Texas Comptroller Issues Emergency Rules Overhauling HUB Program

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Acting Texas Comptroller Kelly Hancock has announced that Texas's Historically Underutilized Business (HUB) program has been formally restructured under newly issued emergency rules, transforming it into Veteran Heroes United in Business (VetHUB).

The revamped program will now exclusively serve small businesses owned and operated by veterans with a service-connected disability of 20% or higher. Before this change, the HUB Program was created to allow for small minority and women-owned businesses to get equal opportunities when seeking lucrative state contracts.

The emergency rules, sent to the Texas Register and effective immediately, significantly narrow the scope of the original HUB program. The Comptroller's office said the changes were necessary to align the program with both the Texas and U.S. constitutions by eliminating race and sex-based preferences and refocusing eligibility on service-disabled veterans, consistent with authority granted by the Legislature in 2015.

"Our nation's veterans have always stepped up for us," Hancock said in the announcement. "VetHUB is Texas's way of stepping up for them, cutting red tape, restoring constitutional integrity, and opening doors for the men and women who wore our nation's uniform. These emergency rules ensure Texas's state contracting is free from gender or race discrimination and keep the program centered on those who earned this support through their service."

Under the new rules, businesses previously certified as HUBs due to race, ethnicity, or sex will no longer qualify unless they meet the new veteran-related criteria. The Comptroller's office said it will move quickly to revoke outdated certifications and issue new VetHUB designations to eligible businesses.

With the changes now in effect, VetHUB will operate as Texas's primary state contracting preference program, shifting its emphasis entirely to service-disabled veterans and marking one of the most significant overhauls to the state's procurement system in years.

Raeylee Barefield

Raeylee Barefield is a Legislative Correspondent based in Austin, Texas, specializing in state government and public policy. With one year of reporting under her belt, she covers legislative developments, committee hearings, and policy debates. She has been cited by Texas Politics and Big Energy for her coverage and analysis of legislative and regulatory issues. Her reporting typically focuses on Public policy, Stare government, environmental policy, and energy regulation. To contact her, please reach out at Raeylee@dnm.news