Overview
- Attorney General Todd Rokita issued a formal legal opinion finding that core parts of the state’s Disadvantaged Business Enterprise (DBE) program are unconstitutional under the Fourteenth Amendment.
- The opinion identified numerical spending goals, race- and sex‑based certification processes, subcontracting mandates, and enforcement penalties as failing strict scrutiny and cited the U.S. Supreme Court’s 2023 Students for Fair Admissions decision.
- Governor Mike Braun directed the Indiana Department of Administration to stop implementing the unlawful DBE components and to move to merit- and race-neutral procurement rules while officials design replacement policies.
- Officials said contract preferences for veteran-owned firms remain lawful, the state may adopt race- and sex-neutral preferences for veterans and small or Indiana-based businesses, and a new Indiana small-business program will be announced.
- Rokita’s office will advise the IDOA on transition steps and work with the state legislature to repeal the 1983 statute, a process that will determine near-term effects for minority-, women- and small-business contractors and state procurement practices.