The American Immigration Council is a non-profit, non-partisan organization. Tens of thousands of DACA recipients in Texas may soon be stripped of their ability to work in the U.S. lawfully—and the consequences won’t stop at the state line.
In January 2025, the U.S. Fifth Circuit Court of Appeals held that portions of a 2022 DACA regulation – those that grant employment authorization and “lawful presence” – are unlawful. The Court preserved the part of DACA that provides protection from removal, however, treating it as lawful and severable from the other provisions. Critically, the Court also limited the geographic scope of a prior nationwide injunction to the state of Texas, meaning that practical effect of the decision would apply only within Texas.
The case has now returned to U.S. District Judge Andrew Hanen to determine how DACA should work under the new modified ruling.
That decision matters because nearly 90,000 Texans are DACA recipients, making Texas home to the second largest DACA population in the country. The implications strike at the core of Texas’ economy, community stability, and its identity as a state that attracts talent.
A Texas-only DACA system—without work permits or lawful presence?
On September 29, the federal government submitted a proposal outlining how it recommends Judge Hanen implement the Fifth Circuit’s ruling. The plan details a Texas-specific DACA structure, tying access to work authorization and lawful presence to a recipient’s address on record with U.S. Citizenship and Immigration Services (USCIS). Under this plan, simply moving into Texas could trigger the revocation of both a work permit and lawful presence within 15 days.
If approved, the consequences would be sweeping. New DACA applicants in Texas, or those reapplying after a lapse, could receive deferred action but not employment authorization or lawful presence. Meanwhile, current recipients in Texas who obtained DACA before July 16, 2021, remain temporarily shielded by a court-ordered stay. If that stay is modified, their work permits could be revoked with only 15 days’ notice. While DACA renewals are still being processed normally for individuals in Texas, those protections could change dramatically under the proposed plan.
Legislative inaction—and legal uncertainty—fuel the crisis
This is all unfolding against a backdrop of congressional gridlock. Despite majority public, bipartisan support in Congress for Dreamers, opposition from Republicans and the Trump administration has stalled progress toward a permanent solution with Texas Senator Cornyn recently saying, “These young people who’ve now grown to be adults have found themselves in a very bad situation but don’t see any prospects for immigration bills, including for them, any time soon.”
The economic stakes are real
Texas’ DACA recipients are deeply embedded in the workforce. An estimated 221,000 Texans are eligible for the program, and 97% of DACA-eligible individuals are employed. Together, they contribute $8.2 billion in household income and pay nearly $2 billion in combined state, local, and federal taxes each year.
Behind those numbers are real people: teachers, engineers, health care workers, small business owners, and frontline employees. If work permits are revoked in Texas, the economic shock will ripple through classrooms, clinics, job sites, and small businesses statewide.
Nationally, if other states follow Texas’ lead, more than 530,000 DACA recipients could be forced out of the labor force within two years, resulting in billions of dollars in turnover, recruitment, and retraining expenses for employers. And there simply aren’t enough U.S.-born workers to fill in the gaps.
This is not a theoretical debate. It is a glimpse of what happens when hundreds of thousands of young people, workers, and community members are left in limbo, suspended between courtrooms and political deadlock.
Early warning signs are already emerging
The effects of legal and administrative shifts are already being felt. Since the June 2025 injunction on the Texas Dream Act, at least four Texas colleges have blocked DACA recipients from receiving in-state tuition, curtailing educational access for students who have long called Texas home.
More than 20 DACA recipients have been detained by immigration authorities despite their protections—highlighting the fragility of the program even amid active litigation.
In a related policy shift, the Texas Department of Public Safety (DPS) has recently suspended the issuance of commercial driver’s licenses to noncitizens—including DACA recipients—in response to federal guidance.
This restriction cuts deep: 1.1% of truck drivers in Texas are DACA-eligible, and in Texas, tractor-trailer drivers remain one of the most in-demand occupations in the energy sector. Immigrants make up more than 4% of all driver/sales workers and truck drivers in the industry.
The bottom line: watch Texas, because the nation will follow
Texas is a bellwether. The decisions made by courts, agencies, and institutions here will ripple far beyond state lines.
At its best, Texas leads with courage and creativity. It was the first state in the nation to pass a law granting in-state tuition to undocumented students who graduated from Texas high schools—a bold, bipartisan move that became known as the Texas Dream Act. That legacy reflects what’s possible when leadership prioritizes collaboration, compromise, and the long-term resilience of the state’s economy and communities.
But in times of division, when uncertainty is sown in fields of fear, we see a different kind of leadership take hold; one that trades courage for caution, and wisdom for reaction. If lawful presence and work permits can be revoked in Texas for DACA recipients, other states may not be far behind.
