Acting Texas Comptroller Kelly Hancock has announced a freeze on new approvals for companies seeking certification as Historically Underutilized Businesses (HUB), a state program that prioritizes non-white male–owned companies for government contracts.
The suspension, announced last Tuesday, halts new approvals for the HUB program while the comptroller’s office conducts a legal review of its framework. The review aims to ensure compliance with both the US and Texas constitutions, as well as with Governor Greg Abbott’s executive order prohibiting race- and sex-based preferences in the awarding of government benefits.
“Texans deserve a level playing field where government contracts are earned by performance and best value – nothing more, nothing less,” Hancock said in a public statement. “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.”
Under current rules, a company must be more than 50 percent owned by black Americans, Hispanics, Asian Pacific Americans, Native Americans, service-disabled veterans, or women to qualify as an HUB. Established in 1991, the program requires state agencies to make a “good faith” effort to include these businesses when awarding contracts.
The move comes as Texas and other conservative-led states intensify scrutiny of diversity, equity, and inclusion initiatives in government operations, following a series of court rulings questioning the constitutionality of race-based programs.
