Texas officials have restructured a long-standing state contracting program for small businesses, a move that significantly narrows eligibility and has prompted debate over economic impact, fairness and process.In early December , Acting Texas Comptroller Kelly Hancock announced that the states Historically Underutilized Business program, known as HUB, has been replaced under emergency rules with a new initiative called Veteran Heroes United in Business, or VetHUB. The revised program is now limited to small businesses owned and operated by veterans with a service-connected disability rating of 20 percent or higher.The emergency rules, which took effect immediately after being sent to the Texas Register, eliminate race- and sex-based eligibility criteria that had been part of the HUB program for more than two decades. According to the Comptrollers office, the changes are intended to bring the program into alignment with the Texas and U.S. constitutions and with legislative guidelines established in 2015 to support service-disabled veterans.Our nations veterans have always stepped up for us, Hancock said in a statement. VetHUB is Texas way of stepping up for them, cutting red tape, restoring constitutional integrity and opening doors for the men and women who wore our nations uniform.Established in 1999 and signed into law by then-Gov. George W. Bush, the HUB program was designed to help economically disadvantaged businesses compete for state contracts. The program did not guarantee contracts or set quotas, but required state agencies to notify certified businesses of procurement opportunities and make good-faith efforts toward participation goals.State officials acknowledge the restructuring significantly reduces the size of the program. According to figures cited by Texas House Democrats, more than 15,700 businesses were previously certified under HUB, while about 485 businesses would remain eligible under the revised VetHUB rules. Lawmakers also noted HUB-certified businesses received more than $4.1 billion in state contracts last year.Under the new rules, businesses previously certified as HUBs based on race, ethnicity or sex no longer qualify unless ownership and control can be demonstrated by a service-disabled veteran. The Comptrollers office said it will revoke outdated certifications and issue new VetHUB certifications to eligible businesses.Democratic lawmakers have criticized both the scope of the changes and the use of emergency rulemaking, arguing the decision should have gone through a broader legislative review. State Rep. Linda Garcia said the restructuring could weaken competition and harm small businesses.This is not only harmful, but its also economically shortsighted, Garcia said in a statement. When we undermine the success of small, diverse businesses, we undermine the strength and competitiveness of our entire state.Hancock previously announced an administrative freeze of the HUB program in October while the agency conducted a legal review.The Comptrollers office says more information about VetHUB, including frequently asked questions for small businesses, is available on its website. State officials encourage business owners with questions or concerns to contact their state or local representatives.More Veterans In Focus stories are available here, along with resources for local veterans. Contact Veterans In Focus reporter Michelle Hofmann at [email protected] ...read more read less