The Austin Small and Minority Business Resources Department (ASMBR) has issued a formal notice regarding a temporary suspension of the State of Texas’ Historically Underutilized Business (HUB) Program. Acting Texas Comptroller Kelly Hancock announced the freeze on October 28, citing the need for a legal and administrative review to ensure the program aligns with constitutional standards.
🔍 Why the Suspension Was Issued
The review is intended to bring HUB Program procedures into compliance with:
- The U.S. Constitution
- The Texas Constitution
- Executive Order GA-55, which prohibits race- and sex-based preferences in awarding government benefits
This action follows recent court rulings that have challenged the legality of diversity, equity, and inclusion (DEI) initiatives.
✅ What Remains Unchanged
- Firms currently certified under the HUB Program may continue to perform on existing contracts.
- These firms remain eligible to compete for new state contracts.
- Reporting requirements and contract obligations are unaffected.
🏛️ City of Austin Programs Continue
The suspension applies only to state-level HUB certifications. The City of Austin’s Minority-Owned and Women-Owned Business Enterprise (MBE/WBE) Procurement Program remains fully operational. Local firms can still access:
- Certification support
- Business development workshops
- Contracting opportunities
📬 Resources and Contacts
- For questions about HUB certification status, firms should contact the Texas Comptroller’s Office.
- For updates on the review process, visit the Texas Comptroller’s Media Center.
- For City of Austin certification details, visit austintexas.gov/smbr or email smbr@austintexas.gov.
KNCT 