Texas Pauses HUB Certifications for Review
AUSTIN – Texas Comptroller Kelly Hancock announced today a temporary halt to the approval of new and renewal applications for Historically Underutilized Business (HUB) certifications within the state’s procurement system. This pause is a proactive measure to ensure the program fully aligns with both the U.S. and Texas Constitutions, as well as with Governor Greg Abbott’s Executive Order GA-55.
The Comptroller’s office distributed guidance to state agencies outlining the suspension, which is effective instantly. The action comes in response to recent legal challenges concerning the constitutionality of diversity, equity, and inclusion (DEI) programs and aims to prevent race- or sex-based considerations in the awarding of state contracts.
“Texas businesses shoudl compete and win contracts based on their merit and the value they provide – period,” stated Comptroller Hancock. “We are dedicated to responsible stewardship of taxpayer dollars and guaranteeing a fair and equitable possibility for all Texas companies seeking state business. This decision underscores that commitment and upholds our state’s values of fairness and accountability.”
During the suspension, the Comptroller’s office will thoroughly examine the HUB program’s legal foundation and initiate rule-making processes to establish procurement standards that are entirely race- and sex-neutral.data collection on business participation will continue throughout this review.
Importantly,this action will not impact current state contracts,nor will it alter existing reporting requirements unrelated to HUB status.Businesses eligible to bid on state contracts are encouraged to continue doing so and can still register on the Centralized Master Bidders List (CMBL).
Further information regarding the suspension is available in the guidance document released by the comptroller’s office: https://comptroller.texas.gov/about/media-center/news/docs/hub-guidance.pdf
