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HB 147

Relating to prohibited considerations in governmental entity contracting and elimination of the state's historically underutilized business program.

89th Legislature, 2nd Called Session (2025) Introduced by Carrie Isaac

Texas bill prohibits government contracts from considering race/gender and eliminates the state's program supporting minority and women-owned business procurement.

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#historicallyunderutilizedbusinesses(s0076) #humanrelations(i0410) #legislativebudgetboard(v0161) #purchasing--local(i0644) #purchasing--state(i0643)
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Bill Summary · HB 147

Legislative bill overview

HB 147 would prohibit government entities in Texas from considering race, ethnicity, gender, or other protected characteristics when awarding contracts and would eliminate the state's Historically Underutilized Business (HUB) program. The bill targets diversity-focused procurement practices that have been used to encourage contracting with minority and women-owned businesses.

Why is this important

This bill directly addresses how state and local governments spend taxpayer money on contracts. The HUB program has been a mechanism for increasing economic opportunities for historically disadvantaged business groups, while the proposed prohibition would fundamentally reshape government procurement to be characteristic-blind. The change could significantly impact small businesses owned by minorities and women who have relied on these programs.

Potential points of contention

  • Economic equity vs. colorblind contracting: Supporters argue that all businesses should compete equally regardless of demographics; opponents contend that historical disadvantages require corrective policies to level the playing field
  • Practical elimination of HUB program: The program currently tracks utilization rates and sets goals; eliminating it removes infrastructure for monitoring diversity in government spending, raising questions about whether outcomes will be tracked
  • Legal precedent concerns: Similar measures have faced legal challenges in other states; questions remain about constitutional compliance with existing federal contracting requirements and Fourteenth Amendment considerations

Compiled from official sources — confirm details with the bill’s official record.

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