Exclusive: Four States Accused Of Race-Based DOT Policies
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The article reports that the Wisconsin Institute for Law & Liberty (WILL) has filed formal complaints alleging that four states-new York, Massachusetts, Maryland, and indiana-are illegally bypassing a Trump-era injunction by continuing to run race- or sex-based procurement programs in their transportation departments. WILL claims these state programs violate title VI of the Civil Rights act, which prohibits discrimination in programs receiving federal funding, by maintaining minority- and women-focused goals in bidding and contracting for transportation projects.
Key points:
– The complaints target state DOTs in New York, Massachusetts, Maryland, and Indiana, accusing them of using state-funded “Minority Business Enterprise” or similar requirements to pursue racial or gender-based goals.
– Specific examples cited include New York’s bid notices with minority goals, Massachusetts’ eight-percent minority- and women-owned business targets for a pavement project, Maryland’s minimum minority goals on major highway projects, and Indiana’s race- and sex-based quotas on a segment of Interstate 69.
– WILL argues that even when projects are primarily state-funded, the states cannot circumvent federal law and that the practice amounts to an illegal “shell game.”
– The complaints follow the trump governance’s decision to shut down the multi-decade set-aside programs for women- and minority-owned businesses, and WILL’s earlier lawsuits on behalf of contractors claiming discrimination.
– WILL represents Contractors for Equal Chance (CEO), which contends that such programs discriminate against white male businesses and others.
– A DOT spokesperson did not respond to requests for comment.
Context: the actions come after a DOJ/DOT agreement to end certain affirmative-action-like set-aside programs,and WILL claims some states continue to use discriminatory procurement practices despite the injunction and related rulings.
When the Trump administration slapped a permanent injunction on the oldest and largest affirmative action program in the federal government, it was supposed to be the end of race- and sex-based discrimination at the Department of Transportation. But at least four states have been engaging in an illegal end-around of the order issued last fall by the DOT and the Department of Justice, according to a new complaint exclusively provided to The Federalist.
The Wisconsin Institute for Law & Liberty (WILL) this week filed the formal complaint against state transportation departments in New York, Massachusetts, Maryland, and Indiana. In the five-page letter to Trump administration Transportation Secretary Sean Duffy, WILL alleges that the states violated the section of the 1964 the Civil Rights Act that prohibits discrimination based on race, color, or national origin in any program that receives federal funding.
WILL alleges the states continue to employ state-based Minority Business Enterprise programs to achieve “racial goals.” In other words, white male business owners need not apply.
In October, Duffy’s DOT published an Interim Final Rule (IFR) excising all race- and sex-based presumptions from federal Disadvantaged Business Enterprise programs.
“States seem to believe that because certain projects are entirely state funded, the IFR does not apply… But states cannot circumvent federal law simply by using state tax dollars.“ Daniel Lennington, vice president and deputy council for the Milwaukee-based public-interest law firm, argues in the complaint.
‘Race-based Goals’
Named on the complaint are New York Gov. Kathy Hochul, Massachusetts Gov. Maura Healey, Maryland Gov. Wes Moore, and Indiana Gov. Mike Braun, the sole Republican in the group. The document includes the states’ requests for bids in recent months, filed with alleged discriminatory demands.
New York state’s DOT “assures the public that it complies with” the Civil Rights Act’s prohibitions on discriminatory practices, the complaint states. But a notice of letting for April 16 advertises three separate projects with a Minority Business Enterprise goal, the complaint, alleges. The document includes the ads in the exhibits.
Massachusetts DOT on March 4 issued a notice to prospective bidders posting a quota of eight percent minority and women businesses for a pavement project, according to the complaint.
Maryland’s transportation department “imposes race-based goals on its state-funded highway projects.” Officials set a minimum minority business goal of five percent for substantial projects involving “several significant highways, tunnels, and bridges, including the Francis Scott Key Bridge (FSK), the Baltimore Harbor Tunnel, and the JFK Memorial Highway.”
“The bidder shall seek commitments from minority business enterprises by subcontracting and/or procurement of materials and/or services, the combined value of which equals or exceeds the established Contract goal of 14 percent of the total value of the prime Contract,” the bid invitation states.
And Indiana imposes race-based quotas on its highway projects — even those involving federal highway repairs, the complaint alleges. A state department of transportation advertisement last month seeking bids for pavement patching a segment of Interstate 69 in Huntington County, “contains explicit race- and sex-based goals.” The project demands minority businesses make up seven percent of the contract bid price, with women-owed businesses taking three percent of the pie, according to the complaint.
The four states receive billons of dollars each year in federal funding.
‘Illegally Discriminate’
WILL is representing Contractors for Equal Opportunity (CEO), a nationwide voluntary membership association of companies that have been “negatively impacted by discrimination in local, state, and federal contracting programs,” the organization states on its website.
“Whether governments use the phrase ‘Affirmative Action,’ ‘Diversity, Equity, Inclusion,’ or just ‘Supplier Diversity,’ these programs all illegally discriminate based on race and/or gender,” CEO’s website states. “CEO members have experienced discrimination, higher costs, and/or lost business because of these programs. CEO members can be either prime contractors or subcontractors.”
If you are a contractor or business impacted by race-based programs, join Contractors for Equal Opportunity. HERE:https://t.co/fU1NZfB83l
— Dan Lennington (@DanLennington) March 3, 2025
The Wisconsin Institute for Law & Liberty and the contractors group in February 2025 filed complaints against the “Wisconsin Supplier Diversity Program” and the “New York Minority and Women-Owned Business Enterprise Program.” WILL alleged that the programs enforce race-based goals and requirements, excluding white-owned businesses and others. The New York program represents $3 billion in public contracts award over a one-year period, according to WILL, while Wisconsin’s program topped $200 million in “discriminatory spending each year.”
A DOT official did not respond to The Federalist’s request for comment.
‘Shell Game’
WILL drove changes to the long-standing preference policies in the DOT. In September, the DOJ and the federal transportation department agreed to shut down the multi-billion dollar, set-aside program for qualifying women-owned and minority-led roadbuilding and construction businesses. It had been in place for 45 years.
Official Trump administration action followed WILL’s successful lawsuit on behalf of two clients, Mid-America Milling Co., LLC (MAMCO) and Bagshaw Trucking Inc. The DOJ found the program is unconstitutional.
WILL’s latest allegations assert some states remain committed to programs deemed discriminatory by the Trump administration and through court rulings. In the complaint, Lennington noted that, with a few minor exceptions, most state DOTs appear to be complying with the injunction.
“The Trump Administration took an important step to end race discrimination in federally funded highway projects. Now some states are flouting that rule by paying for some roadbuilding projects without any federal money,” the attorney said in a statement to The Federalist. “But federal law prohibits this shell game, and the Trump Administration should enforce the law against these states.”
Matt Kittle is a senior elections correspondent for The Federalist. An award-winning investigative reporter and 30-year veteran of print, broadcast, and online journalism, Kittle previously served as the executive director of Empower Wisconsin.
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