Houston’s decades-old program awarding city contracts to minority-owned businesses is ruled unconstitutional – Houston Public Media

A longstanding city of Houston program requiring some government contracts to be awarded to minority-owned businesses was ruled unconstitutional Tuesday by a federal judge.

U.S. Judge David Hittner ruled in favor of a white couple who sued the city and a city-affiliated management district in 2023, claiming their local landscaping businesses faced racial discrimination because of the municipal contracting initiative created in 1984. Hittner determined the “race-conscious portion” of the Minority, Women and Small Business Enterprise Program violates the Equal Protection Clause of the Fourteenth Amendment to the U.S. Constitution.

Gerald and Theresa Thompson, the owners of Landscape Consultants of Texas and Metropolitan Landscape Management, filed their lawsuit in the aftermath of a U.S. Supreme Court ruling that struck down affirmative action admissions policies at Harvard University and the University of North Carolina, which along with colleges all over the country had used them to prevent racial discrimination and ensure their campuses include Black, Hispanic and other minority students. Texas legislators also have passed laws in recent years that ban diversity, equity and inclusion initiatives at public schools in the state.

Hittner wrote in court documents that the Houston case “addresses an unresolved issue of constitutional law.”

“Equal protection means equal protection for everyone, not preferential treatment for some,” said Erin Wilcox of the Pacific Legal Foundation, a national nonprofit that represented the Houston couple. “The Fourteenth Amendment guarantees every business owner the same shot at a government contract, regardless of race. This is a victory not just for the Thompsons, but for every business owner who believes government contracts should be won on merit.”

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Houston City Attorney Arturo Michel said in a Tuesday night statement the city is “evaluating a potential appeal.”

“The City recognizes that the court relied on recent United States Supreme Court decisions,” Michel also said. “The decision does not affect other programs, such as the City’s Small Business Enterprise Program. The City will abide by the court’s decision regarding existing contracts and recently awarded contracts pending any further court order.”

In his own statement, U.S. Rep. Christian Menefee, D-Houston, said the ruling is “yet another step by far-right activists, like the lawyers who filed this case, fighting to erase every tool minority and women business owners use to compete on a level playing field.”

“They’ve fought to end diversity programs in our colleges, at corporations, and in government contracts,” he added. “It’s a shame, and The Supreme Court of the United States has cleared the way for it to happen in ending affirmative action and gutting the Voting Rights Act.”

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Hittner noted that his ruling applies only to the race-based aspects of the city business program and a similar initiative utilized by the Midtown Management District, which also was sued. The management district’s leadership is appointed by the mayor and city council.

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The city and management district can continue to ensure that small and women-owned businesses receive government contracts.

The Houston City Council considered amending its minority-owned business program in 2025, in response to the lawsuit as well as a study that found Asian- and Hispanic-owned businesses did not face disparities in certain categories of city spending. Black-owned businesses faced disparities across all spending categories, the study found.

The council ended up voting to accept the study results while continuing the program without making any changes, along with establishing a veteran-owned small business certification program.

Regarding the proposed changes at the time, Whitmire said, “If we don’t have this consensus going forward as we go to court to defend the entire program, it will be in jeopardy. So that was certainly a consideration — get ready for court — because we have individuals in society that would end the program totally, and obviously we cannot tolerate that.”

Editor’s note: This story was updated July 29, 2026, to include comment from Houston City Attorney Arturo Michel.