The fight against Acting Comptroller Kelly Hancock’s unilateral dismantling of the Historically Underutilized Business (HUB) program has reached a critical and increasingly frustrating new phase. While we secured a significant victory in court, the Comptroller’s office is doubling down on its attempt to bypass the Texas Legislature and rewrite state law from behind a desk. Here is the breakdown of the latest developments and what they mean for the 15,000+ minority- and women-owned businesses currently in the crosshairs. In mid-April, Judge Amy Clark Meachum issued a temporary injunction against the Comptroller’s emergency rules. The judge’s reasoning was a direct rebuke of Hancock’s “executive overreach,” stating clearly that the executive branch cannot unilaterally alter laws passed by the Legislature. The court found that the Comptroller lacks the authority to determine the constitutionality of the HUB Act and that his changes would cause “immediate, irreparable injury” to Texas businesses. Instead of respecting the court’s concern for the separation of powers, the state filed a Notice of Appeal. By appealing the injunction, Hancock and the Attorney General are signaling their intent to drag this through the higher courts, hoping to keep the program gutted while the legal clock runs out. Perhaps most concerning is that despite the court’s skepticism, the Comptroller is moving forward with permanent administrative rule changes. Yesterday, May 5, 2026, the office officially transitioned from “emergency” rules to a permanent framework known as VetHUB (Veteran Heroes United in Business). The new rules (34 TAC Chapter 20, Subchapter D) took effect, officially replacing the HUB program with a restrictive model limited primarily to service-disabled veterans. By pushing through these “permanent” rules while the lawsuit over the “emergency” rules is still active, the Comptroller is attempting to make it harder for the courts to unwind the damage once the old system has been administratively erased. Kelly Hancock is attempting to do administratively what the Texas Legislature refused to do during the 2025 session. When the lawmakers said no to killing the HUB program, Hancock decided he would simply do it himself. This isn’t just an attack on minority- and women-owned businesses; it is an attack on the rule of law. The Comptroller is acting as both the executive and the legislature, ignoring a district court’s warning that he is overstepping his bounds. A final trial is currently set for November 9, 2026. Between now and then, we expect a fierce battle in the appellate courts. We must continue to put pressure on the Comptroller’s office and remind our representatives that “Acting” Comptroller Hancock does not have the authority to delete 35 years of Texas law with the stroke of a pen. “The Legislature voted. The answer was no. The Comptroller doesn’t get to override that decision because he disagrees with it, that’s not his role under the Texas Constitution.” —
Senator Royce West, March 2026.
