HOUSTON – The Acres Homes Chamber for Business and Economic Development says it is facing an unexpected financial setback after Texas Southern University paused the release of state-appropriated funds the Chamber has relied on for decades.
For more than 25 years, the Chamber has received about $44,000 annually through TSU as part of a state budget line item earmarked for Urban Redevelopment and Renewal. Chamber President Warren Fitzgerald Muhammad says the money has never been delayed until now.
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“There’s never been a hiccup. Never been a hiccup,” Muhammad said. “At the 11th hour, 11:59 on the clock, we were informed we’re not getting it.”
Muhammad says the missing $44,857 creates an immediate shortfall because the Chamber depends on the allocation as part of its operating budget.
“It has really created a hardship,” he said. “We’ve received this annually for years, last year, the year before, on and on.”
The funding helps cover workshops, seminars, and year-round support for small businesses, many of which generate no revenue for the Chamber. Those free programs include classes on starting a business, bookkeeping, taxes, selecting the right business structure, and more.
“A lot of what we do is non-revenue generating,” Muhammad explained. “These workshops help people who want to be entrepreneurs learn the steps to take and how to get started. And we’ve had many people go through them and actually launch businesses.”
Without the funds, he says the Chamber will have to lean more heavily on community support to keep those programs running.
The pause comes during a bumpy moment for Texas Southern University. In November, Governor Greg Abbott and Lieutenant Governor Dan Patrick ordered an investigation into TSU after the State Auditor’s Office allegedly uncovered thousands of unauthorized invoices totaling hundreds of millions of dollars.
Among the findings outlined in an interim audit summary:
- 743 invoices totaling $282.2 million were linked to vendors whose contracts had expired.
- 8,144 invoices totaling $158 million had invoice dates preceding the requisition dates.
- Some sampled transactions had no valid contracts, or contracts that were expired or unsigned.
- TSU allegedly did not follow its own procurement procedures for any of the transactions sampled.
TSU issued statements in November saying the university has cooperated fully with auditors and had already begun corrective action, including rolling out a new procurement system and strengthening financial oversight.
Muhammad believes the heightened scrutiny of TSU may be affecting the Chamber’s annual allocation.
“I believe that plays a role,” he said. “I can’t speak to TSU’s internal operations, but that’s something that hovers over them.”
He emphasized that the Chamber is not criticizing the university.
“It’s not an attack on TSU,” he said. “We’re simply expressing the dire situation we find ourselves in. There was no advance warning, no communication that we needed to do certain things to receive it. It was just a call saying we’re not getting the money this year.”
Muhammad says the Chamber’s mission remains unchanged.
But without the annual funding, he warns that 2026 programming could be in jeopardy.
“This funding is fundamental for us to stay alive and keep doing the work we do in the community,” he said. “We’ve done this work decade after decade. Now it’s in jeopardy.”
KPRC 2 repeatedly reached out to Texas Southern University for comment about the paused allocation but did not hear back.