ACC Statement

On July 28, 2026, a federal judge in the Southern District of Texas ruled that the race-based components of the City of Houston's Minority, Women, and Small Business Enterprise Program, and of the Midtown Management District's Minority, Woman, and Disadvantaged Business Enterprise Policy, are unconstitutional, and permanently enjoined both entities from continuing to administer those race-conscious provisions.

The Asian Chamber of Commerce – Houston has followed this case closely because its outcome touches on issues our members raise with us often: how public contracting opportunities are structured, who gets a fair shot at them, and how our AAPI-owned businesses, many of them small, family-run firms much like the plaintiffs in this case, compete for that work.

We want to be direct about where we stand. Our Chamber's mission has always been to expand real, durable opportunity for AAPI-owned businesses in Houston, not to defend any single mechanism for getting there. This ruling changes the mechanism the City and Midtown have used since long before many of our members opened their doors. It does not change our mission, and it does not change our members' need for genuine access to public contracts.

Three points matter most to our Chamber and our members as this decision takes effect:

First, this ruling does not eliminate every tool the City has to support small and disadvantaged businesses. The court's injunction is limited to the race-based components of these programs; goals and preferences tied to business size, disadvantage, or veteran status were not before the court and remain available. We will work with the City of Houston and Midtown Management District to understand exactly which race-neutral pathways remain open, and we will make sure our members have clear, timely information about how to qualify for them.

Second, we recognize this decision as part of a broader legal trend. Following the Supreme Court's decisions in Students for Fair Admissions v. Harvard, courts are applying the same demanding standard to race-based programs well beyond university admissions. We will continue to track how Houston, Midtown, and other local governmental bodies revise their procurement rules in response, and we will advocate on our members' behalf as those rules are rewritten.

Third, this Chamber remains committed to closing the real gaps our members face in public contracting. This includes gaps in access to capital, in bonding capacity, in visibility to prime contractors, and in navigating the complicated bid and compliance processes. Those barriers do not disappear because a particular program is shut down, and addressing them directly, through mentorship, capacity-building, and race-neutral advocacy, will do more for our members' long-term competitiveness than any single preference program could.

We will be reaching out to the City of Houston, Midtown Management District, and our peer chambers in the coming weeks to better understand how each intends to comply with the court's order, and we will keep our members informed as that process unfolds. In the meantime, our Chamber's door remains open to any member with questions about how this ruling may affect a current or upcoming bid.

For questions about this statement, members may contact the Chamber office directly.