Judge blocks Houston minority-owned contracting program as unconstitutional

U.S. District Judge David Hittner has ruled Houston’s minority-owned business contracting program unconstitutional and blocked the city from using race-based criteria in it. The order affects Houston’s procurement system, run through the Office of Business Opportunity, and the process that decides which firms can compete for city work.

Hittner sided with Jerry Thompson and Theresa Thompson, a white couple who own landscaping businesses, in the case they filed in 2023 in the U.S. District Court for the Northern District of Texas. The court found the program’s provisions involving minority-owned businesses violate the Equal Protection Clause. Hittner also blocked Houston from enforcing race-conscious policies tied to the contracting program.

The ruling cuts directly into Houston’s MWDBE/SBE/PDBE certification system. The certification gives firms access to a directory of certified businesses and weekly pre-certification workshops, tools that have helped contractors try to break into work tied to construction, professional services and other city categories. With race-based criteria now blocked, Houston will have to rethink how it screens firms and how it structures access to taxpayer-funded contracts.

For minority-owned firms, the decision could eliminate a pathway meant to address historical barriers in public contracting. For other contractors, it could open the process to a more neutral competition model. City staff may need to revise bid documents, compliance checks and certification rules while the case moves forward.