The Texas Comptroller’s Office has completed the final step in its overhaul of the state’s Historically Underutilized Business (HUB) program, formally ending all regional certification agreements as the newly created Veteran Heroes United in Business (VetHUB) takes full effect.
Texas Comptroller Kelly Hancock announces this week that all regional memoranda of agreement tied to the former HUB program have expired following a 60-day termination notice issued to entities in December. The agreements had allowed outside entities, including city governments, chambers of commerce and minority business councils, to assist with certifying businesses under race-, ethnicity- and sex-based eligibility categories.
The announcement marks the final implementation of the state’s efforts to eliminate Diversity, Equity and Inclusion from the government procurement process. It also builds on the agency’s earlier emergency rulemaking that reshaped the HUB program into VetHUB, narrowing eligibility to service-disabled veterans with at least a 20% service-connected disability rating. The change followed an administrative freeze of HUB operations in October and a legal review aimed at aligning state procurement policies with federal and constitutional equal protection standards.
Under the previous structure, businesses could qualify based on minority- or women-owned status. Those certifications are being revoked unless the business owner meets the new veteran eligibility criteria. Contracts executed before the rule changes remain unaffected, according to the comptroller’s office.
Since the relaunch, state officials note that the amount of certified businesses rose from 547 to 1,075 veteran-owned businesses. The momentum marks the highest number of service-disabled veteran participants in the program’s history.
Interested entities may get involved with VetHUB through the comptroller’s office, which is responsible for administering certifications statewide.
Photo by Andrew Patrick Photo from Pexels
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