Austin, December 10, 2025

The Texas HUB program has undergone significant changes, now focusing solely on service-disabled veteran-owned businesses. This shift, resulting in the revocation of certifications for many minority- and women-owned firms, raises questions about diversity and equity in state contracting. The newly established VetHUB program aims to streamline state processes but has sparked concern within the entrepreneurial community as it could limit opportunities for various business sectors in Austin.

Changes to Texas HUB Program: What It Means for Austin’s Entrepreneurs

Veterans Take Center Stage in Restructured State Program

Austin, Texas – The Texas Comptroller’s office has announced a significant overhaul of the Historically Underutilized Business (HUB) program, refocusing its efforts exclusively on businesses owned by service-disabled veterans with a service-connected disability of 20% or higher. This restructuring marks a departure from the program’s original intent of supporting minority- and women-owned businesses, leading to the revocation of certifications for many companies that qualified based on race, ethnicity, or gender.

The newly named Veteran Heroes United in Business (VetHUB) program aims to streamline state contracting processes while removing potential biases linked to gender or race. These changes have sparked discussions among the business community about their impact on diversity, equity, and economic growth within Austin’s vibrant entrepreneurial landscape.

Overview of the HUB Program Revisions

The HUB program, established in the 1990s, was put in place to ensure that minority- and women-owned businesses could access state contracts more readily. However, recent legal interpretations led to a reevaluation of the program’s compliance with constitutional standards. Acting Texas Comptroller Kelly Hancock has indicated that the previous HUB structure raised concerns of unconstitutional discrimination against particular groups.

The revised VetHUB program will focus solely on eligible service-disabled veteran-owned businesses, indicating a shift in state policy designed to promote veteran-led entrepreneurship while simultaneously following Governor Greg Abbott’s Executive Order GA-55. This order specifically prohibits race- and sex-based preferences in the distribution of government benefits.

Implications for Current HUB Certified Businesses

The transition to VetHUB leaves many former HUB-certified businesses, particularly minority- and women-owned companies, without access to state contracting opportunities. The Comptroller’s office has communicated the revocation of certifications to affected businesses, which are now being removed from the state’s HUB directory. This has created a sense of uncertainty for those small-business owners who have relied on state contracts as a significant revenue stream.

Future of Contracting in Texas

Despite the sweeping changes, the Comptroller’s office has emphasized that existing contracts and associated reporting requirements will remain intact during this transition phase. While the future under the new program remains uncertain, this assurance may provide some solace to entrepreneurs who have already secured state contracts.

Many critics of the changes express concern that this focus on service-disabled veterans could unintentionally limit diversity in the state’s contracting landscape, which has supported vibrant sectors of minority and women entrepreneurship. Proponents argue that focusing on veterans aligns with the state’s commitment to honor and support those who have served in the military, potentially fostering a new class of innovative businesses.

Looking Ahead: Opportunities and Challenges

Austin’s business environment has long thrived on innovation and entrepreneurship, and reducing regulatory barriers can empower entrepreneurs to pursue emerging opportunities in the market. As the city prepares for the next phase of economic growth, community members are encouraged to reflect on how they can support local businesses and foster an inclusive business ecosystem that benefits all.

Conclusion

The restructured HUB program, now called VetHUB, represents a significant pivot in state contracting practices, with an emphasis on supporting service-disabled veterans. As Austin’s business owners adapt to these changes, it’s essential for the community to engage in discussions around economic opportunities and support resilient entrepreneurship across all sectors. The entrepreneurial spirit of Austin remains robust, and support for local businesses is more crucial than ever.

FAQ

What is the HUB program?

The Historically Underutilized Business (HUB) program was established in the 1990s to provide minority- and women-owned businesses with increased opportunities in state contracting.

What changes have been made to the HUB program?

The program has been restructured to focus exclusively on businesses owned by service-disabled veterans with a 20% or higher service-connected disability, leading to the revocation of certifications for businesses previously certified based on race, ethnicity, or gender.

Why were these changes implemented?

The changes were implemented to ensure the program complies with constitutional requirements and Governor Greg Abbott’s Executive Order GA-55, which prohibits race- and sex-based preferences in awarding government benefits.

How have these changes affected businesses?

Former HUB-certified businesses, many of which are minority- and women-owned, have had their certifications revoked and are being removed from the state’s HUB directory, potentially limiting their access to state contracting opportunities.

Will existing contracts be affected by these changes?

The Comptroller’s office has stated that existing contracts and reporting requirements will not be affected by this suspension. However, the future of these contracts under the new program structure remains uncertain.

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