# Texas Overhauls State HUB Procurement Program

Texas replaced its Historically Underutilized Business (HUB) program with VetHUB in late 2025, restricting eligibility to service-disabled veteran-owned businesses. This significant policy shift excludes many minority- and woman-owned businesses from state procurement opportunities, prompting legal challenges and legislative debate over the program's fairness and constitutionality. Procurement professionals and contractors working with Texas state agencies should assess the impact on subcontracting and bidding strategies, especially given ongoing legal developments and potential legislative responses.

- The Texas Comptroller of Public Accounts now administers VetHUB, emphasizing support for service-disabled veteran-owned businesses and aiming to reduce administrative complexity.
- Minority- and woman-owned businesses previously eligible under HUB face reduced access, affecting subcontracting pipelines and competitive dynamics in Texas state contracts.
- Legal challenges and legislative discussions may lead to further changes; procurement professionals should stay informed to adjust compliance and business development plans.
- Companies should evaluate opportunities to partner with or become certified as service-disabled veteran-owned businesses to leverage VetHUB benefits.

**Jurisdictions:** sled
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 17, 2026

### Government Entities
- Texas Comptroller of Public Accounts
- Texas Legislature
- Bexar County Small Business and Entrepreneurship Department
- Harris County

### Vendors
- Genesis Cabling Solutions (woman-owned business, contractor)
- Ipsum General Contractors (minority-owned business, contractor)

### Key Quotes
> "This is not a DEI program. It’s a good faith program to make sure that all businesses, female and male, get an opportunity to participate in the procurement process."
> — Royce West, State Senator, Texas Legislature

> "In order to have a defensible HUB program, you need to do a disparity study every six years. The fact that we haven’t done a disparity study at the state level since 2016 indicates to me that the current folks in charge, who’ve been in charge for 30 years, really don’t want to document just how bad it is."
> — Sarah Eckhardt, State Senator, Texas Legislature

> "VetHUB is Texas’ way of stepping up for them 	6 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’ state contracting is free from gender or race discrimination and keep the program centered on those who earned this support through their service."
> — Kelly Hancock, Acting Comptroller, Texas Comptroller of Public Accounts

### Sources
- [Texas HUB program overhaul reshapes state procurement process](https://www.kxan.com/investigations/whats-next-for-texas-historically-underutilized-business-program) - kxan.com