BOISE — Attorney General Raúl Labrador led a 20-state coalition in filing an amicus brief urging a federal court to approve the Trump Administration’s decision to stop enforcing racial discrimination in federal transportation contracting. The brief, filed in Mid-America Milling Company v. United States Department of Transportation, supports a proposed consent order that would end the federal government’s enforcement of race-based preferences in the Disadvantaged Business Enterprise (DBE) program.
“The DBE program requires states receiving federal funds to award a certain percent of federal transportation contract dollars to minority and women-owned businesses, regardless of whether those businesses submit the lowest bids,” said Attorney General Labrador. “This federal mandate forces states to sometimes reject the most qualified, cost-effective contractors based solely on the race and gender of business owners, resulting in higher costs for taxpayers. The Trump Administration is right to end this, and Idaho is proud to support them in doing so.”
In Idaho, this discrimination has proven expensive. Over a recent 44-month period, the DBE program required Idaho’s Transportation Department to reject the lowest bid eight times, wasting $15.2 million in total project costs that could have been spent on other transportation projects. In one example, Idaho was forced to reject a $2.2 million bid and instead accept a $2.7 million bid to meet these federal demographic targets.
The Mid-America Milling case was originally filed during the Biden Administration, challenging the DBE program as unconstitutional racial discrimination, and the Biden Administration vigorously defended the discriminatory program. After President Trump took office, his Administration reversed course, acknowledging that the program violates the Constitution and agreeing to a consent order that would stop enforcing it. The coalition’s brief urges the court to approve the proposed consent order, arguing that the DBE program violates the Equal Protection Clause.
The $15.2 million figure represents only cases where the lowest bid was rejected outright. According to an MIT study cited in the brief, the total cost may be significantly higher because DBE requirements artificially inflate most contract prices. The study found that when California ended race-based contracting preferences, state contract costs fell 5.6% compared to federal contracts that still required such preferences.
Joining Idaho are attorneys general from Alabama, Arkansas, Florida, Indiana, Iowa, Kansas, Kentucky, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, and West Virginia, along with the Arizona Legislature.
Read the brief here.