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These Indy business owners are feeling the effects of DEI opposition

By Ashley Fowler

These Indy business owners are feeling the effects of DEI opposition

INDIANAPOLIS (MIRROR INDY) -- If John Morrow Jr. wants to plan for the future of his Indianapolis business, he needs answers.

From the Indiana Department of Transportation. From the federal government. From a judge in Kentucky whose decision last year put Morrow and many other business owners in an uneasy waiting period.

Morrow owns ForeSight Environmental Solutions. The company is certified as a disadvantaged business enterprise, or DBE, a federal program that helps his small business compete for contracts on projects for INDOT and in other states. The program is meant to prevent discrimination by setting diverse hiring goals.

But that program is on a partial pause after two southern Indiana companies filed a lawsuit saying the practice of setting goals for disadvantaged businesses resulted in "reverse discrimination."

A federal judge in Kentucky then temporarily blocked the program while the lawsuit continues.

The disruption comes as Republican leaders are fighting to get rid of programs that assess or reward diversity in schools and workplaces. President Donald Trump and Gov. Mike Braun, for example, have issued orders to eliminate DEI programs.

And while it's too soon for business owners to analyze the full impact, the possibility of the DBE program going away makes looking ahead an uncomfortable exercise.

"We had clear goals," Morrow said of his company's future.

Morrow's company specializes in air quality technology. That service probably won't be impacted by changes to the DBE program, he said, because there isn't a lot of competition.

But the next step for his company's future -- getting in on the demand for electric vehicle charging stations -- is where he sees big opportunities with INDOT.

The department wants to put $100 million toward building a statewide network of charging stations. But even those plans are now uncertain with the Trump administration holding back funding.

For now, Morrow is stuck waiting for answers.

Indianapolis business owners said they aren't hearing much from INDOT.

Asked for its stance on the program and whether it's still trying to meet DBE goals, INDOT spokesperson Natalie Garrett told Mirror Indy the department is "following all guidance" from the U.S. Department of Transportation and Federal Highway Administration. Much of INDOT's project funding comes from the federal government, which has rules about how the money should be spent.

But that answer didn't satisfy Morrow.

"You can't have a plan to build infrastructure based on a non-answer," he said.

Meanwhile, the court case that interrupted the program might come to a halt for now. Both sides in the case asked for a pause because of changes at the federal level since Trump took office.

The request cites Trump's executive order to end "illegal DEI and DEIA policies."

Gov. Braun has adopted a similar tone in Indiana. Braun signed an executive order in January to replace "diversity, equity and inclusion" with "merit, excellence and innovation."

Braun, through a spokesperson, did not respond to Mirror Indy's emailed questions asking for his position on the DBE program and his response to the small business owners who are worried.

"We're all in the dark," said Summer McIntyre, who owns CMG Trucking.

The Indianapolis company has been DBE-certified for more than 10 years. McIntyre said the certification helped her break into an industry usually run by the "good ol' boys" club.

"It was able to help me get in the door and prove myself," she said.

McIntyre isn't sure how rolling back or even getting rid of the DBE program -- which Congress created in 1983 -- would impact her business. It's so early in the process, she said, that it isn't clear if she's lost job opportunities yet.

But even without total clarity, the effects in some ways are becoming apparent.

When INDOT publishes a list of contractors that have indicated interest in bidding for a project, each job lists a DBE goal. Typically, the goal is around 10%, which is the most recent recommendation from the federal government under former President Joe Biden.

But the lawsuit has changed that. Now, projects that the two suing companies say they're interested in all show the same DBE goal: 0%.

On the most recent list of jobs, only nine of the 36 projects receiving federal money had a DBE goal.

With so much uncertainty, many DBE business owners have formed their own online communities, sharing information and support.

One Facebook group -- DBEs of America -- has more than 370 members.

The founder, Stephanie Allen, said she intended for the group to serve Indiana business owners. But interest from others across the country became clear with so much worry about the future of their businesses.

Allen posts updates from the Kentucky court case and organizes Microsoft Teams calls with other business owners.

"There's a reason why this program was put in place," Allen said. "And there's a reason why it needs to stay in place."

The goal of the program is to prevent discrimination. But Allen said this is far from a handout.

Allen's company, Crossroads Highway Products, supplies expansion joint material. In order to get her DBE certification, she had to meet a host of requirements. Officials visited her site in Mooresville, and she had to show that she has a warehouse. Allen also had to demonstrate a good work history and give a list of contractors she's done business with.

"I love what I do," Allen said. "I don't want this program to be taken away. There's just so many people who depend on it to be considered for projects."

As for the future of her business, Allen is staring down the same foggy path as everyone else.

Allen has a few jobs lined up already, but after that?

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