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Indiana Governor Mike Braun will make a significant announcement regarding The Child Care and Development Fund
Source: Indiana Governor Mike Braun / Indiana Governor Mike Braun

INDIANAPOLIS — Gov. Mike Braun is ending Indiana’s race- and sex-based contracting preferences, saying state contracts should be awarded based on merit, not race or gender.

The move follows a legal opinion from Attorney General Todd Rokita, who says parts of the state’s Minority and Women Business Enterprise program violate the U.S. Constitution’s Equal Protection Clause.

Braun says the change creates a level playing field where every Hoosier has the same opportunity to compete for state contracts.

The program, created in 1983, set goals for awarding state contracts to minority- and women-owned businesses. Rokita says those requirements are unconstitutional because they give preference based on race or sex.

The opinion says Indiana can still give contracting preferences to veteran-owned businesses. It also says the state can create new programs that help small businesses, veteran-owned businesses, and Indiana-based companies, as long as they don’t consider race or gender.