AUSTIN (KXAN) – A memoranda of agreement (MOA) between the Texas Comptroller’s office and the city of Austin ended Thursday, cutting off the city’s ability to certify business under the state’s Historically Underutilized Business (HUB) framework.

“We eliminated race- and sex-based classifications, reduced layers of bureaucracy and placed responsibility for certification within one accountable office. Most importantly, we made service-disabled veterans the focus of this program,” Acting Texas Comptroller Kelly Hancock said in a Thursday press release.

In Dec. 2025, Hancock announced his office would freeze and overhaul the program. Now VetHUB, the program no longer uses qualifications based on sex, race and ethnicity and instead focuses solely on service-disabled veterans.

When the program was frozen due to constitutional concerns, the Comptroller’s office took over certifying business under VetHUB. A 60-day notice of termination was issued after the program ended, according to the Texas Comptroller’s Office press release.

Texas Comptroller removes minority and women-owned businesses from HUB program

The VetHUB program intends to facilitate increased contracts and subcontracts between state agencies and businesses that are majority owned and operated by service-disabled veterans, according to the Texas Comptroller website.

The city of Austin still offers Minority and Women-Owned Business Enterprise (MBE/WBE) certifications, which “provides greater exposure for work opportunities on City of Austin projects,” according to the City of Austin Certification Division.

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