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