Texas House Bill HB251

Texas 2025 - 89th 1st C.S.

• Filed: 8/1/25

Caption

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

Impact

By eliminating the state's Historically Underutilized Business (HUB) program, HB251 potentially reshapes the landscape of business opportunities for minority-owned firms. The repeal could hinder the capacity of these businesses to compete fairly for public contracts, as they would no longer receive special consideration. This modification raises concerns about the long-term impact on economic equity among diverse business owners, especially given the historical challenges these groups have faced in accessing government contracts.

Summary

House Bill 251 aims to revise the current framework surrounding contracting by governmental entities in Texas. It introduces a prohibition on considering certain characteristics such as race, ethnicity, gender identity, and sexual orientation when awarding contracts. The bill emphasizes a merit-based approach, allowing governmental entities to assess bids solely based on standard criteria without preferential treatment stemming from diversity, equity, and inclusion practices. This legislative change is framed as an effort to ensure that contracting decisions are made based on qualifications and performance rather than demographic attributes.

Contention

The passage of HB251 has sparked significant debate among legislators and advocacy groups. Proponents argue that the bill creates a level playing field for all bidders and eliminates what they see as reverse discrimination in government contracting. However, critics contend that removing the HUB program and implementing restrictions on consideration criteria undermines efforts to promote diversity and inclusion within state contracts. This opposition underscores a broader conflict regarding the balance between non-discrimination principles and the need for targeted support for historically marginalized communities.

Texas Constitutional Statutes Affected

Government Code

• Chapter 2252. Contracts With Governmental Entity
  • Section: New Section

• Chapter 2161. Historically Underutilized Businesses
  • Section: New Section