Texas Changes HUB Program To VetHUB, Restricts Eligibility
The Texas Comptroller’s office has substantially revised the state’s Historically Underutilized Business (HUB) program, removing women- and minority-owned firms from eligibility and limiting participation to businesses owned by service-disabled veterans. The interim rule also renames the initiative VetHUB (Veteran Heroes United in Business).
Acting Comptroller Kelly Hancock said the decision responds to constitutional concerns about the original statute, which listed specific races and gender categories under the definition of an “economically disadvantaged person.” That definition — in place since the 1990s — included Black Americans, Hispanic Americans, women, Asian Pacific Americans, Native Americans and service-disabled veterans. Hancock told Nexstar he believes treating people as disadvantaged based on race or gender is discriminatory and violates the Equal Protection Clause.
Legal Background And Agency Response
Hancock implemented the interim rule after stepping into the role following former Comptroller Glenn Hegar’s departure. The move came amid a 2024 lawsuit filed by Aerospace Solutions alleging the HUB program discriminated on the basis of race and violated the Constitution. Hancock also said the Texas Attorney General’s office declined to defend the comptroller’s office in that case, prompting the agency to revise the program rules.
“To assume somebody is economically disadvantaged simply based on race or eliminate people from having this preferential treatment in the procurement process ... that’s just discriminatory and doesn’t abide within the Constitution,” Hancock told Nexstar.
Supporters Say The Change Undermines Opportunity
Supporters of the original HUB program — including State Senator Royce West (D‑Dallas), a co-sponsor of the law in the 1990s — argued the program was intended to help historically underrepresented businesses compete for state contracts, not to offer unearned preference. West said he was disappointed by the rule change and warned the agency may have exceeded its rulemaking authority by effectively altering a statute and renaming a program explicitly created by law.
According to the fiscal year 2025 semi‑annual HUB report, 15,762 companies were registered under the program; more than 15,000 of those firms lost eligibility after the comptroller’s decision. West noted that any of those affected businesses could pursue legal action to challenge the agency’s rulemaking.
Separate Items: Pardon, D.C. Shooting, And Everly’s Law
Trump Pardons Rep. Henry Cuellar And His Wife
Former President Donald Trump issued a full and unconditional pardon to Rep. Henry Cuellar (D‑Texas) and his wife, Imelda. The Cuellars were indicted in March 2024 on 14 counts alleging bribery and money laundering tied to payments from an Azerbaijan government‑owned oil company and a Mexican bank. A federal judge dismissed two counts in August 2024 at prosecutors’ request and set a trial for next year. Cuellar thanked Trump and said he believed the charges were politically motivated.
Washington, D.C., Shooting Prompts Afghan Immigration Pause
Federal officials say the suspect in the fatal shooting of two National Guardsmen in Washington, D.C., is an Afghan national who entered the U.S. as a refugee after working alongside U.S. forces. In response, the administration directed a pause on Afghan immigration cases and said it would prioritize deportations for Afghan nationals with existing removal orders; authorities also announced related arrests in the days that followed.
“The protection and safety of Americans and our homeland will remain our singular focus and mission,” a Department of Homeland Security statement said.
Representative Michael McCaul (R‑Texas), a longtime advocate for Afghan allies, called the attack tragic and warned that an immigration freeze could endanger Afghans who aided U.S. forces. McCaul urged Congress to preserve programs that protect Special Immigrant Visa holders while acknowledging the need to review procedures after the attack.
Texas Enacts Everly’s Law To Support Families After Infant Loss
Texas has passed a new law — named Everly’s Law — requiring hospitals with maternity wards to provide cooling devices (bassinets) so families can preserve a baby’s body for up to 72 hours after stillbirth or infant loss. The law also mandates staff training on bereavement care to ensure grieving families are treated with compassion and not re‑traumatized. Representative Mihaela Plesa (D‑Plano), the bill’s sponsor, said Texas aims to create a national model for neonatal bereavement care.
The Texas Department of State Health Services (DSHS) is planning implementation. While DSHS reported infant deaths had trended downward over the previous four years, early analysis by KXAN indicates a 7.7% increase since 2021, with leading causes listed as birth defects, preterm births and Sudden Infant Death Syndrome (SIDS).
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