A program that aims to bring more minority and women-owned businesses into the state’s procurement system is facing possible elimination.
Gov. Mike Braun’s administration sought an advisory opinion Aug. 26 from the Attorney General’s Office on the legality of the Governor’s Commission on Supplier Diversity and the continued implementation of the Minority and Women’s Business Enterprises Program.
The move comes after 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.”
A Sunday Facebook post from the Division of Supplier Diversity provided more information on the request while also postponing the group’s third quarter meeting set for Monday.
“Governor Braun requested that the supplier diversity commission meeting be postponed due to pending legal review of the program from the Attorney General. In an effort to save taxpayers money and commissioners their time, the next meeting will be scheduled with appropriate notice following the receipt of the legal opinion.”
The commission identifies minority-, veteran- and women-owned business, initiates programs to assist them in obtaining state contracts and includes them on solicitation mailing lists
The division set participation goals. For instance, the most recent goal was for minority-owned businesses to average 8% across construction, goods and services and professional services contracts; and women receiving 10% of the contracts.
Veteran-owned businesses are also a part of the program, but are not part of the legal review.
The group also tracks disparity between the participation of these groups in the state procurement system.
The request from Department of Administration Commissioner Brandon Clifton is based on a 2023 ruling by the Supreme Court of the United States striking down the use of race in college admissions.
It also quotes a 2025 memorandum from the U.S. Attorney General giving guidance on unlawful discrimination for federal funding recipients.
“In recent years, the federal government has turned a blind eye toward, or even encouraged, various discriminatory practices, seemingly because of their purportedly benign labels, objectives, or intentions. No longer. Going forward, the federal government will not stand by while recipients of federal funds engage in discrimination,” the memo said.
It further stated that programs can’t discriminate on the basis of race, color, national origin, sex, religion, or other protected characteristics — no matter the program’s labels, objectives, or intentions.
Clifton’s request to the Attorney General asked to determine the legality of the entire diversity business program, as well as whether the division must comply with state law requiring a five-year diversity study of contracts. That study is due this year.
Based on the response, Clifton asked if “an alternative program that focused on characteristics such as veterans’ status, small business status, and businesses domiciled in Indiana or with Indiana workers comply with the requirements set forth in current federal law?”
Another question was whether it’s permissible for the state to continue to honor contracts for which requests for proposals have been issued prior to the issuance of an opinion by the Indiana Attorney General’s Office.
It is unclear the timeline for that opinion, which is non-binding.
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