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HB 251

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

89th Legislature, 1st Called Session (2025) Introduced by Carrie Isaac

HB 251 would ban Texas government entities from considering protected characteristics in contracting and eliminate the state's Historically Underutilized Business preference program.

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#historicallyunderutilizedbusinesses(s0076) #humanrelations(i0410) #legislativebudgetboard(v0161) #purchasing--state(i0643) #stateagencies #boards&commissions(i0749)
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Bill Summary · HB 251

Legislative bill overview

HB 251 would prohibit government entities in Texas from considering race, ethnicity, sex, or other protected characteristics when awarding contracts, and would eliminate the state's Historically Underutilized Business (HUB) program—which currently gives preferences to minority and women-owned businesses in government contracting.

Why is this important

The HUB program has directed billions in state contracts to underrepresented business owners over three decades. Eliminating it would fundamentally change how Texas allocates public contracting dollars and represents a significant shift in state procurement policy with measurable effects on business opportunity access for minority and women-owned enterprises.

Potential points of contention

  • Constitutional questions: Federal contracting law permits some consideration of past discrimination; eliminating all consideration raises legal concerns about compliance with federal requirements
  • Economic impact on underrepresented groups: HUB program data shows it has generated substantial contracting opportunities; elimination could reduce business formation and wealth-building in minority communities
  • Competing values on merit vs. equity: Debate over whether "merit-only" contracting actually produces better outcomes versus whether historical disadvantages justify continued preference programs
  • State competitive position: Some argue preferences help Texas businesses compete; others contend they create inefficiency or undermine fairness

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

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