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Name
Eddie Bynog Jr.
Phone
5129747600
Release Date

Important Update: State of Texas HUB Certification Process Suspended

AUSTIN, Texas – The Austin Small and Minority Business Resources Department (ASMBR) is notifying local firms of recent changes to the State of Texas’ Historically Underutilized Business (HUB) Program.

Acting Texas Comptroller of Public Accounts Kelly Hancock has announced a temporary freeze on the issuance and renewal of HUB certifications for state procurement. The suspension allows time for a legal and administrative review to confirm that the program’s procedures and rules comply with constitutional requirements.

Reason for Suspension

According to the Comptroller’s Office, the decision—announced Tuesday, October 28—is intended to align the HUB Program with the U.S. Constitution, the Texas Constitution, and Gov. Greg Abbott’s Executive Order GA-55, which prohibits race- and sex-based preferences in awarding government benefits. The review follows recent court rulings related to the constitutionality of diversity, equity, and inclusion (DEI) initiatives.

The Comptroller’s Office stated that existing contracts, reporting requirements, and the ability of currently certified firms to compete for state contracts will not be affected by this suspension.

Impact on City of Austin Certifications

This suspension applies only to state-level HUB certifications and does not impact the City of Austin’s Minority-Owned and Women-Owned Business Enterprise (MBE/WBE) Procurement Program, which remains active. Austin’s MBE/WBE Program continues to advance contracting opportunities, provide supportive services, and host business development workshops for certified local firms.

Guidance for HUB-Certified Firms

Firms with current HUB certifications may continue to perform on existing contracts and pursue new opportunities with the State of Texas. Businesses with questions related to their HUB certification should contact the State Comptroller’s Office at https://comptroller.texas.gov/about/contact/.

ASMBR will continue to monitor developments and share updates when the State issues further guidance.

For updates on the State’s review, visit the Texas Comptroller’s Media Center.
For information about City of Austin certifications and resources, visit austintexas.gov/smbr or email smbr@austintexas.gov.