H‑1B Petitions at State Institutions as AG Opens Fraud Probe

The pause runs through May 31, 2027, pairing a hiring halt with a document‑driven inquiry into alleged “ghost offices” at three North Texas firms.

Overview

  • Gov. Greg Abbott directed state agencies and public universities to stop filing new H‑1B petitions unless granted written approval, and ordered detailed H‑1B reporting to the Texas Workforce Commission by March 27.
  • Attorney General Ken Paxton issued Civil Investigative Demands to three North Texas companies, seeking employee lists, financial records, and communications tied to suspected sham entities; no charges have been filed and the firms were not named.
  • The freeze covers taxpayer‑funded institutions and does not automatically affect private employers or current H‑1B holders in the state.
  • Hospitals and universities warned the halt could strain staffing and research, citing heavy reliance on H‑1B talent at centers such as MD Anderson Cancer Center and public university systems.
  • Texas actions follow a federal shift that set a $100,000 fee for new H‑1B applications in September 2025, and Florida’s university system advanced a similar one‑year moratorium now out for public comment.