Business owners sue comptroller after their removal from state minority business program

March 2, 2026 - 18:29

A group of women- and minority-owned business owners have filed a lawsuit against the state's acting comptroller, Kelly Hancock, after being removed from the Historically Underutilized Business (HUB) Program. The removals, which occurred in December, have sparked significant controversy and legal action.

The plaintiffs argue that their abrupt removal from the program, which is designed to foster state contracting opportunities for certified businesses, was unlawful and has caused severe financial harm. They contend the action jeopardizes their ability to compete for and secure vital government contracts, threatening their company's stability and growth.

Acting Comptroller Hancock defended the decision, stating he was ending a Diversity, Equity, and Inclusion (DEI) initiative. However, business owners and advocates counter that the HUB program is a long-standing economic development tool, not merely a DEI program, and is critical for leveling the playing field in public procurement.

The lawsuit now places the future of the state's supplier diversity efforts in the hands of the courts, as affected businesses fight to be reinstated into a program they say is essential for fair access to economic opportunity.