Acting Comptroller Kelly Hancock has announced an immediate freeze on all new and renewed certifications for the state’s Historically Underutilized Business program, pending a legal review to ensure the program complies with constitutional requirements and recent executive orders.
The move comes amid heightened scrutiny of programs that use race and sex-based criteria in awarding government contracts.
The announcement, distributed to Texas state agencies on Tuesday, pauses the process for certifying new HUB contractors and renewing existing certifications for participation in state procurement.
The action is part of an effort to ensure full compliance with the U.S. Constitution, the Texas Constitution, and Gov. Greg Abbott’s Executive Order GA-55, which prohibits race and sex-based preferences in state benefits such as government contracts.
“Texans deserve a level playing field where government contracts are earned by performance and best value—nothing more, nothing less,” said Hancock. “Our office is committed to protecting taxpayer funds and ensuring that every Texas business has an equal opportunity to compete for government contracts. Today’s action reflects that commitment and reinforces Texas’ longstanding principles of fairness and accountability.”
The comptroller’s office will conduct a detailed review of the HUB program’s administrative procedures, focusing on the effects of recent court rulings related to the constitutionality of diversity, equity, and inclusion initiatives.
While new certifications are suspended, the agency will continue collecting data on business participation and begin rulemaking to ensure procurement processes are strictly race- and sex-neutral moving forward.
Existing contracts and unrelated reporting requirements will not be affected by this suspension. Eligible businesses may still compete for state contracts and register on the Centralized Master Bidders List, ensuring continued open competition during the review period.
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