December 3, 2025

The Greater Houston LGBTQ+ Chamber of Commerce expresses deep concern regarding the State of Texas’ decision to eliminate the existing Historically Underutilized Business (HUB) certification program and replace it with a narrowly defined program, Veteran Heroes United in Business (VetHUB), under emergency rules announced by the Comptroller’s Office.

The previous HUB framework served as a long-standing and effective tool designed to expand access to public procurement opportunities for small, minority-owned, women-owned, veteran-owned, and other historically underrepresented businesses. For many Texas entrepreneurs, HUB certification is not symbolic—it has been a critical economic gateway that enabled fair competition in state contracting, supported early-stage business growth, and strengthened local job creation.

Under the newly announced emergency rules, only small businesses owned and operated by service-disabled veterans (with 20% or greater disability) will qualify for state contracting certification. Certifications based on race, ethnicity, or sex are being revoked, effectively removing a major access pathway for thousands of historically underrepresented business owners in Texas who have faced persistent disparities in public contracting.

At a time when small business formation and entrepreneurship are driving Texas’ economic growth, eliminating the prior HUB program and restricting eligibility to a single category of historically underrepresented businesses introduces significant disruption to the procurement market, reduces competition, and risks widening existing economic disparities. This change creates an uneven playing field where many historically disadvantaged businesses must now navigate state contracting without any clear, reliable pathway to participate.

While the state has clarified that businesses may continue competing for contracts through vendor registration on the Centralized Master Bidder’s List (CMBL), the absence of an inclusive certification process undermines transparency, consistency, and equitable access—values that are fundamental to a stable and competitive procurement ecosystem.

“We cannot build a strong Texas economy by eliminating tools that level the playing field. Restricting certification to a narrow subset of businesses, while revoking pathways for others who have been historically excluded from public contracting, undermines transparency, limits competition, and restricts the ability of small businesses to participate in state procurement. Our state’s economic strength depends on expanding access, not narrowing it.” — Tammi Wallace, Co-Founder, President & CEO, Greater Houston LGBTQ+ Chamber of Commerce

The Chamber remains committed to advancing an inclusive economic environment in which LGBTQ+-owned businesses, and all underrepresented entrepreneurs, can thrive and contribute fully to the prosperity of our state. We support increased opportunity for service-disabled veteran-owned small businesses; however, equity is not achieved by eliminating access for other historically marginalized business owners—it is achieved by expanding pathways for all. Strong, competitive markets are built by removing barriers—not reinforcing them. We are actively meeting with local elected leaders, partner chambers, and business organizations to advocate for transparency, equitable access, and solutions that protect the full spectrum of small businesses across Texas.

We will continue to monitor developments closely, provide resources to affected businesses, and work collectively toward policies that promote open, equitable, and competitive economic participation across our state.