Texas HUB Program Overhauled and Replaced with VetHUB

For more than three decades, the Texas Historically Underutilized Business (TexasHUB) program stood as a hallmark initiative in the State of Texas, promoting increased access to public-sector procurement opportunities for businesses owned by women, racial and ethnic minorities, and service-disabled veterans. Established under state law in the late 1990s, the program encouraged state agencies to utilize HUB-certified vendors in procurement, creating visibility and competition for diverse suppliers.

However, as of early December 2025, the program underwent a significant restructuring that has fundamentally changed its scope and eligibility criteria. The State of Texas no longer recognizes the TexasHUB certification in its traditional form. The long-standing program has been formally restructured and replaced with a new program called VetHUB, Veteran Heroes United in Business.

The original Texas Historically Underutilized Business (HUB) Program was created to expand contracting access for businesses owned by women, racial and ethnic minorities, and service-disabled veterans. For decades, it served as a primary supplier-diversity mechanism across Texas state agencies. Prior to the restructuring, more than 15,000 businesses were actively registered as HUB-certified vendors statewide, making it one of the largest state supplier-diversity programs in the country. Under the new VetHUB program, approximately 97% of the originally certified no longer qualify for the restructured program according to the Texas Tribune.

From HUB to VetHUB

In December 2025, the Texas Comptroller of Public Accounts implemented emergency administrative rules that eliminated race- and gender-based eligibility from the HUB program. In its place, the state launched the VetHUB Program, a redefined certification focused exclusively on small businesses owned and controlled by service-disabled veterans with at least a 20 percent service-connected disability.

The Comptroller cited constitutional compliance and alignment with state policy directives as the rationale for the change. This restructuring followed an October 2025 freeze on new and renewal HUB certifications while the program underwent legal and policy review.

Impact on Previously Certified Businesses

The transition had immediate and wide-ranging effects. Businesses that were previously HUB-certified based on minority or women ownership lost their certification status unless they also qualified under the new veteran-only criteria. While existing contracts were not invalidated, future access to HUB-related procurement opportunities changed substantially.

As of early 2026, fewer than 500 businesses are registered under the new VetHUB program, a dramatic reduction from the more than 15,000 firms previously recognized under the traditional HUB framework. The new program not only narrows eligibility but also changes how supplier participation is measured and reported across state agencies.

What This Means for Texas Small Businesses

For non-veteran firms, HUB certification is no longer a viable pathway into Texas state procurement. Instead, businesses must increase their strength in:

• Technical qualifications and past performance

• Pricing and delivery capability

• Relationships with prime contractors

• Subcontracting and teaming opportunities outside of HUB-specific goals

  
  

For veteran-owned firms that meet the criteria, VetHUB certification now serves as the state’s primary designation for targeted supplier inclusion.

For support navigating certification changes and enhancing contracting strategies, visit www.aventienterprises.com to schedule a call.