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yesterday

Trump Administration Moves to End $37 Billion Disadvantaged Business Enterprise Program

The Justice Department filed a court settlement arguing the longstanding affirmative action measure violates the Constitution’s equal protection guarantee following a Supreme Court decision on race-based policies.

A drone view of cars driving along Highway 50 near patchy snow on the ground in Twin Bridges, California, U.S. January 2, 2025. REUTERS/Fred Greaves/File Photo
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Overview

  • The DOJ filed a settlement proposal in federal court to prohibit race- and sex-based contract awards under the 1983 Disadvantaged Business Enterprise Program.
  • The DBE program reserves at least 10 percent of federal transportation infrastructure funds for roughly 49,000 minority- and women-owned businesses.
  • The proposed settlement reflects a reversal by the Justice Department after a June 2023 Supreme Court ruling on race-conscious college admissions.
  • The lawsuit was initiated in 2023 by Mid-America Milling and Bagshaw Trucking, which argued they were disadvantaged by the program’s goals.
  • A coalition of businesses representing minorities and women has intervened to challenge the settlement and protect the program’s affirmative action provisions.