Harris County Joins Legal Fight to Restore Texas HUB Program

More than 15,000 Texas businesses lost their state contracting certifications under emergency rules issued by interim Comptroller Kelly Hancock, leaving roughly 500 certified participants in the state's Historically Underutilized Business program and putting millions of dollars in procurement contracts at risk. Harris County filed an amicus brief this week urging a court to reverse those changes, with Commissioner Rodney Ellis leading the county's intervention in the case Ipsum General Contractors, LLC, et al. v. Kelly Hancock, et al.

The county's stake is concrete. Since launching its own Minority- and Women-Owned Business Enterprise program in 2020 after a comprehensive disparity study, Harris County has more than doubled its spending with certified businesses and set an aspirational goal of directing 30 percent of contract dollars to MWBEs. That program relies on state HUB certification as its cornerstone, meaning Hancock's emergency action effectively undercuts the county's own procurement framework and the hiring pipelines that flow from those contract awards.

Plaintiffs in the underlying lawsuit, filed March 2, 2026, include four minority- and women-owned Texas small businesses and a minority contractor trade association, with Ipsum General Contractors, LLC listed as the lead plaintiff. They allege the emergency rulemaking dismantled the HUB program without legal authority, decertifying more than 15,000 businesses owned by economically disadvantaged individuals. The roughly 500 HUBs left standing, the plaintiffs allege, are all owned by White men.

County officials say the state's changes "disrupt local procurement, narrow the pool of qualified bidders, and threaten businesses that have built operations around HUB certification." The Harris County Attorney's Office has framed the legal fight as a protection for local economies, with the county asking the court to maintain the program as originally enacted.

The legal challenge runs on multiple fronts. Plaintiffs contend Hancock bypassed the Texas Administrative Procedure Act's mandatory 30-day notice-and-comment requirement, violated due process and equal protection protections, and exceeded his authority under the Texas Constitution's separation-of-powers framework. They also point to the 2025 Texas Legislature's explicit rejection of a bill that would have narrowed HUB eligibility to businesses owned by disabled veterans, arguing that vote signals the comptroller's policy shift lacks legislative backing.

The HUB program was signed into law in 1999 by then-Governor George W. Bush to address documented discrimination in state contracting. It offers free certification, education and training, technical assistance, mentorship, and access to a statewide directory. The program sets aspirational goals rather than mandates, and certified businesses must still compete for contracts on merit.

The pipeline consequences extend well beyond current certifications. If the program is not restored, new HUB certifications will not be issued and expiring ones will not be renewed, cutting off the flow of certified vendors that Harris County and state agencies rely on to meet minority contracting benchmarks. Businesses pursuing state contracts worth at least $100,000 must still comply with HUB subcontracting plan requirements and make good-faith efforts, even as the certification system itself remains in legal limbo.