Published October 31, 2025 at 12:40 PM CDT

The state program intended to give additional exposure to businesses owned by women, minorities and disabled veterans seeking state contracts was frozen by the Texas Comptroller of Public Accounts’ office this week, the latest instance of Republican state officials targeting a program perceived as promoting diversity, equity and inclusion.

Information regarding the Historically Underutilized Business program was removed from the comptroller’s website and the office said it was pausing the issuance of all new and renewed certifications for state procurement, according to a statement by the comptroller’s office.

The office said it was freezing the program to allow for a review to ensure it is constitutional and complies with Gov. Greg Abbott’s January executive order banning DEI programs from state agencies.

“Businesses deserve a level playing field where government contracts are earned by performance and best value — not race or sex quotas,” acting Comptroller Kelly Hancock wrote on social media Tuesday. “We must END ALL DEI in Texas!”

Hancock’s social media posts were coupled with a memo to state agencies and universities saying they are prohibited from granting contracts on the basis of race, ethnicity or sex.

While his office has stopped issuing new certifications, Hancock does not have the power to end the program altogether.

The program, in its current form, was written into state law over the course of several legislative sessions during the 1990s. Doing away with the program would require either a court ruling it unconstitutional or the Legislature repealing the law.

State Sen. Royce West, D-Dallas, co-authored the 1999 bill that codified the program into state law and said its opponents misunderstand the program’s intent and effectiveness.

“The program is not a quota program,” West said Thursday. “This program was passed when (George) W. Bush was governor of Texas, and he was not a governor that would have accepted a quota program. We were able to strike what we thought was a good compromise, a fair program that made sure agencies would go out and make an effort to seek procurement opportunities.

“All it does is create opportunities for smaller, disadvantaged businesses to be part of the procurement network for the state of Texas,” West added.

That legislation placed the program under the purview of the comptroller’s office, which is tasked with certifying HUB businesses and monitoring other state agencies for compliance in their procurement processes. A business can be certified under the program if a majority of its ownership is determined to be an “economically disadvantaged person,” defined by the state as Black Americans, Hispanic Americans, women, Asian Pacific Americans, Native Americans and disabled veterans.

The law sets requirements for state agencies to solicit bids from a set number of HUB-certified businesses, but does not require that a HUB-certified business must be selected for a given contract.

The law also set statewide goals for HUB participation in state contracts based on the 2009 State of Texas Disparity Study. That study was also removed from the comptroller’s office on Tuesday.

Michael Adams, a professor and director of the Master of Public Affairs Graduate Program at Texas Southern University, said programs seeking to increase the participation of women and minority-owned businesses in the public procurement process are present in all levels of government across the country.

With government representation of minorities still lagging behind their population, programs like Texas’ HUB program were seen as a way of helping historically disenfranchised groups by taking advantage of government’s status as the nation’s largest employer to fight discrimination, Adams said.

“How do you move beyond the public welfare state if you don’t have the opportunity to strike out and create a business and create opportunity for yourself?” Adams said. “In terms of policy outputs, the HUBs have been a way of doing that.”

West said the program has not been a political issue throughout most of its existence, arguing the recent attention is a result of Republican attempts during President Donald Trump’s second term to roll back decades of progress toward societal equity.

“It’s all part of the Project 2025 plan,” West said, referencing an ultra-conservative political initiative published by Heritage Foundation in preparation for Trump’s second term. “Many of the cultural wars in America start in Texas … Now we’re trying to further Trump’s goals to do away with any programs that give people a hand up, not a hand down.”

West noted that women-owned businesses are by far the biggest benefactor of the HUB program, “but the focus by Republicans has been on the poster child, which are African American owned businesses.”

Hancock took office in July in an acting role after former Comptroller Glen Hegar was named chancellor of the Texas A&M University System. Hancock said the review of the program has been a top priority since he took office.

The decision comes after Austin-based recruiting company Aerospace Solutions sued the state last November arguing the HUB program puts it at a disadvantage when bidding for state contracts because it is not a HUB-certified company.