The Texas comptroller’s office is ending on a permanent basis, certifying businesses owned by minorities and women.
Acting comptroller Kelly Hancock has announced what was the HUB, or historically underutilized business program, will be available only to small businesses owned and operated by veterans with a 20 percent or higher service-connected disability.
Businesses previously certified as HUB’s based on race, ethnicity or sex will no longer qualify unless they demonstrate ownership and control by a service-disabled veteran.
Hancock said the changes brings regulations into compliance with the state and U.S. constitutions.
In October, when the HUB program was placed on an administrative freeze, at Texas A&M a spokesperson told WTAW News during the last fiscal year at the main campus, approximately 22 percent of total dollars awarded to contractors…amounting to $134 million dollars…went to 274 HUB’s. We have asked how much of that went to veteran-certified HUB’s.
News release from the Texas comptrollers office:
Acting Texas Comptroller Kelly Hancock today announced the state’s Historically Underutilized Business (HUB) program has been restructured under emergency rules and will now operate as Veteran Heroes United in Business (VetHUB), a program focused exclusively on small businesses owned and operated by veterans with a 20 percent or higher service-connected disability.
The emergency rules, sent today to the Texas Register and effective immediately, reduce the program’s size significantly, bringing its administration into alignment with the Texas and U.S. constitutions by removing race- and sex-based preferences and adjusting the program’s focus to service-disabled veterans who qualify under legislative guidelines established in 2015.
“Our nation’s veterans have always stepped up for us,” Hancock said. “VetHUB is Texas’ way of stepping up for them — cutting red tape, restoring constitutional integrity and opening doors for the men and women who wore our nation’s uniform. These emergency rules ensure Texas’ state contracting is free from gender or race discrimination and keep the program centered on those who earned this support through their service.”
Businesses previously certified by the Comptroller of Public Accounts as HUBs based on race, ethnicity or sex will no longer qualify under the new rules unless they demonstrate ownership and control by a service-disabled veteran. The Comptroller’s office will move expediently to revoke outdated certifications and issue new VetHUB certifications.
Hancock previously announced an administrative freeze of the HUB program in October pending agency legal review.
More information regarding VetHUB, including frequently asked questions for small businesses, is available on the Comptroller’s website.
Original story, November 11 2025:
For 25 years, the Texas comptroller’s office promoted state agencies purchasing goods and services from historically underutilized businesses, or HUB’s.
Then the new comptroller announced on October 28th suspending issuing new and renewed HUB certificates.
Acting comptroller Kelly Hancock issued a news release which says the HUB suspension does not apply to businesses with current certifications or current HUB contracts.
HUB certifications require businesses to have a minimum 51 percent ownership by service-disabled veterans, minorities, or women.
Hancock’s news release says the suspension on issuing new and renewed HUB certifications complies with state and federal orders that prohibits race- and sex-based preferences when awarding government benefits.
The news release also says the suspension follows recent court rulings addressing the constitutionality of diversity, equity, and inclusion initiatives.
At Texas A&M, a spokesman tells WTAW News that there has been no impact by Hancock’s suspension.
At A&M, nearly $134 million dollars went to 274 HUB contractors at the main campus during the fiscal year that ended August 31st. That’s about 22 percent of total dollars spent on among other things, heavy construction, building construction, special trade, professional services, other services and commodity purchasing.
News release from acting Texas comptroller Kelly Hancock issued October 28, 2025:
Acting Texas Comptroller Kelly Hancock today announced a freeze on the issuance of new and renewed Historically Underutilized Business (HUB) certifications for state procurement, pending further action to ensure the program’s administrative procedures and rules are constitutional.
The suspension, announced in guidance distributed (PDF) today to other Texas agencies, ensures immediate compliance with the U.S. Constitution, Texas Constitution and Gov. Greg Abbott’s Executive Order GA-55, which prohibit race- and sex-based preferences when awarding government benefits. The Comptroller’s office will conduct a detailed review of the program’s legal framework in light of recent court rulings addressing the constitutionality of diversity, equity, and inclusion (DEI) initiatives.
“Texans deserve a level playing field where government contracts are earned by performance and best value – nothing more, nothing less,” Hancock said. “Our office is committed to protecting taxpayer funds and ensuring that every Texas business has an equal opportunity to compete for government contracts. This action today reflects that commitment and reinforces Texas’ longstanding principles of fairness and accountability.”
While new certifications are suspended, the Comptroller’s office will continue collecting business participation data and will undertake rulemaking and other actions to ensure the state procurement process uses only race- and sex-neutral standards.
The action does not affect existing contracts or other non-HUB related reporting requirements. Eligible businesses may continue to compete for state contracts and register with the Centralized Master Bidders List.