Sen. Mike Lee introduces bill targeting federal affirmative-action policies

WASHINGTON — U.S. Sen. Mike Lee has introduced legislation meant to end federal government policies aimed at helping historically marginalized communities secure federal contracts.

The initiative parallels efforts in Utah in 2024 and in other states to end policies and programs at public universities and other publicly funded entities meant to promote diversity, equity and inclusion, known by the acronym DEI.

"Unconstitutional discrimination disguised as DEI has infected our federal government," Lee, a Republican, said in a statement. "Awarding government contracts based on race and sex is, simply put, racist and sexist. These policies defy our founding values and waste taxpayer dollars on subpar projects."

Proponents tout affirmative-action and diversity, equity and inclusion efforts as a means of boosting opportunity for women, racial and ethnic minorities and others who have been historically marginalized. But foes view such programming as discriminatory to others and no longer needed given what they believe are societal advances.

HB261 in 2024 in Utah targeted diversity, equity and inclusion programming at the state level, and now U.S. lawmakers are taking aim at such initiatives at the federal level.

"My bill will end discrimination in government contracting to restore merit-based partnerships, ensuring contractors, businesses and workers are evaluated not by the color of their skin or gender, but their ability to serve the American people," Lee's statement continues.

The measure, introduced Monday, would eliminate federal programming, mandates and quotas meant to give preferences in granting of federal contracts to contractors based on things like sex and race. President Donald Trump issue an executive order in late March with the same end, but Lee said legislation is needed to codify the policy.

U.S. Rep. Glenn Grothman, R-Wisconsin, who introduced the measure in the U.S. House, said diversity, equity and inclusion policies result in government waste. "For too long, federal contracting has relied on race- and sex-based mandates that drive up costs and undermine confidence in the system. Our bill restores accountability, reduces waste, and ensures contracts are awarded based on merit," he said in a statement.

Despite the concerns of Lee and Grothman, an undated U.S. Department of Labor statement focused on a 2021 executive order implemented by President Joe Biden, a Democrat, found that relatively low numbers of women and minorities secure federal contracts. Biden's order called for "a comprehensive approach to advancing equity for all, including people of color and others who have been historically underserved, marginalized and adversely affected by persistent poverty and inequality."

Just 3% of federal contracts awarded in fiscal year 2021 went to minority-owned businesses, though they represented 24% of businesses eligible for such contracts, according to the Department of Labor. Black business owners accounted for nearly 12% of eligible contract recipients but were awarded less than 5% of the total while women-owned businesses secured around 5% of contracts though they represented nearly 25% of eligible businesses.

Lee and Grothman's measure would not end federal initiatives meant to help businesses owned by military veterans or small or rural business operators. Their statement did not explain the rationale for the carve out, and Lee's office didn't respond to a query seeking comment.

Boosters of the new proposal are buoyed by a 2023 U.S. Supreme Court ruling essentially deeming affirmative action polices in college admissions policies to be unconstitutional.

The rationale in the ruling "inextricably applies to the employment space, which is why we've seen a spate of lawsuits and corporations reevaluating their DEI policies," Ilya Shapiro, a senior fellow at the Manhattan Institute, said in the statement issued by Lee. "One of the least headline-grabbing areas where identity-based preferences make their pernicious presence felt is in government contracting, which requires federal legislation to fix."

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