Austin, Texas, December 4, 2025
The Texas Comptroller’s office has restructured the Historically Underutilized Business program to create the VetHUB program, focused on supporting businesses owned by service-disabled veterans. This initiative aims to enhance government contracting opportunities for veterans with a service-connected disability rating of 20% or higher while responding to federal and state compliance requirements. Although some businesses may face revocation of previous certifications, the program aims to foster economic growth and innovation among veteran entrepreneurs.
Texas Launches New VetHUB Program, Supporting Veteran Entrepreneurs
Comptroller’s office pivots focus to service-disabled veterans in state contracting
Austin, Texas – A significant restructuring of the Historically Underutilized Business (HUB) program has been announced by the Texas Comptroller’s office, which now establishes the Veteran Heroes United in Business (VetHUB) program. This new initiative focuses specifically on businesses owned by disabled veterans with a service-connected disability rating of 20% or higher. The change is designed to streamline government contracting opportunities for these valued entrepreneurs, affirming Texas’s commitment to supporting those who have served in the armed forces.
The original HUB program aimed to increase participation in state contracting for minority- and women-owned businesses, although it did not implement strict quotas. Following a review prompted by compliance with executive orders from the federal and state levels, the focus has now shifted exclusively to service-disabled veterans. This decision has been framed as a move to enhance support for veterans while ensuring fairness in government contracting.
Revocation of Previous Certifications
Under the new VetHUB program, businesses previously certified under the HUB program based on criteria such as race, ethnicity, or gender will have their certifications revoked and removed from the HUB vendor directory. Contracts initiated before this change will remain unaffected, providing a sense of continuity for existing partnerships. The Comptroller’s office has informed these businesses directly, providing clarity during this transition process.
Supporting Veteran Entrepreneurs
The focus on service-disabled veterans serves multiple purposes. It not only acknowledges their sacrifice and commitment but also creates a more streamlined process for veterans seeking to engage in state contracting. The initiative reduces administrative burdens, allowing veterans to navigate the contracting landscape with less red tape—something that can be crucial for small businesses looking to capitalize on government opportunities.
Community and Economic Impact
While supporters herald the restructuring as a fair approach to contracting that prioritizes service, critics argue that this move may detract from opportunities for minority- and women-owned businesses. A lawsuit has been filed by a company challenging the changes, citing concerns over potential discrimination. This ongoing legal matter underscores the complexity of balancing various business interests within a diverse economic landscape.
Despite the contention, the VetHUB program is expected to contribute positively to Texas’s economy by promoting entrepreneurial innovation among veterans. By removing barriers for this demographic, the program aims to stimulate economic growth and job creation, essential components of a thriving business ecosystem.
Going Forward
The Texas Comptroller’s office is committed to aiding affected businesses during this transition, offering resources to navigate the new requirements effectively. For veteran entrepreneurs, this could signal a new era of opportunity in participating in state contracting—an avenue that may have been previously inaccessible due to various barriers.
As Texas continues to evolve its approach to supporting businesses, the focus on veteran-owned enterprises might provide a model for balancing competitive fairness with targeted support. Stakeholders across all demographics will likely be watching closely to assess the outcomes of these significant changes in the VetHUB program.
Frequently Asked Questions (FAQ)
What is the VetHUB program?
The VetHUB program, formerly known as the Historically Underutilized Business (HUB) program, is a state initiative focusing exclusively on businesses owned by disabled veterans with a 20% or higher service-connected disability. It aims to provide these veterans with increased opportunities in state contracting.
Why was the HUB program restructured?
The restructuring was implemented to ensure compliance with executive orders from President Donald Trump and Governor Greg Abbott, which prohibit race- and sex-based preferences in government benefits. The review led to the decision to refocus the program on service-disabled veterans.
How does this change affect existing contracts?
State contracts initiated before the announcement will remain unaffected by the new rules. The restructuring does not impact existing contracts.
What should affected businesses do now?
Affected businesses have been notified of the revocation of their certifications and their removal from the HUB vendor directory. They are encouraged to visit the Texas Comptroller’s official website for information on the new VetHUB program and its eligibility criteria.
Is there any support available for businesses during this transition?
The Comptroller’s office has committed to assisting affected businesses during this transition and has provided resources to help them understand the new program’s requirements.
Where can I find more information about the VetHUB program?
For more information on the VetHUB program and its eligibility criteria, businesses can visit the Texas Comptroller’s official website.
Key Features of the VetHUB Program
| Feature | Description |
|---|---|
| Eligibility | Businesses owned by disabled veterans with a 20% or higher service-connected disability. |
| Program Focus | Providing increased opportunities in state contracting for eligible veterans. |
| Certification | Businesses must demonstrate ownership and control by a service-disabled veteran to qualify. |
| Impact on Existing Contracts | State contracts initiated before the announcement remain unaffected by the new rules. |
| Support for Affected Businesses | The Comptroller’s office has committed to assisting affected businesses during this transition and has provided resources to help them understand the new program’s requirements. |
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