(Washington, D.C.) – Today, Congressman Glenn Grothman (R-WI) introduced the Ending Discrimination in Government Contracting Act to stop federal agencies from violating the Constitution by awarding contracts based on recipients’ race or sex. Senator Mike Lee (R-UT) has introduced the Senate companion of the bill.

“Companies in my district have lost out on contracts despite offering higher quality products at a lower cost to the taxpayer. That’s not just unfair, it’s wasteful,” said Congressman Glenn Grothman. “I was proud to introduce the Ending Discrimination in Government Contracting Act because preferences in government contracting based on race or sex are fundamentally unfair, costly, and out of step with what most Americans believe. Contracts should be awarded based on merit, not race or gender, as the Constitution guarantees equal protection for all. For too long, federal contracting has relied on race- and sex-based mandates that drive up costs and undermine confidence in the system. Our bill restores accountability, reduces waste, and ensures contracts are awarded based on merit.”

“Unconstitutional discrimination disguised as ‘DEI’ has infected our federal government,” said Senator Mike Lee. “Awarding government contracts based on race and sex is, simply put, racist and sexist. These policies defy our founding values and waste taxpayer dollars on subpar projects. My bill will end discrimination in government contracting to restore merit-based partnerships, ensuring contractors, businesses, and workers are evaluated not by the color of their skin or gender, but their ability to serve the American people.”

“For decades, Pacific Legal Foundation has fought to ensure that government treats every American equally under the law. Pacific Legal Foundation applauds Senator Mike Lee and Representative Glenn Grothman for introducing The Ending Discrimination in Government Contracting Act which would end the consideration of race, ethnicity, or sex in federal contracting decisions. After the Supreme Court’s landmark ruling in Students for Fair Admissions, the legal foundation for these unjust preferences has crumbled. Congress should finish the job.” — Glenn Roper, Senior Attorney in Equality & Opportunity, Pacific Legal Foundation

“Race- and sex-based contracting costs taxpayers billions of dollars, endangers the security of our troops, and inhibits the construction and repair of our nation’s infrastructure. Senator Lee and Congressman Grothman’s bill takes the important step of ending these unconstitutional practices and returning federal contracting to more merit-based principles, in which Americans, regardless of race or sex, are treated equally.” – Judge Glock, Director of Research and Senior Fellow, Manhattan Institute

“Since the Supreme Court found racial preferences in college admissions to be unconstitutional, there has been a swirling debate in legal and policy circles about what this means outside the educational space. The equal-protection logic of Harvard v. SFFA inextricably applies to the employment space, which is why we’ve seen a spate of lawsuits and corporations reevaluating their DEI policies. One of the least headline-grabbing areas where identity-based preferences make their pernicious presence felt is in government contracting, which requires federal legislation to fix. The Ending Discrimination in Government Contracting Act is exactly what’s needed to reform this often byzantine space and ensure that taxpayers aren’t funding contracts based on identity-based spoils.” – Ilya Shapiro, Director of Constitutional Studies and Senior Fellow, Manhattan Institute

“It’s time to end race- and gender-based preferences in government contracting. This bill from Senator Lee and Congressman Grothman will help dismantle the ideology of left-wing identity politics and replace it with the principle of colorblind, equal treatment under the law.” – Chris Rufo, Senior Fellow, Manhattan Institute

Background Information

Since the 1970s, the federal government has expanded an ever-growing web of DEI requirements,  mandates, and quotas for government contracts. Federal agencies are currently obligated to grant a certain number of government contracts to companies based on the race, ethnicity, or sex of company owners or employees. This system intentionally awards work based on immutable characteristics rather than ability to execute a job effectively. These practices are incompatible with the Constitution and frequently result in incomplete projects that exceed projected budgets, wasting taxpayer dollars.

On March 26, 2026, President Trump issued Executive Order 14398 to address DEI discrimination by federal contractors. This move was part of a larger effort by the Administration and congressional Republicans to end DEI practices throughout the country. Legislation is necessary to codify this initiative.

The Ending Discrimination in Government Contracting Act underscores a shift away from unjust DEI hiring and contracting practices and towards a system that prioritizes fairness, efficiency and equal treatment under the law. As America begins to celebrate its 250th anniversary, this legislation is a timely emphasis on our founding principle that “all men are created equal.”

The Ending Discrimination in Government Contracting Act:

  • Eliminates existing quotas, mandates, and programs that provide government contracting opportunities to companies based on the race and/or sex of the company’s owner;
  • Eliminates certain federal DEI programs like the Disadvantaged Business Enterprise and the Minority Business Development Act of 2021;
  • Repeals DEI preferences for Department of Transportation grants;
  • Eliminates discriminatory federal reporting requirements on small businesses;
  • Requires federal agencies to rescind any rules or regulations requiring agencies to provide preference to contractors based on their race or sex, and;
  • Prevents federal agencies from reissuing similar rules and regulations in the future.
  • Retains support for small businesses generally and does not prohibit federal agencies from prioritizing rural or veteran-owned businesses when issuing government contracts.

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