New Opportunities: Houston's Revisions to Subcontracting Initiatives for Minority-Owned Businesses

City officials in Houston are contemplating transferring certain Hispanic and Asian-owned enterprises out of the Minority & Women-Owned Business Enterprises (MWBE) program. Established in 1984, this initiative has supported many minority-owned contracting businesses in thriving economically but is now jeopardized due to a lawsuit from a Spring-based white couple owning landscaping companies. They assert that the program contravenes the 14th Amendment's equal protection clause, claiming they were compelled to allocate $143,000 to a minority competitor during a $1.3 million contract.The forthcoming trial will examine the program’s constitutionality. A disparity study by MGT, presented at a March committee meeting, found no disparities for Hispanic or Asian-owned businesses in key sectors. Based on these findings, officials suggest moving these groups to a race-neutral small business category to avoid constitutional conflicts. As stakeholders raise concerns, the Houston City Council has delayed a vote to accommodate further community engagement, emphasizing the need for comprehensive dialogue before making changes.