Acting Texas Comptroller Kelly Hancock has announced the expiration of all regional Memoranda of Agreements (MOAs) related to the state’s former Historically Underutilized Business (HUB) program. The decision follows a restructuring effort that replaced the HUB program with Veteran Heroes United in Business (VetHUB).
In December, Hancock issued 60-day termination notices for these agreements as part of changes aimed at refocusing the program. “Texas has ended DEI-based preferences in state contracting and replaced them with a program that is fair, focused and constitutional,” Hancock said. “We eliminated race- and sex-based classifications, reduced layers of bureaucracy and placed responsibility for certification within one accountable office. Most importantly, we made service-disabled veterans the focus of this program.”
Previously, the Comptroller’s office relied on outside organizations to help certify businesses based on race-, ethnicity-, and sex-based categories. The restructuring removed those classifications to comply with constitutional equal-protection standards. Since emergency rules were put in place last fall, all certifications have been managed directly by the agency.
The MOAs that expired include agreements with entities such as the City of Austin, City of Houston, El Paso Chamber of Commerce, Houston Minority Supplier Development Council, South Central Texas Regional Certification Agency, Tri-County Regional Black Chamber of Commerce, Women’s Business Council Southwest, Golden Triangle Minority Business Council, Southwest Minority Supplier Development Council, and Dallas/Fort Worth Minority Supplier Development Council.
Under VetHUB’s revised guidelines, service-disabled veterans are now exclusively eligible for certification through this state program. At its relaunch, 547 businesses held HUB certification solely under service-disabled veteran status; currently there are 1,075 active VetHUB-certified businesses — reportedly the highest number in the history of this status category.
According to officials from the Comptroller’s office, ending these regional MOAs finalizes efforts to streamline business certification by removing redundant administrative procedures and establishing a single statewide system administered by their agency. For questions about eligibility or current certification status under VetHUB, business owners can contact VetHUBProgram@cpa.texas.gov.
