Frankfort, KY — A federal judge in Kentucky has declared that the U.S. Department of Transportation’s policy of prioritizing disadvantaged minority and women-owned businesses in federal funding for highway and transit projects is unconstitutional. This judgment strikes at the heart of efforts aimed at correcting historical imbalances in business opportunities.
Judge Gregory Van Tatenhove of Frankfort, an appointee of former Republican President George W. Bush, delivered his decision on Monday, stating the 1983 federal program conflicts with the Constitution’s equal protection clause. This cessation comes as courts increasingly scrutinize governmental affirmative action-type policies.
The establishment of the Disadvantaged Business Enterprise program was intended to address past racial and gender discrimination by ensuring such businesses received at least 10% of federal highway and transit project funding. The recent reauthorization of this program under President Joe Biden’s 2021 Infrastructure Investment and Jobs Act allocated over $37 billion for these efforts.
Under the program’s guidelines, certain racial minorities and women are initially presumed to be socially and economically disadvantaged. This presumption facilitates their access to vital funding and contract opportunities, a practice aimed at leveling the playing field that has now come under legal challenge.
The specific case before Judge Van Tatenhove was brought by Mid-America Milling Company and Bagshaw Trucking, companies based in Kentucky and Indiana that contested the constitutionality of these presumptions. They argued that the policy unfairly discriminates against other groups by violating the Fifth Amendment, which mandates equal protection under the law.
The court’s decision aligns with a broader legal trend following a recent Supreme Court ruling that curtailed affirmative action admissions policies at colleges and universities—policies designed to enhance the presence of underrepresented minority students on campuses.
While Van Tatenhove acknowledged the federal government’s good intentions in addressing historic injustices, he emphasized that any classification by the government must adhere strictly to constitutional protections concerning equality.
The ruling only prevents the Department of Transportation from applying race or gender considerations in contracts involving the plaintiffs. Nevertheless, it represents a notable setback for federal programs aimed at fostering minority and women-owned businesses.
A spokesperson for the Department of Transportation expressed the department’s intent to defend the program vigorously as the legal process continues but confirmed that they would adhere to the court’s current ruling pending further developments.
This decision is part of a growing body of legal actions that challenge racial considerations in federal programs and initiatives designed to support historically disadvantaged groups in America. As these challenges proceed, they set significant precedents that could reshape the landscape of governmental assistance to minority and women-owned businesses across the nation.