The Austin Small and Minority Business Resources Department (ASMBR) has informed local businesses about a temporary halt in the State of Texas’ Historically Underutilized Business (HUB) certification process. The suspension was announced by Acting Texas Comptroller of Public Accounts Kelly Hancock, who stated that no new HUB certifications or renewals will be processed while a legal and administrative review is conducted.
The review aims to ensure that the program’s procedures comply with both state and federal constitutional requirements, as well as Governor Greg Abbott’s Executive Order GA-55. This order prohibits preferences based on race or sex when awarding government benefits. The decision follows recent court rulings concerning diversity, equity, and inclusion initiatives.
Despite the freeze, existing contracts and reporting requirements remain unchanged. Firms already certified under the HUB program can still compete for state contracts during this period.
The City of Austin clarified that its own Minority-Owned and Women-Owned Business Enterprise (MBE/WBE) Procurement Program is not affected by the state-level suspension. This city program continues to offer contracting opportunities, supportive services, and business development workshops for certified firms.
Firms holding current HUB certifications may continue working on their existing contracts with the state and seek new opportunities. Businesses seeking clarification regarding their certification status are encouraged to contact the State Comptroller’s Office at https://comptroller.texas.gov/about/contact/.
ASMBR stated it will keep monitoring developments related to the HUB Program review and provide updates when more information becomes available.
Further updates from the Texas Comptroller can be found through their Media Center. Information about City of Austin certifications remains available at austintexas.gov/smbr or via email at smbr@austintexas.gov.
