On December 2, 2025, the Texas Comptroller’s Office announced sweeping changes to the long-standing Historically Underutilized Business (HUB) program. Under emergency rules, the program will be rebranded as Veteran Heroes United in Business (VetHUB) and restructured to serve only small businesses owned and operated by veterans with a service-connected disability of 20% or more.
A New Focus: Service-Disabled Veterans
According to the official announcement, the shift aims to bring the program in line with constitutional principles by removing race- and sex-based preferences. Only veterans meeting the disability threshold will qualify — effectively ruling out businesses previously certified as HUBs due to race, ethnicity, or gender, unless they meet the new veteran-specific criteria.
Existing contracts will NOT be affected.
The original HUB program was established by state law, not by administrative rule. Changing the target demographic from minorities and women to disabled veterans via emergency regulation may raise legal and legislative concerns.
With these emergency rules effective immediately, many businesses may consider reevaluating how they approach bidding on state contracts. Need help with these new emergency rules? Contact us for a consultation.
