By: Roy Douglas Malonson
Texas House Democrats are strongly criticizing Acting Comptroller Kelly Hancock’s decision to revoke the certification of approximately 15,000 women and minority-owned businesses from the state’s Historically Underutilized Business (HUB) program—an initiative that has supported equitable access to state contracting opportunities for more than 25 years.
Acting under emergency rules that circumvent standard legislative procedures and oversight, Hancock rescinded HUB certifications for businesses owned by women, as well as Black, Hispanic, Asian-Pacific, and Native American Texans. Of the 15,762 previously certified businesses, only 485 disabled veteran–owned enterprises will retain eligibility under the newly renamed and substantially weakened “VetHUB” program.
Established in 1999 under then-Governor George W. Bush, the HUB program was created to ensure that economically disadvantaged business owners could compete more fairly for state contracts. The program neither guaranteed contracts nor imposed quotas; rather, it required state agencies to notify HUB-certified businesses of procurement opportunities and to make good-faith efforts toward participation goals. In the past year alone, HUB-certified businesses were awarded $4.1 billion in state contracts.
Texas House Democratic Leader Rep. Gene Wu (D– Houston): “Kelly Hancock has effectively shut the door on the American Dream for more than 15,000 Texas small business owners. Republicans frequently claim to support small businesses, yet when those businesses are owned by women and minorities, they are quick to dismantle access and revoke essential state certifications without hesitation. The only beneficiaries of this regressive decision will be large corporations, which will now face even less competition for state contracts.”
Texas House Democratic Caucus 2nd Vice Chair Rep. Ron Reynolds (D– Missouri City): “For decades, the HUB program has served as a critical resource for minority entrepreneurs who have long faced systemic barriers to economic opportunity. These businesses have the expertise and proven capacity to meet the demands of state contracts, yet Governor Greg Abbott and the Comptroller have chosen—without justification—to withdraw support, effectively removing the pathway that helped these entrepreneurs establish themselves.
“This decision is consistent with a troubling pattern we have witnessed in recent years. Republicans have drawn electoral maps that dilute the voices of Black and Brown voters, enacted laws that make it more difficult for us to vote, and now seek to limit our economic opportunities. They do not want us represented at the polls, in positions of influence, or competing for state contracts. Governor Abbott’s message could not be more explicit.”
Representative Linda Garcia (D–Mesquite): “Texas’s minority- and women-owned businesses do not need additional barriers; they need equitable access and opportunity. As an entrepreneur and small business owner myself, I understand the immense effort Texans invest in building enterprises that support their families and strengthen our state’s economy.
The Comptroller’s decision to dismantle the HUB program removes vital certifications from more than 15,000 businesses and jeopardizes their ability to compete. This action is not only harmful—it is economically short- sighted. Undermining the success of diverse small businesses ultimately undermines the overall strength and competitiveness of our state.”
