Red state may shed massive share of skilled workforce under new rule attacking migrants

People seeking a host of professional licenses in Texas, from electricians to dog breeders, will soon have to prove they are in the country legally after the state’s Commission of Licensing and Regulation on Tuesday adopted a new rule that could affect thousands of workers.

Commissioners unanimously approved the change after hearing from a parade of speakers who largely asked them to do the opposite because of worries that it will hamper the state’s economy and burden immigrants trying to make an honest living. The speakers also argued the move will push people to work without a license, and erode state oversight of crucial industries.

The commission oversees the Texas Department of Licensing and Regulation, which plans to implement the rule May 1. An agency spokesperson did not immediately respond Tuesday for comment.

Despite the agency’s stated intent to follow federal statute and the concerns raised by workers across the state, TDLR lawyer Derek Burkhalter told commissioners that some noncitizens will still be able to get licenses — so long they meet one of the qualifications under a three-decade-old federal law underpinning the rule change and provide required documentation.

People can qualify for benefits under the federal law if they were granted asylum, admitted as a refugee or are recognized as a victim of human trafficking, for example.

“The proposed rules do not impose a citizenship requirement,” Burkhalter said. “Individuals who are not U.S. citizens may still be eligible for licensure if they meet the eligibility criteria.”

TDLR argues that the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 prohibits people in the country unlawfully from receiving certain benefits, including professional licenses administered by the state, unless they qualify for certain exceptions. The lists of documents that can be used to apply for a license will be posted on TDLR’s website, officials said Tuesday.

TDLR joins at least three other state agencies that have cracked down on immigration through administrative and regulatory procedures since President Donald Trump returned to the White House last year. The Texas Department of Public Safety has stopped issuing commercial driver’s licenses to many noncitizens, the Texas Department of Motor Vehicles imposed new strict photo ID requirements for vehicle registrations, and the Texas Secretary of State’s Office has been on the hunt for noncitizens registered to vote, at times erroneously flagging Americans as potential noncitizens.

The changes mirror a presidential executive order from February 2025, when Trump ordered federal agencies to crack down on the same 1996 law to “defend against the waste of hard-earned taxpayer resources, and protect benefits for American citizens in need, including individuals with disabilities and veterans.”

It remains unclear how many undocumented workers will be affected in Texas by the new licensing requirement. The state is home to an estimated 1.7 million people without authorization who work in numerous key industries such as construction, hospitality and an assortment of others under the purview of TDLR.

Steve Bruno, the agency’s deputy executive director for licensing and regulatory services, told commissioners that fewer than 2% of the licenses issued by the agency did not have a Social Security number attached to them.

But TDLR could not assume those individuals were running afoul of federal law, agency officials said, because there are a number of ways for noncitizens to live and work in the country through federal programs.

The agency issued more than 1 million individual and business licenses during the 2025 fiscal year.

TDLR’s website currently contains guidance to apply for occupational licenses for those who do not have a Social Security number. The page links to a form, last updated by the commission in January, that instructs applicants to attach supporting documentation, such as a green card, immigrant visa or refugee travel document.

To offer commissioners context, Bruno said the agency had issued roughly 19,000 new licenses and renewed another 39,000 in February alone.

The information did little to assuage concerns from a variety of industries.

Agency officials received 450 comments about the proposed rule; of those, all but 28 were against it.

Among those who testified in person Tuesday morning was Rocio Gomez, a 35-year-old Austin resident who holds an eyelash extension specialist’s license and instructs at a beauty school in the capital city. Some of her students without legal status have been in great distress since the agency proposed the rule in January, at times crying to her about the uncertainty of their future, she said in an interview after testifying.

“Seeing how this has affected the students affects us too, emotionally. It appears that everything is at the whim of them,” Gomez said in an interview in Spanish, gesturing at the dais where the commissioners sat.

Other speakers — salon owners, educators and beyond — reminded commissioners about the strict requirements already in place to earn some licenses. Industries that will be affected range from dyslexia therapists to used car parts recyclers to dog breeders, according to TDLR’s proposal filed with the state.

Some of the licenses require many hours of practice and safety education. For instance, earning a cosmetology operator license in Texas can take more than a year as applicants learn about chemicals and hygiene as well as hair technique.

In barring undocumented people from getting licensed, the state will force them into the black market and lead to a proliferation of people providing services without oversight or proper permitting, speakers told commissioners.

The issue has already captured the attention of elected officials and immigration hardliners, who welcomed the new rule.

"For too long, benefits to illegal aliens have served as a magnet to entice migrants to enter the United States illegally,” Andrew Mahaleris, a spokesperson for Gov. Greg Abbott, said in a statement after the vote. “Texas will not reward illegal immigration by issuing professional licenses to those here unlawfully. These changes protect the integrity of our licensing system, uphold federal law, and ensure jobs go to hardworking Texans.”

State agencies must run proposed rule changes by the governor’s office before they are made available for public comment.

Democratic state Sen. Sarah Eckhardt of Austin, who is running for comptroller of public accounts, submitted a comment to TDLR in opposition to the change. Using published estimates by a variety of groups, the senator calculated that the rule change could result in a reduction of the state’s skilled workforce by 8 to 10%.

“Texas cannot afford to lose qualified and skilled licensees in these high-demand jobs,” Eckhardt wrote, urging the commission to study the potential effect. “The impact of TDLR’s proposed rule is likely more far-reaching than what was initially assessed by the agency.”

In their formal rule proposal filed with the state, agency officials wrote that there would be no anticipated economic impacts or effects on small and microbusinesses. In response to questions about this on Tuesday, they told commissioners that it was difficult to assess potential impact because they did not want to assume a licensee was afoul of federal law simply because they did not provide a Social Security number.

Commission Chair Rick Figueroa asked for frequent updates to the commission as the rule is implemented, acknowledging the agency was entering uncharted territory perhaps only in the company of the Department of Motor Vehicles, which made its change months ago.

“This is a front-burner issue in regards to information back to the commission,” Figueroa said. “I'm sure we're building a plane and flying it a little bit.”

Ayden Runnels contributed to this report.

This article first appeared on The Texas Tribune.