The Texas Department of Agriculture (TDA) has proposed excluding businesses that employ H-1B visa holders from some grants it administers, potentially narrowing state aid access, but has not named the programs affected.
Texas Agriculture Commissioner Sid Miller announced the proposal Oct. 28, saying it is intended to direct taxpayer-funded support toward Texas workers. He urged Gov. Greg Abbott and other statewide elected officials to consider similar conditions for their agencies’ grants and economic development programs. Miller said, “Texas workers should come first. Period.”
TDA says grant programs it manages for independent boards, commissions or other entities would be outside the proposal when those bodies set their own eligibility rules. The department also says the change would not affect federal grant eligibility or participation in state-funded loan programs it administers.
The scope could matter for the Agriculture Production Resource Opportunity (AgPro) program, which TDA administers under the direction of the Texas Agricultural Finance Authority (TAFA). TDA reports that the current round received more than 1,100 applications and expects to send applicants status notices by Nov. 15, 2026. The department has not said whether the proposed condition applies to AgPro or its pending applications.
The 2026 application period closed May 14. Its criteria require applicant businesses to be headquartered in Texas and their owners to meet specified U.S. citizenship or residency requirements; they do not list an H-1B employee condition. Awards range from $5,000 to $500,000 per recipient.
Abbott’s separate Jan. 27, 2026, directive covers state agencies controlled by a head appointed by the governor and public institutions of higher education. It requires them to obtain written permission from the Texas Workforce Commission (TWC) before filing new H-1B petitions and remains in effect through May 31, 2027. U.S. Citizenship and Immigration Services (USCIS) describes H-1B as a temporary worker classification generally used for specialty occupations.
