Austin, December 4, 2025
The Texas Comptroller’s office has announced a restructuring of the Historically Underutilized Business (HUB) program, focusing exclusively on service-disabled veterans. The new VetHUB program requires businesses to have at least a 20% service-connected disability, sidelining women- and minority-owned businesses. Historically, the HUB program aimed to support economically disadvantaged groups, but this shift raises concerns about inclusivity in state contracting.
Austin, Texas – Texas Comptroller Restructures HUB Program, Excludes Women and Minority-Owned Businesses
The Texas Comptroller’s office has recently announced a significant restructuring of the Historically Underutilized Business (HUB) program, now emphasizing support exclusively for businesses owned by service-disabled veterans. This change now requires qualifying veterans to possess a minimum of 20% service-connected disability, effectively sidelining a wide segment of women- and minority-owned businesses that the program was originally intended to assist.
This updated focus shifts the HUB program, which has historically played a vital role in promoting equality in state contracting by aiding economically disadvantaged groups, towards a model now known as Veteran Heroes United in Business (VetHUB). These changes bring about a new chapter in Texas’s procurement landscape and present a variety of implications for local entrepreneurs.
Key Changes to the HUB Program
- Program Name Change: The HUB program is now renamed Veteran Heroes United in Business (VetHUB), emphasizing its new focus on service-disabled veterans.
- Eligibility Criteria: Only businesses owned by service-disabled veterans with a 20% or higher service-connected disability are eligible for VetHUB certification.
- Revocation of Previous Certifications: Businesses previously certified under the HUB program based on race, ethnicity, or sex will have their certifications revoked unless they can demonstrate ownership and control by a service-disabled veteran.
Background and Implementation
Established in the 1990s and codified by the Texas Legislature in 1999, the HUB program aimed to assist minority and women-owned businesses by improving their access to state contracts. The recent restructuring aligns the program with constitutional guidelines by eliminating race- and sex-based criteria, a move that underscores the state’s commitment to legal compliance while attempting to streamline contracting procedures. As the Comptroller’s office begins revoking outdated certifications, it will concurrently issue new VetHUB certifications based on the updated eligibility requirements.
Impact on Existing Contracts
The overhaul will not affect contracts awarded prior to the new regulations; these existing agreements remain intact. However, businesses previously certified under the old HUB guidelines will need to navigate the new landscape, with the Comptroller’s office having communicated directly with affected organizations about their revoked certifications. This transition aims for clarity and compliance as the state transitions to the VetHUB model.
Reactions and Future Considerations
The restructuring has ignited discussions across various sectors regarding the implications for diversity and inclusiveness in state contracting. While some view the focused support for service-disabled veterans as a positive step, others express concern about the potential exclusion of women and minority-owned businesses. Stakeholders are urged to review the updated program guidelines to assess how these new policies may impact their business prospects within the state procurement ecosystem.
Frequently Asked Questions (FAQ)
What is the HUB program?
The Historically Underutilized Business (HUB) program was established to support businesses owned by economically disadvantaged groups, including minorities, women, and service-disabled veterans, in accessing state contracts.
Why was the HUB program restructured?
The restructuring aims to align the program with constitutional guidelines by removing race- and sex-based preferences, focusing exclusively on service-disabled veterans with a 20% or higher service-connected disability.
Who is eligible for the new VetHUB program?
Only businesses owned by service-disabled veterans with a 20% or higher service-connected disability are eligible for VetHUB certification.
What happens to businesses previously certified under the HUB program?
Businesses previously certified based on race, ethnicity, or sex will have their certifications revoked unless they can demonstrate ownership and control by a service-disabled veteran.
Will existing contracts be affected by these changes?
Contracts awarded prior to the implementation of the new rules will remain unaffected. The changes apply to future certifications and contracts.
Key Features of the VetHUB Program
| Feature | Description |
|---|---|
| Program Name | Veteran Heroes United in Business (VetHUB) |
| Eligibility | Businesses owned by service-disabled veterans with a 20% or higher service-connected disability |
| Certification Criteria | At least 51% ownership and control by a service-disabled veteran |
| Impact on Previous Certifications | Revocation of certifications based on race, ethnicity, or sex unless ownership and control by a service-disabled veteran is demonstrated |
| Effect on Existing Contracts | No impact; existing contracts remain unaffected |
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