Trump Administration Moves to End $37B Minority, Women Contract Program

The Trump administration has moved to terminate the Department of Transportation's $37 billion Disadvantaged Business Enterprise (DBE) program, which allocates contracts to minority- and women-owned businesses, arguing that it violates the Constitution's equal protection clause. The program, established by Congress in 1983 and serving about 49,000 businesses, is described by its challengers as the largest and oldest affirmative action initiative in the U.S. The administration sided with two Indiana-based white-owned companies, Mid-America Milling and Bagshaw Trucking, who sued the DOT claiming the program discriminates against nondesignated racial groups and inflates construction costs for taxpayers. The DOJ's settlement proposal to dismantle the DBE program follows a 2023 Supreme Court ruling against race-conscious college admissions and represents a significant shift from the Biden administration's previous defense of the program. Conservative advocates argue the program has victimized thousands of small businesses and distorted the market, while opponents of the settlement maintain the DBE is essential for addressing barriers faced by minorities and women in the contracting sector. The settlement awaits judicial approval and faces challenges from a coalition of businesses supporting the program's continuation.