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US agrees to end use of race, gender in highway, transit contracts

  • In September 2023, a federal judge in Kentucky ruled that the Department of Transportation’s contract program, which considers race and gender, is unconstitutional.
  • The ruling followed a 2023 Supreme Court decision blocking race-conscious policies in college admissions, prompting the department to reassess its long-standing affirmative action program.
  • The Disadvantaged Business Enterprise Program, originally established in 1983 and renewed under President Biden’s 2021 Infrastructure Investment and Jobs Act, allocates more than $37 billion in federal highway and transit contracts to businesses owned by minorities and women.
  • The Justice Department filed a motion supporting the settlement to end the program’s use of race- and sex-based presumptions, stating that it violates constitutional equal protection guarantees.
  • If approved, the settlement would dismantle the program, affecting about 49,000 businesses and raising questions about market distortion and future federal contracting policies.
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U.S. News broke the news in New York, United States on Wednesday, May 28, 2025.
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