AUSTIN, Texas — More than 15,000 Texas businesses were removed from the state’s Historically Underutilized Business (HUB) program Tuesday after acting Comptroller Kelly Hancock implemented sweeping changes that eliminated eligibility for nearly every woman-, minority- and disability-owned firm previously certified. Only about 485 service-disabled veteran-owned businesses remain eligible under the newly branded “VetHUB” program.
The move created immediate confusion. Some businesses received approval notices for certification renewals only to be alerted hours later that they had been removed from the program entirely. Julie Irvin Hartman, who runs a government contracting advisory firm, said she has spent days fielding frantic calls from clients who rely on HUB certification to compete for state contracts. “I’m the expert … and telling people, ‘I don’t know.’ It’s tough right now,” she said.
Hancock argued the overhaul was necessary to comply with Gov. Greg Abbott’s executive order restricting diversity, equity and inclusion programs. No court has ruled the HUB program unconstitutional, and lawmakers who authored the original bipartisan statute dispute whether the comptroller has the authority to change it unilaterally.
Business owners say the loss of certification could mean lost revenue, reduced contracting opportunities and major operational adjustments. Some firms use HUB status as a key marketing tool, while others rely on the additional visibility the program provides in state procurement.
State Sen. Royce West warned the decision undermines legislative authority, calling the HUB program an essential tool for ensuring fair access to state contracting.
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