Full Breakdown
Texas Judge Temporarily Restores HUB Program for Women and Minority-Owned Businesses
4/15/2026, 5:16:34 AM
Court Ruling on HUB Program
An Austin district judge has temporarily reinstated the rules of Texas's Historically Underutilized Business (HUB) Program, allowing women- and minority-owned businesses to qualify for the program once again. This decision follows a lawsuit filed on March 2 by four business owners and the Greater Houston chapter of the National Association of Minority Contractors against Texas's acting Comptroller Kelly Hancock. The lawsuit challenged emergency rules that had removed women and minorities from the HUB program, stripping their businesses of HUB certifications. The judge's ruling specifically reinstated six businesses involved in the lawsuit and mandated that state agencies inform those decertified since December about the court's decision.
Background of the HUB Program
The HUB Program was established in the 1990s through bipartisan legislation to assist minority- and women-owned businesses in securing state contracts. While the program does not impose quotas, it sets aspirational goals for state agencies. In 2024, HUB-certified businesses secured 3,634 contracts worth over $4 billion. However, in December 2025, Hancock announced that his office would halt the issuance of new or renewed certifications while the program underwent review. This decision, which limited eligibility to service-disabled veteran business owners, was met with significant backlash.
Legal and Political Context
The lawsuit is the first legal challenge to Hancock's changes to the HUB program. Critics, including State Senator Royce West, argue that only the Legislature has the authority to modify the program, emphasizing that Hancock's actions overstepped his statutory authority. Alphonso David, president of the Global Black Economic Forum and lead counsel for the plaintiffs, stated that the executive branch cannot unilaterally alter laws passed by the Legislature. Business owners have reported losing government contracts due to the changes, with some contracts being withdrawn or returned to competitive bidding.
Official Statements and Responses
In response to the court's ruling, Hancock defended the changes to the HUB program, citing a 2023 U.S. Supreme Court decision that ended affirmative action in college admissions and a 2025 executive order by Governor Greg Abbott banning diversity, equity, and inclusion (DEI) policies in Texas agencies. Hancock asserted that all Texas businesses are eligible to compete for state contracts, emphasizing fairness and equal treatment.
Criticism and Opposition
Critics of Hancock's actions argue that the changes have severely impacted minority and women-owned businesses, undermining their ability to compete for state contracts. Ruben Mercado Jr., founder of Ipsum General Contractors, noted that a $1 million contract he was pursuing was withdrawn following the restructuring of the HUB program. Wendell Stamley, president of the National Association of Minority Contractors, highlighted that many members have faced canceled contracts and unexpected changes in bidding processes.
What's Next
The case is set for trial on November 9, where the plaintiffs will seek to restore the HUB program to its original form, arguing that Hancock's modifications were unlawful and violated the Texas Constitution. The outcome of this case could have significant implications for minority- and women-owned businesses in Texas and the future of the HUB program.
