WILL secures major victory against the nationwide Disadvantaged Business Enterprise Program, which sets aside construction contracts for certain minority groups 

The News: The Wisconsin Institute for Law & Liberty (WILL) secured a major legal victory against the Biden-Harris Administration, as a federal judge ruled against the “disadvantaged business enterprise” (DBE) program. The DBE program discriminates against businesses based on race and gender, doling out contracts to small businesses owned by women and certain preferred minority groups. This lawsuit was filed in federal court in the Eastern District of Kentucky. Under this preliminary ruling, the federal government’s race and gender preferences may not be used against WILL’s clients. 

The Quote: WILL President and General Counsel Rick Esenberg, stated, “Brick by brick, we will dismantle federal policies that discriminate against America’s small businesses and entrepreneurs. We started this work in 2021, and we will continue to fight until all Americans receive equal treatment.”   

Federal Judge Gregory F. Van Tatenhove, stated in his decision, “The Court is keenly aware of the past discrimination that certain groups of people have faced in this country. And the Court is sure that the federal government has nothing but good intentions in trying to remedy past wrongs. But remedying those wrongs must still pass constitutional muster. The federal government cannot classify people in such a manner that violates the principles of equal protection.”  

About DBE: The DBE program was most recently reauthorized in November 2021 when President Biden signed the Infrastructure Investment and Jobs Act. Congress mandated that 10% of all new surface transportation funding—over $37 billion—“shall be expended through small business concerns owned and controlled by socially and economically disadvantaged individuals.” 

The federal DBE program is an affirmative action program that gives preference to certain companies based on race and gender. Through this program, the U.S. government finances the American transportation system, including highway construction, with a series of race and gender quotas they call “goals.” In light of the Court’s order, WILL’s clients will now be able compete for contracts on an equal footing, without regard to race and gender.   

About WILL: The effort to overturn this program is through WILL’s Equality Under the Law Project, which has targeted various programs within Biden’s Racial Equity Agenda. WILL has had recent success under this initiative suing the Biden-Harris Administration over its “Minority Business Development Agency,” which was designed to help Americans of some races, but not other races. This victory similarly targeted President Biden’s 2021 Infrastructure Act for violations of the Equal Protection Doctrine. 

More about WILL’s Equality Under the Law Project can be found here: DefendEquality.org. 

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Judge’s Order, 9.23.24