Judge Blocks Changes to Texas' Historically Underutilized Business Program

Temporary injunction affects only the six businesses that filed suit against the state.

Apr. 13, 2026 at 10:53pm

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A serene, photorealistic painting of an empty government office desk illuminated by warm, directional sunlight, conveying a sense of quiet contemplation and uncertainty about the future of the HUB program.The temporary court order restoring the HUB program's previous eligibility rules offers a glimmer of hope for minority- and female-owned businesses seeking a more equitable playing field in the state's procurement process.Austin Today

A Travis County district court judge granted a temporary injunction to block the latest rule changes to Texas' Historically Underutilized Business (HUB) program. The injunction only applies to the six businesses that filed suit against the state after the Texas Comptroller's office drastically overhauled the decades-old program late last year.

Why it matters

The HUB program was designed to make the state procurement process more equitable for minority- and female-owned businesses. The recent changes by the Comptroller's office removed all categories of 'economically disadvantaged' groups except for service-disabled veterans, which the plaintiffs argue is discriminatory and unconstitutional.

The details

The plaintiffs in the case argue that the Comptroller overstepped its executive authority in changing state statute and financially harmed more than 15,000 businesses in the state. The Texas Attorney General's office is defending the Comptroller's actions, claiming the HUB program violated both state and federal constitutions.

  • The HUB program was enacted by the Texas legislature in the 1990s.
  • In December 2025, Hancock issued emergency rules that removed all categories of 'economically disadvantaged' groups except for service-disabled veterans from the HUB program.
  • On April 13, 2026, a Travis County district court judge granted a temporary injunction to block the changes to the HUB program.

The players

Texas Comptroller of Public Accounts

The state agency that oversees the Historically Underutilized Business (HUB) program and issued the rule changes in December 2025.

Kelly Hancock

The acting Comptroller of Public Accounts who issued the emergency rules changing the HUB program.

Texas Attorney General's Office

The state agency defending the Comptroller's actions in court, arguing the HUB program violated state and federal constitutions.

Group of female-owned and minority-owned businesses

The plaintiffs who sued the Comptroller's office over the changes to the HUB program.

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What’s next

The temporary injunction only affects the six businesses that filed suit against the state. The Comptroller's office has not indicated how it will proceed with the broader HUB program changes.

The takeaway

This case highlights the ongoing debate over affirmative action programs and whether they violate constitutional principles of equal protection. The outcome could have significant implications for minority- and female-owned businesses seeking state contracts in Texas.