Following a legal opinion from Attorney General Todd Rokita finding race- and sex-based considerations in contracting in the Minority and Women’s Business Enterprises (M/WBE) components of Indiana’s Diversity Business Enterprises (DBE) Program are unconstitutional under the Equal Protection Clause of the Fourteenth Amendment, Governor Mike Braun announced on July 15 that Indiana will the practice and replace it with a merit-based approach that “gives every Hoosier business a fair opportunity to compete,” according to a press release.
“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. 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,” Braun said in a statement.
“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,” said Rokita. “The program is both un-American and unconstitutional.”
In August of last year, the Indiana Department of Administration (IDOA) asked the Attorney General to review the legality of the Governor’s Commission on Supplier Diversity, the Minority and Women’s Business Enterprises Program, and related race- and sex-based contracting requirements.
Governor Braun will soon announce a new small-business initiative to help more Indiana businesses compete for state contracts. The Indiana Small Business Program will promote and facilitate the use of qualified Indiana small businesses in state procurement.
IDOA contracting goals
To qualify as minority- or woman-owned enterprise, at least 51% of the business must be owned by a minority or a woman, according to state statute. For nonprofits a majority of the board or directors must be minorities.
In 2021, the IDOA released a policy on contracting goals based on the results of a supplier diversity survey conducted between July 1, 2013 through June 30, 2018, which assessed whether there were any disparities in contracts and procurements among state agencies and state educational institutions.
- Construction: MBE – 7%, WBE – 5%
- Professional services: MBE – 8%, WBE – 11 %
- Goods and services: MBE – 8%, WBE – 13%
Local leaders respond
Some community leaders have responded unfavorably to Braun’s announcement. State Rep. John Bartlett (D-Indianapolis) said this and other moves have, “left many Hoosiers deeply unsettled” as they face the possibility of returning to past injustices.
“They need you to articulate clearly what you are doing. In my opinion, you are not safeguarding their liberties nor their future. As I look at your actions, it seems to me that you are putting Indiana on the road back to slavery.”
Alice Watson, president and CEO of the Indiana Black Expo (IBE), said IBE is “disappointed” by the state’s decision, noting that access was unequal for Black-owned businesses, not talent or innovation.
“Merit has never been the issue. Opportunity has,” Watson said.
![Pinterest](https://pinterest.com/pin/create/button/?url=https://indianapolisrecorder.com/braun-ends-race-and-sex-based-contracting-consideration/&media=https://indianapolisrecorder.com/wp-content/uploads/2025/06/Screenshot_3-6-2025_84610_www.facebook.com_.jpeg&description=Governor Mike Braun announced on July 15 that Indiana will the practice and replace it with a merit-based approach that “gives every Hoosier business a fair opportunity to compete," according to a press release.){kind=link}