In February of 2024, the Appellate Law Center blog posted about the announcement from Governor Murphy and State Treasurer Muoio concerning a “comprehensive statewide disparity study examining public contracting opportunities” for Minority and Women-Owned Business Enterprises (M/WBEs). The 221-page study, which reviewed and examined statewide procurement data from 2015 to 2020, identified a “statistically significant disparity” both in the awarding of public contracts to M/WBEs, and in the value of those contracts awarded. In an effort to address and resolve these disparities, the New Jersey Legislature advanced a wide-ranging package of bills last September intended to make the public procurement process more accessible. At his annual State of the State Address last month, Governor Murphy called on the Legislature to enact the legislative package, characterizing “this step [as] not just about addressing a legacy of exclusion,” but also to “give a leg up to our local, small business owners — instead of leaving them behind.”
Less than one week later, President Trump issued a pair of executive orders entitled Ending Illegal Discrimination and Restoring Merit-Based Opportunity and Ending Radical and Wasteful Government DEI Programs and Preferencing. The former, which the White House has described as “the most important federal civil rights measure in decades,” rescinds all diversity, equity and inclusion (DEI) and diversity, equity, inclusion and accessibility (DEIA) practices and programs across all federal departments and agencies, while the latter directs the coordinated dismantling of all DEI, DEIA and “environmental justice” offices and positions, the termination of “equity-related” grants and contracts, and the removal of “DEI or DEIA performance requirements for employees, contractors or grantees.” During his inaugural address, President Trump vowed to “end the government policy of trying to socially engineer race and gender into every aspect of public and private life,” and to “forge a society that is colorblind and merit-based.”
The trickledown impact that these and other executive orders may have on states like New Jersey remains to be seen. At his annual address, Governor Murphy repeated his goal of “partnering with the Trump Administration where our priorities align.” “But just as importantly,” he said, “I will never back down from defending our New Jersey values — if and when they are tested.”
We will continue to monitor this and other related developments. Stevens & Lee’s Administrative Law and Government Contracts Group provides advice on all aspects of public procurement, and regularly assists clients in disadvantaged and small business certification and compliance. For questions regarding how these legislative changes may affect your business, or as to any other government contracting issues, please contact Maeve E. Cannon or Michael A. Cedrone from our Administrative Law and Government Contracts Group, or the Stevens & Lee attorney with whom you regularly work.
