INDIANAPOLIS, Ind.(WOWO) — Indiana Gov. Mike Braun announced Wednesday that the state will end race- and sex-based contracting preferences in state procurement and move toward what his administration describes as a merit-based approach for awarding contracts.
The announcement follows a legal opinion from Indiana Attorney General Todd Rokita, who concluded that race- and sex-based preferences within portions of Indiana’s Diversity Business Enterprises Program violate the Equal Protection Clause of the Fourteenth Amendment.
The changes affect the Minority and Women’s Business Enterprises components of Indiana’s Diversity Business Enterprises, or DBE, Program, which provided certain contracting considerations for minority-owned and women-owned businesses seeking state work.
Braun said the state will replace those preferences with a system focused on equal opportunity, competition and business qualifications.
“Our Constitution mandates equal protection under the law, because a system where the government picks winners and losers on the basis of race or sex can never be fair,” Braun said. “Indiana has replaced divisive, politically-charged programs with a focus on Merit, Excellence, and Innovation: a level playing field where every single Hoosier has the chance to get ahead with hard work.”
Rokita said the previous contracting program improperly treated businesses differently based on race and sex.
“This blatantly illegal program singles out some Hoosiers for disfavored treatment purely because of their sex or the color of their skin, and it insults other Hoosiers by suggesting they cannot compete on a fair playing field,” Rokita said. “The program is both un-American and unconstitutional.”
The Indiana Department of Administration requested a review of the legality of the Governor’s Commission on Supplier Diversity, the Minority and Women’s Business Enterprises Program and related contracting requirements in August 2025.
Following that review, Braun’s administration said Indiana will move forward with a procurement system that evaluates businesses based on qualifications and performance rather than demographic classifications.
The governor’s office said a new initiative focused on helping small businesses compete for state contracts will be announced soon.
The Indiana Small Business Program will be designed to promote and support the participation of qualified Indiana small businesses in state procurement opportunities.
State officials said the goal of the new approach is to expand access to contracting opportunities while ensuring businesses compete under the same standards.
