Texas Stripped 15,000 Businesses of Opportunity. Now It Faces a Legal Challenge.

Republicans have made disadvantaged communities a scapegoat for failed economic policies.

There are three pathways to the American Dream: education, the economy, and elections. Education guides what we know; the economy determines what we do; and elections decide who’s in charge. Under the Trump administration and his Republican regime, all three pathways are under attack with leaders at every level of government working to restore barriers and hoard opportunity for a select few at the expense of millions.

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Though most attention is focused on actions taken by the federal government, state-level Republicans have eagerly joined the mean-spirited attacks on communities that simply seek equity and a chance to prove their mettle. Correcting America’s history of discrimination did not end with the passage of new laws — it has required the same level of diligence that bigotry enjoyed. And it was starting to work. States have slowly begun to expand access and invite more Americans into prosperity. Yet, this success has been rejected by some local officials and demonized by many political leaders. Texas is one of our nation’s clearest examples, with the state operating as a testing ground for hostile ideologies that limit opportunity for all. Texas politicians have attacked diversity, equity, and inclusion in education, the freedom to vote for communities of color, and have placed dangerous limits on women’s bodily autonomy. These salvos have gained national attention, but their unlawful decision to limit economic opportunity for thousands of businesses has garnered less attention.

In December, interim Texas Comptroller Kelly Hancock decertified more than 15,000 minority- and women-owned businesses that participated in the Historically Underutilized Business (HUB) program through emergency rulemaking. For more than 25 years, the HUB program ensured that qualified small businesses had the opportunity to compete for public contracts and provided business owners with a clear path to economic freedom. In fiscal year 2024, more than $4 billion in state contracts were awarded to HUB-certified businesses. Hancock, an opponent of DEI programs, argued that the original iteration of the program was discriminatory and unconstitutional and changed the HUB program by restricting participation to businesses owned by disabled veterans.

Overnight, more than 15,000 businesses had their certifications revoked without notice or hearing, leaving thousands of families dealing with the impacts of an increasingly volatile economy. The businesses impacted by this decision are those who already deal with systemic challenges, including limited access to capital, with the HUB program acting as a lifeline for many who were able to grow and scale their businesses through their participation.

In response to Hancock’s actions, the Global Black Economic Forum, in partnership with Freedom Economy and American Pride Rises, announced a historic lawsuit to defend economic opportunity for those minority- and women-owned businesses stripped of their HUB certification. This appears to be the first affirmative litigation in the nation brought in direct support of entrepreneurs and Minority and Women Business Enterprises whose companies are being destabilized by unlawful attacks by state executive officials on legislatively enacted contracting programs.

Hancock’s actions are part of a concerted pattern, which we must recognize and oppose. Indeed, the future of our democracy rests in choices like these. A pluralistic democracy requires that we not simply avoid harm — it demands that we create clear pathways to success. But like authoritarians the world over, Republicans have made disadvantaged communities a scapegoat for failed economic policies. Cynical politicians wield their power and influence to subjugate, understanding that economic power is essential to the American identity. By stripping thousands of Texans of due process through illegal rollbacks of policies, trust in our economic and democratic systems erodes.

In the first wave of authoritarian attacks, patriots fighting for the American values of diversity, equity, and inclusion have largely been on the defensive. The HUB lawsuit shows we can fight back — and we will win. One of the steps to freedom and power is the obligation to litigate — to make the regime follow the rules or admit otherwise. As we have seen happening on issues across the country, we are obligated to speak up and show up — even in court. It’s not just about restoring certifications. It is about affirming that opportunity in America must be governed by law, not ideology.

Democracy in our nation has never been self-executing. Every expansion of opportunity has required Americans to insist that America belongs to all of us, not just a powerful few. The HUB lawsuit is a beacon to those who are losing hope. It shows us all that pathways to prosperity belong to the people. As patriots who believe, we must defend them — in the courts, in our communities, and at the ballot box.

Stacey Abrams is a bestselling author, entrepreneur, and political leader. She is the host of the Assembly Required podcast and founder of American Pride Rises and the 10 Steps Campaign.

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