The Historically Underutilized Business (HUB) program for the state of Texas has been frozen by order of Acting Texas Comptroller Kelly Hancock. During the freeze, no new or renewed HUB certifications will be issued by the state.
The announcement of the freeze comes after recent challenges to race- and gender-conscious remedies to disparities in government contracting, and the Acting Comptroller's announcement points to ensuring "compliance with the U.S. Constitution, Texas Constitution and Gov. Greg Abbott's Executive Order GA-55" as providing the rationale for the freeze. The announcement further stated that the Comptroller's office would conduct "a detailed review of the program's legal framework" during the freeze. The freeze does not affect existing contracts let under the terms of the HUB program, and the Comptroller's office will continue to collect business participation data during the freeze.
The HUB program certified businesses meeting certain eligibility criteria, including meeting SBA size standards and being owned by women, certain minorities, or service-disabled veterans. Under the terms of the program, state contracts with a value of over $100,000 were required to have a HUB subcontracting plan, under which good-faith efforts were required to be made to meet HUB participation goals set by the government. The program dates back to the 1990s when it was created through several different laws by the state legislature, eventually being codified in its current form in 1999. To abolish the program outright would require new legislation or a court ruling deeming it unconstitutional.
Read the press release announcing the freeze from the Comptroller's office at https://comptroller.texas.gov/about/media-center/news/20251028-historically-underutilized-business-certification-process-under-review-by-acting-texas-comptroller-1761686774358.
Read the executive order from the Governor (issued in January of 2025) referenced in the announcement at https://gov.texas.gov/uploads/files/press/EO-GA-55_Prohibiting_Govt_Race_Discrim_IMAGE_2024-01-31.pdf.
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