The Claim: The Railroad Commission spends nearly 45% of all spending on DEI. In FY 2023, RRC ranked 41st in the state in HUB spending, but in FY 2025, the RRC ranked 9th.
We find this claim to be false. First, the RRC is compelled to follow the law until the law is changed OR the Governor issues a lawful executive order! Governor Abbott’s Executive Order GA-55 was issued on January 31, 2025.
We received confirmation that the RRC’s new VetHub policies per the Governor’s EO GA-55 (adopted by the RRC per TAC title 34 part 1, chapter 20, subchapter D, and Government code title 10 subtitle D, chapter 2161, subchapter A) ensures the RRC aligns with the Governor’s recent “color blind” directive. Link to the new VetHUB policy that state agencies use for compliance with EO GA-55: Veteran Heroes United in Business (VetHUB)
Further statistics proving the claim to be false:
The referenced report claiming DEI spending actually comes from the Comptroller’s office and only looks at an agency’s HUB-eligible expenditures, NOT its full budget. Keep in mind also that HUB – a state program – was just restructured in December 2025 by the Comptroller’s Office. This means that all contracts BEFORE the restructuring had to comply with the State’s original HUB rules.
Using FY 2024 (before the Governor’s EO) as an example, the RRC’s operating budget was approximately $240 million. Of that total, only $23.4 million was identified as HUB-eligible expenditures. Of that $23.4 million, the RRC spent $10 million (43% of eligible expenditures) on HUB contracts.
When you consider the RRC’s FY 2024 budget of $240 million, only 4.1% went to legal HUBs. (allegation overstates the figure by a factor of 10) In fact, less than 10% of the budget ($23.4 million) was even eligible for HUB spending. FY 2023 – $8,772,101 was spent in HUB-qualified spending, out of the $137,000,000 budget (9.31% of the overall budget). FY 2022 – $7,533,000 was spent in HUB-qualified spending, out of the $145,000,000 budget (11% of the overall budget).