Indianapolis, IN – On July 15, 2026, Governor Mike Braun announced that Indiana will end race- and sex-based preferences in its state contracting programs, replacing them with what the administration describes as a merit-based system. The change affects the Minority and Women’s Business Enterprises (M/WBE) program and the broader Diversity Business Enterprises (DBE) program, which for years set goals for directing a share of state contracts to minority- and women-owned firms.
The decision followed a formal legal opinion from Attorney General Todd Rokita, who concluded that the race- and sex-based components of those programs are unconstitutional under the Equal Protection Clause of the Fourteenth Amendment. Rokita pointed to the U.S. Supreme Court’s 2023 decision in Students for Fair Admissions, and his opinion also found that the Governor had the authority to direct the Indiana Department of Administration (IDOA) to discontinue the programs’ unlawful aspects.
In announcing the change, Braun framed it as opening state contracting equally to all businesses — “a level playing field where every single Hoosier” can compete based on merit.
What the programs did
Indiana’s minority- and women-owned business goals had, on average, targeted roughly 10% of state contracts for women-owned businesses and 8% for minority-owned businesses. Under the new approach, those targeted goals are being unwound, and the IDOA has discretion in how and when it does so. Contracting preferences for veteran-owned businesses remain in place and are unaffected by this change.
The debate
Supporters of the change, including the Governor and Attorney General, argue that awarding contracts on the basis of race or sex is both unfair and unconstitutional, and that a merit-based system treats every business owner equally.
Critics see it differently. Several Democratic lawmakers said the move removes a tool that helped businesses that have long faced barriers to public contracting. State Rep. Earl Harris (D-East Chicago) said the decision erases opportunities for Black Hoosiers, women, and other minority business owners who have “historically been shut out of contracting.”
What this could mean for Black-owned businesses
For Black-owned businesses across Indiana — including here in Fort Wayne — the M/WBE program has been one pathway for gaining access to state contracts. Removing race-conscious goals means minority-owned firms will now compete for those contracts without that targeted framework in place. How significant the impact will be may depend on how the IDOA unwinds the program and what pathways remain for emerging and minority-owned businesses to compete and win.
This is a developing situation, and its full effects will become clearer over time. What has not changed is the value Black-owned businesses bring to our region’s economy — or our commitment to helping them compete, grow, and thrive.
Where the Chamber stands — and how you can respond
The Black Chamber Fort Wayne exists to advocate for the creation, growth, and general welfare of Black leaders and Black business owners in Greater Fort Wayne. We are following this issue closely and will continue to provide our members with the connections, resources, and guidance they need to pursue contracting opportunities and build resilient businesses.
We want to hear from you:
- Tell us how this affects you. If your business has used — or hoped to use — state contracting programs, your story helps us advocate effectively on your behalf. Reach us at Talk2us@myfwbcc.org or (260) 366-6333.
- Make your voice heard. Consider contacting your state and local elected officials to share how contracting access affects your business and your community. Your perspective is an important part of this conversation.
Together, we remain committed to a Fort Wayne where every Black-owned business has the opportunity to compete, contribute, and succeed.
