Texas Democrats urge Comptroller to reinstate HUB certification process

Editor’s note: The above video is from previous coverage that aired on Oct. 28, 2025.

AUSTIN (Nexstar) — The full coalition of Texas Democratic state senators sent a letter to the Comptroller’s office urging it to reinstate the certification process of the Historically Underutilized Business (HUB) program, which was recently suspended. The senators argued that the interim Comptroller, Kelly Hancock, exceeded his scope of authority.

Hancock sent guidance to agencies last week that his office was in the process of revising its administration of the HUB program to make sure it complied with both the U.S. and Texas constitutions. He also cited Gov. Greg Abbott’s executive order issued earlier this year that directed state agencies to ban Diversity, Equity, and Inclusion policies.

The Comptroller’s office also removed information about the HUB program from its website.

The HUB program was created in the 1990s to give minority and women-owned businesses more exposure in the process of bidding for government contracts. The program was codified by the state legislature in 1999 and required the Comptroller’s office to certify businesses in the HUB program.

State agencies are required to solicit bids from HUB-certified businesses on certain government contracts. A HUB business must be at least 51% owned by women, minorities, or service-disabled veterans.

“Businesses deserve a level playing field where government contracts are earned by performance and best value — not race or sex quotas,” Hancock wrote on his X account after suspending new certifications.

“While we support the principle of equal treatment under the law, your decision to suspend new
HUB certifications raises serious legal and constitutional concerns,” the letter from Democratic senators read. It was signed by all 11 Democrats in the Texas Senate.

The group of senators laid out a list of arguments as to why they believe the Comptroller’s office is breaking state law.

The first argument laid out in the letter is that the Comptroller is legally bound to certify new HUB businesses because it is written out in the Texas Government Code. The senators said the program is mandatory, not discretionary. They also argued that the governor’s executive orders do not supersede statutory law.

The letter goes on to say that Hancock has misrepresented the HUB program in recent statements he made on his social media account. “This action today reflects that commitment and reinforces Texas’ longstanding principles of fairness and accountability,” Hancock wrote on a string of posts last week.

The senators’ letter contradicted the claim that HUB-certified businesses are given preferential treatment in the state procurement process.

“Agencies are required only to make a good faith effort to ensure certified HUBs have an opportunity to bid. State law does not establish mandatory quotas or set asides for agencies, and certification does not confer additional points or weights to HUBs during the bidding process,” the letter said.

The letter said HUBs earned $4.1 billion in contracts in fiscal year 2024, which accounted for 11.2% of all state contracts. The letter breaks down that 11% even further:

• Women-owned: 3.4%
• Veteran-owned: 2.1%
• Hispanic-owned: 3.8%
• African American-owned: 1.9%
• Asian American-owned: 1.5%

Nexstar reached out to the Comptroller’s office to ask if Hancock had any response to the claims made in the letter. We are waiting for a response and will update this story when we learn more.