Judge Halts Biden's $37 Billion Construction Contracts for Women and Minorities

A federal judge has delivered a significant blow to the Biden administration’s plan to allocate $37 billion in federal road contracts to businesses owned by women and racial minorities. The ruling halts the enforcement of the Disadvantaged Business Enterprise (DBE) Program, which has mandated for decades that a percentage of federal contracts be awarded based on gender and race.

Judge Gregory Van Tatenhove’s decision, issued earlier this week, comes after two small businesses sued the Department of Transportation. The plaintiffs argued that the DBE program caused them to lose contracts unfairly due to its race- and gender-based quotas. This ruling further complicates the Biden-Harris administration's so-called "equity agenda," as it aligns with recent challenges to affirmative action policies.

The DBE program, reauthorized under the Infrastructure Investment and Jobs Act signed by President Biden in 2021, allocated $37 billion to businesses owned by women and racial minorities, making up roughly 10% of the federal road construction budget. The program, which has existed since the 1980s, was designed to promote diversity in federal contracting. However, the recent lawsuit filed by Mid-America Milling and Bagshaw Trucking claimed that their bids were unfairly passed over, despite being lower than those of DBE firms.

Judge Van Tatenhove’s ruling is clear: while past discrimination is real, the government’s approach to addressing it must still align with constitutional principles. “The federal government cannot classify people in such a manner that violates the principles of equal protection,” he wrote in his decision, echoing concerns raised in the Supreme Court’s June 2023 ruling that affirmative action in college admissions was unconstitutional.

Key Points from the Ruling:

• The DBE program has historically set aside 10% of federal road construction contracts for businesses owned by women and minorities.

• Two small businesses, owned by white males, lost out on numerous contracts, despite having lower bids than their DBE competitors.

• The judge ruled that such race-based quotas violate the Equal Protection Clause of the Constitution.

• The ruling builds on recent legal challenges to other race-based government programs, including cases involving the Minority Business Development Agency and the Small Business Administration.

Daniel Lennington, a lawyer for the Wisconsin Institute for Law and Liberty (WILL), which filed the lawsuit on behalf of the businesses, called the ruling a major blow to Biden’s equity-driven policies. “We believe that’s unconstitutional and it hurts real people that have real businesses every day,” Lennington stated. He added that WILL plans to seek a final decision that would permanently block the DBE program from being enforced on any business.

This case highlights the growing backlash against affirmative action programs under the Biden-Harris administration. As these race- and gender-based programs come under increasing legal scrutiny, it is becoming clear that the courts are unwilling to tolerate policies that undermine equal treatment under the law.

The ruling leaves the future of the DBE program in doubt, as road construction companies across the country grapple with the potential end of a decades-old system they once considered untouchable. As challenges to race-based government programs continue to mount, the Biden administration’s broader agenda of pushing “equity” through federal policy faces a major obstacle.

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