Austin, Texas, December 24, 2025
The Texas Comptroller’s Office has restructured the Historically Underutilized Business (HUB) program, now called VetHUB, focusing solely on service-disabled veteran-owned businesses. This change, effective December 2, has decertified thousands of small businesses that were previously eligible. The new program aligns with Governor Abbott’s legislation prohibiting race- and sex-based preferences in state programs, raising concerns among small business owners who relied on the inclusivity of the original HUB program.
Texas’ HUB Program Overhauled, Excluding Many Small Businesses
Austin, Texas — The Texas Comptroller’s Office has restructured the Historically Underutilized Business (HUB) program, now known as Veteran Heroes United in Business (VetHUB), limiting eligibility exclusively to service-disabled veteran-owned businesses. This change, effective December 2, 2025, has resulted in the decertification of thousands of small businesses previously qualified under the original HUB criteria.
Impact on Small Businesses
The abrupt policy shift has raised significant concerns among small business owners. Julie Irvin Hartman, founder and CEO of B2G Victory, a firm that assists businesses in securing government contracts, indicated that her company, along with approximately 14,000 other small businesses, no longer qualifies for the program. The sudden change has resulted in the loss of substantial contracts and added uncertainty to the business climate in the state.
Details of the Program Change
The newly structured VetHUB program focuses solely on businesses owned by service-disabled veterans who have a minimum 20% service-connected disability. This revision aligns with Governor Greg Abbott’s Executive Order GA-55, which prohibits race- and sex-based preferences in state programs. Consequently, certifications based on race, ethnicity, or gender have been revoked, and statewide HUB utilization goals have also been eliminated.
Background of the HUB Program
Established in the 1990s, the HUB program aimed to promote equal business opportunities for women, minorities, and service-disabled veterans in state procurement processes. This program served as a platform for these groups to compete for government contracts, effectively addressing disparities in state contracting and allowing a more diverse array of businesses to thrive.
Next Steps for Affected Businesses
Businesses that have been decertified are advised to take immediate steps to remain competitive. They should register as vendors on the Centralized Master Bidders List (CMBL), update their National Institute of Governmental Purchasing (NIGP) codes, monitor Electronic State Business Daily (ESBD) bid opportunities, and adjust subcontracting plans as necessary. These actions are crucial in maintaining visibility and competitiveness in the state procurement process.
Conclusion
The transition from the HUB program to VetHUB marks a significant policy shift in Texas’ approach to state contracting. While the initiative aims to support service-disabled veteran entrepreneurs, it has raised valid concerns among small business owners who previously benefitted from the program’s inclusivity. As the state adjusts to these changes, the long-term impact on its business ecosystem and the resilience of small businesses remains to be seen.
Frequently Asked Questions (FAQ)
What is the VetHUB program?
The VetHUB program is the restructured version of Texas’ Historically Underutilized Business (HUB) program, focusing exclusively on service-disabled veteran-owned businesses with a minimum 20% service-connected disability.
Why were businesses decertified from the HUB program?
Businesses were decertified because the HUB program’s eligibility criteria were revised to comply with Governor Greg Abbott’s Executive Order GA-55, which prohibits race- and sex-based preferences in state programs.
How can affected businesses remain competitive in state procurement?
Affected businesses should register as vendors on the Centralized Master Bidders List (CMBL), update their NIGP codes, monitor Electronic State Business Daily (ESBD) bid opportunities, and adjust subcontracting plans as necessary to maintain visibility and competitiveness.
What was the original purpose of the HUB program?
The HUB program was established in the 1990s to promote equal business opportunities for women, minorities, and service-disabled veterans in state procurement processes, addressing disparities in state contracting.
What are the eligibility criteria for the new VetHUB program?
The VetHUB program is exclusively for businesses owned by service-disabled veterans with a minimum 20% service-connected disability.
Key Features of the VetHUB Program
| Feature | Description |
|---|---|
| Eligibility | Service-disabled veteran-owned businesses with a minimum 20% service-connected disability |
| Program Focus | Support for service-disabled veteran entrepreneurs in state contracting |
| Certification Criteria | Revocation of race, ethnicity, and gender-based classifications |
| Statewide Goals | Elimination of statewide HUB utilization goals; agencies to establish their own VetHUB goals |
| Impact on Previous HUB Businesses | Decertification of businesses not meeting new eligibility criteria |
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