Companies seeking to partner with the state of Indiana must affirm that they don’t have any diversity, equity or inclusive practices “that treat people differently on the basis of race and sex when recruiting, hiring, promoting and conducting other employment activities.”
The policy took effect July 1 and is part of a push to eliminate “discriminatory” DEI practices, Attorney General Todd Rokita said in a news release last week.
Rokita’s office is charged with reviewing and approving all state contracts while enforcing the False Claims Act. The additional anti-DEI certification action is undertaken “in coordination” with Gov. Mike Braun and the Indiana Department of Administration.
Also last week, the state abruptly cancelled its 2025 Business Conference and B2Bloom Expo. The 17th annual gathering, hosted by the Indiana Department of Administration’s Division of Supplier Diversity, showcased opportunities for underrepresented companies to contract with state government.
The agency declined to share why the October conference was cancelled, only saying, “Further details will be shared when they become available.”
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In the release, Rokita said DEI “is often used as a cover for policies that violate state and/or federal civil rights laws.”
“No one gets a free pass for unlawful discrimination just because they claim to have good intentions,” Rokita said. “Treating people differently in the workplace or at school based on race and sex is a destructive practice and illegal. We will continue to enforce the law against higher education institutions and working to eliminate this terrible Diversity, Equity, and Inclusion known as DEI nonsense.”
State contracts will still have language prohibiting racial discrimination.
But contractors could experience consequences under the state’s False Claims Act if found to have DEI programs violating Indiana or federal civil rights laws.
The anti-DEI language in new contracts says the contractor “does not and shall not operate any programs or engage in any practices promoting Diversity, Equity, and Inclusion (DEI), or other similar goals, that violate Indiana or Federal Civil Rights Laws by treating a person differently on the basis of race or sex, such as by considering race or sex when making recruitment,
hiring, disciplinary, promotion, or employment decisions; requiring employees to participate in training or educational programs that employ racial or sex stereotypes; or attempting to achieve racial or sex balancing in the Contractor’s workforce.”
Following a January executive order, executive branch state agencies cannot use state funds or resources to support DEI “positions, departments, activities, procedures or programs if they grant preferential treatment based upon one person’s particular race.”
Instead, Braun has pivoted to “MEI,” or merit, excellence and innovation.
The cancelled business conference
The Division of Supplier Diversity has sought to “promote, monitor and enforce” certification standards for minority and women-owned small businesses since 1983, and added veteran-owned small businesses in 2018. A February presentation describes the mission of the 13-person department as “provid(ing) equal opportunity” to those businesses in the state’s procurement and contracting process.”
A May promotional video on the division’s Facebook page pitches the annual conference as a gathering of over 80 exhibitors, including state agencies, local universities and contractors, where small business owners can network.
“We’re planting seeds of opportunity, pollinating strategic partnerships and cultivating a vibrant, diverse ecosystem right here in Indiana,” narrates Kesha Rich, the division’s deputy commissioner. “… Let’s grow your business together.”
Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.
