**AUSTIN, TEXAS — **Texas House Democrats are condemning Acting Comptroller Kelly Hancock’s move to strip 15,000 women- and minority-owned businesses of their certification from the state’s Historically Underutilized Business (HUB) program that has helped level the playing field for Texas entrepreneurs for over 25 years.
Using emergency rules that bypass regular legislative process and authority, Hancock revoked certifications for businesses owned by women, Black, Hispanic, Asian-Pacific, and Native American Texans. Of the 15,762 businesses previously certified, only 485 disabled veteran-owned businesses will remain eligible under the renamed and newly-gutted “VetHUB” program.
The HUB program, signed into law by then-Governor George W. Bush in 1999, was designed to give economically-disadvantaged business owners a level playing field when competing for state contracts. The program never guaranteed contracts or set quotas, instead simply requiring state agencies to notify HUB-certified businesses about procurement opportunities and make good-faith efforts toward participation goals. Last year alone, HUB businesses earned 4.1 billion in state contracts.
Texas House Democratic Leader Rep. Gene Wu (D-Houston): “Kelly Hancock just slammed the door on the American Dream for more than 15,000 Texas small business owners. Republicans are quick to talk about supporting small business, but when those businesses are owned by women and minorities, suddenly they are ready to rip away access and state certifications at a moment’s notice. The only people who will benefit from this backwards decision are the mega-corporations that will now face even less competition for state contracts.”
Texas House Democratic Caucus 2nd Vice Chair Ron Reynolds (D-Missouri City): “For decades, the HUB program has been a lifeline for minority entrepreneurs who’ve faced barriers to economic opportunity. These businesses have the experience and demonstrated ability to satisfy the requirements of state contracts, but for no reason but their own racism, Greg Abbott and the Comptroller have essentially pulled the ladder up behind the established players and told minority business owners they’re on their own.
“This fits the pattern we’ve seen for years. Republicans drew maps to silence Black and Brown voters. They passed laws to make it harder for us to vote. And now, they’re cutting off our economic opportunity. They don’t want to see us at the polls, they don’t want us in the seats of power, and they don’t want us competing for state contracts — Governor Abbott’s message couldn’t be clearer.”
Representative Linda Garcia (D-Mesquite): “Texas minority- and woman-owned businesses don’t need more barriers; they need a fair shot. As an entrepreneur and small business owner, I know how hard Texans work to build something that supports their families and contributes to our economy. The Comptroller’s decision to dismantle the HUB program takes critical certifications away from more than 15,000 businesses and threatens their ability to compete. This is not only harmful, but it’s also economically shortsighted. When we undermine the success of small, diverse businesses, we undermine the strength and competitiveness of our entire state.”
Texas House Democrats join their Senate colleagues in demanding that Governor Abbott and Comptroller Hancock reverse this decision and restore the HUB program to its full statutory scope.