Exclusive | Why we’ve filed civil-rights complaints against DEI in New York and Wisconsin: ‘Discriminates openly based on race’

A public-interest law firm has filed federal civil-rights complaints against New York and Wisconsin on behalf of contractors who say they’re losing millions thanks to those states’ race and gender discrimination in handing out lucrative government contracts, the New York Post can exclusively report.

“We’re a successful business by any metric, but if it wasn’t for the diversity requirements, we would be two or three times the size,” a New York company owner represented in the complaints told The Post.

“It’s been a significant frustration of mine for the last 10 years.”

He’s not alone.

But Donald Trump’s election and the president’s requirement — made in an executive order his first day back in the White House — that federal contract and grant recipients comply with federal anti-discrimination law have created a climate of hope. 

After reading about the Wisconsin Institute for Law and Liberty’s work on civil-rights cases, the supplier reached out. What resulted is WILL’s two complaints on behalf of Contractors for Equal Opportunity.

“Multiple times a day, we lose orders because we’re not a minority business,” the source, who supplies contractors for government-infrastructure projects and requested anonymity for fear of state reprisals, told The Post.

“I was actually with a customer yesterday, one of our good customers. And his words were: ‘You guys are considerably less expensive. You’re far easier to deal with. Your products are better. We love working with you, but unfortunately, we can’t buy off you most of the time because we have to meet these diversity goals.’”

Such set-asides are racially and sexually discriminatory — and so illegal under federal law, says Daniel Lennington, WILL’s managing vice president. 

Rather than take the cases directly to federal court, WILL filed Title VI complaints this week with US Attorney General Pam Bondi.

Title VI of the 1964 Civil Rights Act bans discrimination based on sex or race in programs receiving federal funds, and WILL notes the state programs receive federal grants from “several different agencies.”

The New York complaint targets the state’s Department of Economic Development for its Minority and Women’s Business Enterprise program, which WILL alleges can “disqualify contractors that fail to meet the racial goals of a project.”

“In short, if a contractor does not have the correct racial balance of workers, it is subject to penalties or disqualification,” the complaint says.

It cites data showing in the last three years, “DED received $23 million in federal funds from 64 separate transactions,” concluding “it is beyond question that Title VI applies.”

The Empire State plans to put up a fight.

“For more than 35 years New York State has worked to create an economic environment that values all New Yorkers while unlocking the vast potential of underserved groups,” DED spokeswoman Emily Mijatovic told The Post. 

“New York’s narrowly tailored MWBE is fully compliant with State Law and Supreme Court precedent,” Mijatovic added. “Governor Hochul and Empire State Development remain fully dedicated to continuing to advance a strong and legally sound minority- and women-owned business enterprise program, and New York’s commitment to expanding economic opportunity for all New Yorkers has never been stronger.”

Hochul recently trumpeted the fact 32.3% of state contracts go to such businesses and launched a program “to provide free, comprehensive support to help qualified MWBEs complete their applications for state certification” for Black History Month in February.

The Wisconsin complaint targets the state’s Department of Administration for its supplier-diversity program, which mandates a 5% quota of contracts for woman- or minority-owned businesses. 

‘We are asking you to open an investigation into a state-based supplier and procurement program that discriminates openly against small businesses based on race,” the complaint reads.

The New York supplier said he hears “daily” from government officials that his firms aren’t eligible for certain business because they’re not woman- or minority-owned.

“I don’t mind losing an order when it’s a fair playing field,” the source said. “Some orders we deserve to lose. But when we’re losing hundreds of millions of dollars of business every year simply because of our race or gender, it’s a little frustrating.”

The business owner said he didn’t want to defraud taxpayers by claiming minority status or female ownership — but not everyone has the same scruples.

“What this whole program has created is really a huge amount of fraud,” he said.

“You get people setting up so-called minority businesses that are really only fronts, and all these large infrastructure projects mandate a percentage of spend has to be minorities,” he explained. “It’s very difficult to meet those mandates, so they’ll knowingly go and overpay for product.”

WILL alleges the New York program grants $3 billion in discriminatory contracts annually and Wisconsin $200 million annually. 

Trump’s plan to rout diversity, equity and inclusive funding may change that.

“The executive orders have basically required all the agencies to identify targets of action that the federal government can take,” Lennington told The Post. “We have heard second hand that the White House is looking for examples to be made of universities, states and companies.”

“We think that the Trump administration wants to be very aggressive, and the landscape has completely changed with regard to DEI,” he added.

While it still exists, though, those harmed fear their business could completely dry up if they put their names to a complaint.

“These folks are very concerned about retribution for speaking out. It’s partially why this fight, in our eyes, is so important,” WILL’s communication director, Pat Garrett, told The Post.