Historically Underutilized Business Certification Process Suspended by Acting Texas Comptroller

October 28, 2025

(AUSTIN) - 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.