Donald Trump targets diversity programs, threatening opportunities for Black-owned businesses

Black business owners are expressing concern over the Donald Trump administration’s recent executive orders aimed at dismantling diversity, equity, and inclusion (DEI) programs, which they argue have been instrumental in increasing their participation in federal contracting opportunities. These changes could jeopardize the limited progress made under President Joe Biden’s administration to help minority-owned businesses, including Black-owned firms, compete for federal contracts.

Casey Cooper, a Black woman who has grown her long-haul trucking business over 11 years and secured nearly $6 million in federal contracts, remains unfazed by the DEI rollback. Cooper has criticized DEI programs, saying they were ineffective and didn’t address deeper systemic barriers that prevent minority businesses from thriving. “DEI isn’t for us,” Cooper said. “It looks good on paper, but that money doesn’t go to us anyway.”

Trump’s January executive orders directed federal agencies to repeal prior orders aimed at promoting equal opportunity in the workplace, leaving many minority contractors uneasy about their future prospects. Experts in DEI and government contracting fear that these actions will erode any advancements made in boosting minority business participation. Ken Harris, president of the National Business League, noted that DEI policies, while imperfect, provided a semblance of opportunity in an otherwise exclusionary system.

Under Biden, federal agencies were encouraged to allocate at least 11% of federal contract dollars to small disadvantaged businesses, with a goal of reaching 15% by 2025. However, despite some improvement, Black-owned businesses received only 1.61% of federal contracts in 2023, a fraction of the overall total. Small businesses struggle with barriers like raising capital and competing for large federal contracts, which have grown in size, making it difficult for smaller firms to gain experience and land prime contracts.

Trump and his supporters argue that DEI programs unfairly discriminate against other groups, such as white people and men, and undermine the merit-based system of hiring and promotion. However, critics, including business owners like Patricia Sigers and Wendell Stemley, say that systemic challenges remain for minority contractors. Sigers, who owns a small construction firm, highlighted the difficulty of obtaining the necessary performance bonds required for federal contracts, a hurdle that larger, more established companies are able to overcome more easily.

Stemley, president of the National Association of Minority Contractors, described a “good old boy” network that restricts access to opportunities for minority contractors. He also questioned the efficacy of government programs that aim to support minority businesses, noting that the reality often fails to match the narrative.

In response to Trump’s executive orders, leaders of minority-focused trade associations are considering legal challenges and lobbying efforts to preserve diversity initiatives. Drexel Johnson, a Black contractor in California, expressed frustration with past administrations’ limited support for Black contractors and the potential rollback of the little progress that has been made.