Texas has sent shockwaves through the business world with a dramatic overhaul of its Historically Underutilized Business (HUB) program, tossing out women- and minority-owned companies in favor of a new veteran-focused initiative. Comptroller Kelly Hancock, recently stepping into the role from his Senate seat, dropped the bombshell announcement Tuesday: the state’s go-to platform for supporting marginalized entrepreneurs is now laser-focused on disabled veterans—and everyone else is out.
Effective immediately, the HUB program gets a total makeover and a new name: Veteran Heroes United in Business, or VetHUB. Only veterans who carry at least a 20% service-related disability will get a shot at the coveted certification and the accompanying perks for landing state contracts, says Hancock’s office.
In a brisk move underscored by official emergency rules, the Comptroller’s office is axing all race-, ethnicity-, and gender-based certifications for businesses. Those who previously qualified based on being a woman or minority just received an abrupt email informing them their HUB status was revoked and their listings removed from the state directory.
Decades-old efforts in Texas to level the playing field for minority and female entrepreneurs just ended with a single press release. The program, once designed to give these groups a boost in state procurement, never had mandatory quotas—but agencies were urged to meet goals that favored HUB-certified firms. Now, that window has slammed shut.
Jun 5, 2019; Austin, TX, USA; General overall view of the Texas state capitol building and the downtown Austin skyline. Mandatory Credit: Kirby Lee-Imagn Images
For businesses with state contracts already in motion, there’s a small sigh of relief: their deals won’t be axed by the new changes. But for those hoping to renew, the door is closed. The Comptroller’s FAQ, updated Tuesday, makes that crystal clear.
Hancock, playing up the patriotic twist, declared: “Texas is answering the call for veterans, cutting bureaucracy, and honoring the Constitution. With VetHUB, we’re removing barriers of race and gender and making state contracting about service, not identity.”
This radical pivot follows months of suspense. Last October, the Comptroller’s office put the brakes on all fresh and renewed HUB certifications while it mulled compliance with executive orders banning diversity, equity, and inclusion agendas—a drumbeat led by President Trump and Governor Greg Abbott. Hancock himself broadcasted on social media that the freeze was all about ditching “race or sex quotas.”
The message is clear: Texas wants its state contracts going to those who’ve worn the uniform—not those defined by race or gender. Minority and women-owned businesses, once at the heart of state inclusion strategies, have been swept off the table in favor of veterans with service-related disabilities. The business landscape for state contracting in Texas just changed—dramatically.
