DBE Program Lawsuit: The Future of Race and Gender-Based Policies in Business after SFFA

In the context of the U.S. Supreme Court’s precedent-setting verdict in Students for Fair Admissions, Inc. v. President & Fellows of Harvard College, 600 U.S. 181 (2023) (SFFA), which curtailed the extent of race-based affirmative action programs in college admissions, a consequential federal lawsuit has now been leveled in the Eastern District of Kentucky. This lawsuit brings into focus alleged discrimination perpetrated through the U.S. Department of Transportation’s Disadvantaged Business Enterprise (DBE) program.

The new case, titled Mid-America Milling Co., LLC v. Department of…, brought by the Robinson+Cole Construction Law Zone challenges the very constitutionality of the DBE program. The plaintiff claims that the program treats companies discriminatorily based on the race and gender of their owners.

The DBE program was originally designed to ensure the participation of companies owned by individuals who are socially and economically disadvantaged in the distribution of DOT funds. However, with the shifting legal landscape following the Supreme Court’s ruling on the SFFA case, it is argued that race-based criteria must not be the predominant factor in such programs.

Legal professionals need to keep an eye on the developments of this case as it could have far-reaching implications for race and gender-based policy-making. The verdict might end up redefining the parameters of how affirmative action in business and beyond can be implemented, without crossing the boundaries of constitutionality.