Austin, Texas, December 3, 2025
The Texas Comptroller’s office has restructured the Historically Underutilized Business (HUB) program into the Veteran Heroes United in Business (VetHUB) program, focusing on supporting businesses owned by veterans with service-connected disabilities. This significant change aims to streamline the government contracting process and boost economic activity among service-disabled veterans while revoking previous certifications based on race and gender. Key impacts include expedited processes for veterans and a commitment to merit-based contracting practices.
Texas Revamps HUB Program to Support Disabled Veteran-Owned Businesses
New VetHUB Program Aims to Streamline Contracting for Service-Disabled Veterans
Austin, Texas – The Texas Comptroller’s office has announced a significant restructuring of the Historically Underutilized Business (HUB) program. The newly launched Veteran Heroes United in Business (VetHUB) program will now focus exclusively on supporting businesses owned by veterans with a 20% or higher service-connected disability. This change is part of a broader initiative to align government contracting with legal standards that discourage race- and sex-based preferences.
This restructuring underscores the dedication of Texas’s entrepreneurial community to adapt and thrive under evolving regulatory frameworks. By funneling resources specifically to service-disabled veterans, the state aims to not only honor those who served but also stimulate a new wave of economic activity driven by this resilient group of business owners.
Key Transformations in the HUB Program
Under the new emergency regulations, businesses previously certified under the HUB program for reasons of race, ethnicity, or gender will see their certifications revoked. The Comptroller’s office has taken steps to inform affected businesses and remove them from the HUB vendor directory. By concentrating efforts on a specific demographic, the VetHUB program intends to reduce administrative complexities and expedite the contracting process for service-disabled veterans.
Legal Context and Compliance
This shift follows a review initiated on October 28, 2025, which led to a suspension of new and renewed HUB certifications pending evaluation of compliance with federal and state regulations surrounding diversity, equity, and inclusion initiatives in government. The changes implemented through the VetHUB program align with a legal imperative to prioritize merit-based contracting practices.
The Impact on Local Programs
It’s important to note that these changes at the state level do not directly affect local initiatives, such as the City of Houston’s Minority and Women-Owned Business Enterprise (MWSBE) program. This local program operates independently and remains committed to supporting minority and women-owned businesses, thereby allowing for a diverse array of resources available to various entrepreneurial groups.
Next Steps for Implementation
While the VetHUB program is effective immediately, the Comptroller’s office has yet to release detailed operational guidelines. Stakeholders in the veteran business community are advised to stay informed for updates on program processes and potential opportunities that may arise from this new focus on service-disabled veteran entrepreneurs.
Conclusion
The introduction of the VetHUB program illustrates Texas’s commitment to fostering entrepreneurship among service-disabled veterans while maintaining structural integrity in government contracting. As the Bexar County economy and local businesses continue to adapt to these changes, it is vital for all stakeholders to remain engaged and supportive of each other. By focusing on empowering our veterans in business, Texas can cultivate a stronger economy rooted in innovation and resilience.
Frequently Asked Questions (FAQ)
What is the VetHUB program?
The VetHUB program is a restructured version of the Historically Underutilized Business (HUB) program, now focusing exclusively on businesses owned by veterans with a 20% or higher service-connected disability. It aims to streamline state contracting processes by assisting service-disabled veteran-owned businesses.
How does this change affect businesses previously certified under the HUB program?
Businesses previously certified under the HUB program based on race, ethnicity, or gender will have their certifications revoked and be removed from the HUB vendor directory. This change aligns the program with recent legal and executive directives prohibiting race- and sex-based preferences in government contracting.
Does this restructuring impact local programs like the City of Houston’s MWSBE program?
No, the state-level changes do not directly impact local programs. For example, the City of Houston’s Minority and Women-Owned Business Enterprise (MWSBE) program remains separate and unaffected by these state-level modifications.
What prompted the restructuring of the HUB program?
The restructuring follows the suspension of new and renewed HUB certifications announced on October 28, 2025, as part of a broader review to ensure compliance with federal and state directives against diversity, equity, and inclusion initiatives in government.
When will the VetHUB program be fully implemented?
The Comptroller’s office has not yet provided further details on the implementation of the VetHUB program or its specific operational guidelines.
| Feature | Description |
|---|---|
| Focus | Businesses owned by veterans with a 20% or higher service-connected disability |
| Certification Revocation | Revocation of certifications for businesses based on race, ethnicity, or gender |
| Program Name | Veteran Heroes United in Business (VetHUB) |
| Implementation Date | Effective immediately upon announcement on December 2, 2025 |
| Impact on Local Programs | No direct impact on local programs like the City of Houston’s MWSBE program |
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