AGC of America released a Key Elements document designed to support small and emerging construction firms. To lead this effort, AGC established the Contract Preference Programs Taskforce, drawing on insights from a recent member survey as part of its comprehensive review process. The resulting Key Elements document highlights five core principles that should guide any future efforts to support small and emerging contractors, particularly if current programs are revised or eliminated. Importantly, the taskforce also identified real-world examples from states and cities that are already applying these principles effectively.
You may recall, recent legal challenges have raised questions about the future of the federal DBE and 8(a) programs, particularly in light of the Supreme Court’s ruling in the Students for Fair Admissions case, which found that race cannot be used as a factor in college admissions decisions. We recently reported on a proposed consent order that is not yet final and must be agreed upon by the plaintiffs, the Department of Transportation, and the Intervenor DBEs that were permitted to intervene in the case. This proposed settlement applies specifically to the federal DBE program and does not extend to similar laws enacted by state or local governments. State and local governments will reassess their own business development programs to ensure they are consistent with the Supreme Court’s ruling against using a “rebuttable presumption” that individuals of certain racial groups are socially disadvantaged (unless such policies meet the “strict scrutiny” standards), while also evaluating related Trump Administration executive orders on related DEI matters that could impact their federal funding and compliance requirements.
AGC of America remains engaged on this issue and will continue to monitor developments and provide updates as they unfold.
For more information, contact Alex Etchen or Jordan Howard.