The appeal, filed in federal court Monday, is the latest step Houston has taken to protect the longstanding program designed to even the playing field for minorities, women and small businesses. U.S. District Judge David Hittner ruled last month that the program’s race-based elements were unconstitutional, blocking officials from continuing them.
City Attorney Arturo Michel called the ruling a “clear error” and asked Hittner to reconsider. He justified the program as necessary to address a “persistence of racial discrimination in Houston city contracting,” citing a disparity study the city adopted last year.
The case originates with a white couple from Spring, who sued the city in 2023 alleging that their lawn care business “could not “compete on an equal footing with other businesses.” The couple also is suing Harris County over its minority business program.
Houston’s MWBE program has operated since 1984, handing out certifications to businesses and tracking annual diversity goals in contracting. Roughly one-fifth of the $2.5 billion in contracts Houston awarded in 2025 were given to minority, women, and small businesses. The city also runs programs to help businesses owned by veterans, those with disabilities and members of the LGBTQ+ community, which are not affected by the ruling.
