State & Local News
Texas Businesses Sue Comptroller over VetHUB Rule
March 11, 2026
Four minority- and women-owned small businesses along with a minority contractor trade association have filed a lawsuit against Kelly Hancock, Acting Texas Comptroller of Public Accounts, challenging the emergency rule that replaced the Historically Underutilized Business (HUB) Program with the veteran-only VetHUB program. This rule change decertified over 15,000 minority- and women-owned businesses, raising significant legal and contracting implications for these businesses and state agencies. The plaintiffs seek to void the emergency rule, reinstate HUB certifications, and require state agencies to adhere to statutory HUB contracting requirements.
- Why this matters: Procurement professionals and contractors should be aware of potential legal and regulatory shifts affecting minority- and women-owned business participation in Texas state contracts.
- The lawsuit highlights risks of programmatic changes that may impact supplier diversity and certification status, which could affect contract eligibility and sourcing decisions.
- State agencies may face compliance challenges depending on the lawsuit's outcome, influencing procurement planning and vendor outreach.
- Businesses currently decertified under VetHUB should evaluate their status and consider legal or advocacy options to protect contracting opportunities.
VetHUB would "ensure Texas state contracting is free from gender or race discrimination" and simplify processes for disabled veterans.
— Kelly Hancock, Acting Texas Comptroller of Public Accounts
Agencies
Texas Comptroller of Public Accounts, Texas Department of Transportation, Texas Health and Human Services Commission, Texas Facilities Commission