Texas Judge Blocks Changes To HUB Program, Citing Executive Overreach

A Texas judge has temporarily blocked sweeping changes to the state’s Historically Underutilized Business (HUB) program, delivering an early legal victory to a coalition of minority-owned businesses and civil rights advocates who argued the move threatened both economic opportunity and the balance of power in state government.

In an order issued Monday, Judge Amy Clark Meachum of the Travis County District Court granted a temporary injunction against Texas Comptroller Kelly Hancock, halting enforcement of emergency rule changes to the program. The ruling centers on a fundamental question of governance: whether a state executive can alter a law passed by the Legislature through administrative action.

“It is well settled law that the executive branch enforces the law but cannot alter pre-existing law,” Meachum wrote in her decision, adding that the comptroller “lacks the authority to determine the constitutionality” of the statute underpinning the HUB program.

The HUB program, created by the Texas Legislature in 1987, was designed to increase participation of historically underutilized businesses—defined to include companies owned by Black, Hispanic, Asian American, Native American, and women entrepreneurs—in state contracting. Over decades, it has become a key mechanism for addressing disparities in public procurement, with billions of dollars in state contracts flowing through the program.

The lawsuit, Globe Express Trucking Inc., et al. v. Hancock, was brought by a group of affected businesses who argued that the comptroller’s December 2025 changes would effectively weaken or dismantle key provisions of the program. According to the court, those changes risked causing “immediate, irreparable injury” to the plaintiffs, many of whom rely on HUB certification to compete for state contracts.

Civil rights attorney Alphonso David, president and CEO of the Global Black Economic Forum and co-lead counsel for the plaintiffs, framed the ruling as both an economic and constitutional win.

“This is a clear and unequivocal statement that the Comptroller violated the law,” David said. “This is a victory for the rule of law and for the thousands of businesses whose livelihoods were put at risk.”

The court’s injunction currently applies only to the six named plaintiffs, though legal experts note the decision could have broader implications. If upheld, it may limit how far state agencies can go in reshaping legislatively mandated programs—particularly those tied to diversity, equity, and inclusion efforts that have faced increasing scrutiny nationwide.

That scrutiny has intensified in recent years, as challenges to race-conscious programs have moved through courts across the country, following landmark rulings like the U.S. Supreme Court’s 2023 decision in Students for Fair Admissions v. Harvard, which struck down affirmative action in college admissions. While the HUB program operates in a different legal context—public contracting rather than education—its focus on historically disadvantaged groups places it within the same broader policy debate.

Attorneys for the plaintiffs argue that the Texas case is ultimately about preserving legislative authority.

“What’s at stake is whether state officials can bypass legislatures and entrench those decisions through rulemaking,” said attorney Adam Schuman, co-lead counsel on the case. “The court made clear the answer is no.”

For small business owners across Texas, the stakes are more immediate. HUB certification often determines whether firms can access state contracts at all, particularly in industries like construction, transportation, and professional services where large contracts dominate. A rollback of the program, even temporarily, could shift millions of dollars away from historically marginalized entrepreneurs.

The case will now move toward a full trial scheduled for November 9, 2026. The state is widely expected to appeal the injunction, setting up a prolonged legal battle that could ultimately reach higher courts.

In the meantime, the ruling restores the HUB program—at least for the plaintiffs—to its pre-December 2025 framework, offering a temporary reprieve for businesses navigating an increasingly uncertain policy landscape.

Advocacy groups, including the Global Black Economic Forum and a coalition of business organizations, say they plan to continue pushing the case forward, framing it as a bellwether for how far states can go in reshaping equity-focused programs without legislative approval.

As the legal fight unfolds, the outcome could reverberate far beyond Texas—testing not only the durability of programs like HUB, but the boundaries of executive power itself.

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