Minority- and women-owned businesses are bracing for the end of affirmative action in federal contracting — and the potential loss of contracts worth at least $70 billion a year — as government programs for “disadvantaged” firms have fallen to legal attack over the past year.
In a seismic shift, a series of court rulings have held that some of the federal government’s largest diversity programs violate the Constitution’s guarantee of equal protection, often citing the Supreme Court’s 2023 decision to overturn race-conscious college admissions.
As a result, key agencies have dropped race and gender preferences born in the civil rights era and intended to level the playing field by setting aside billions each year in contracting dollars for minority- and women-owned firms.
“A reality has set in that it’s a different game,” said Tony Franco, managing partner at PilieroMazza, which represents numerous minority contractors. How the government tries to achieve equality “is going to require much more thinking through of how to get to disadvantaged communities of all races.”
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