When policy moves without lawmakers: A Texas case

As of 2026, Texas is seeing the impact of major policy changes enacted in 2025, with new legal challenges shaping how those changes are implemented. In one early test, a state court has temporarily blocked efforts by the Texas Comptroller to remove women- and minority-owned businesses from the state’s Historically Underutilized Business (HUB) program.

The Comptroller’s office had moved to overhaul the program through emergency rules, limiting eligibility to certain veteran-owned businesses and revoking existing certifications tied to race, ethnicity, or sex. A group of affected businesses challenged the change, arguing that the agency overstepped its authority by effectively rewriting a law passed by the legislature.

A judge granted a temporary injunction, restoring the program’s prior structure for the plaintiffs while the case moves forward.

Why it Matters

The HUB program was designed to help women- and minority-owned businesses compete for public contracts. Changes to the program could affect who has access to those opportunities.

• State agencies may be limited in how they change policy
  The case raises questions about whether an agency can alter a program created by law without legislative action.
• Policy can shift even when lawmakers aren’t in session
  In Texas, agencies can make changes through rules and enforcement decisions, meaning policy continues to evolve between legislative sessions.
• Courts play a key role in shaping what happens next
  The temporary block shows how legal challenges can pause or reshape policy changes while larger questions are resolved.

Background

The current legal challenge follows a series of major policy changes in Texas during the 2025 legislative session, when lawmakers advanced a broad set of measures affecting women’s rights, economic opportunity, and how state programs are structured and enforced.

The Texas Legislature does not meet in regular session in 2026 and is not scheduled to reconvene until January 2027. As a result, policy activity this year is largely happening through state agencies, rulemaking, and the courts, rather than new legislation.

Within that context, the Texas Comptroller’s office moved in late 2025 to significantly change the state’s Historically Underutilized Business (HUB) program through emergency rules. The changes narrowed eligibility and revoked certifications for many businesses, prompting legal challenges from affected companies.

In April 2026, a state judge temporarily blocked those changes for the plaintiffs, finding that executive agencies may not have the authority to alter programs established in state law. The case is ongoing and could shape how far agencies can go in implementing or redefining policy outside of the legislative process.

Resources

The Texas Tribune - Texas removes women and minorities from Historically Underutilized Business program for state contracts
KXAN - Judge temporarily blocks changes to the Historically Underutilized Business program