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US highway program's use of race, gender in contracting is unlawful, judge says

A U.S. judge ruled that the U.S. Department of Transport's consideration of race or gender when granting billions of dollars in federal highway and transit task financing reserved for disadvantaged small companies is unconstitutional. U.S. District Judge Gregory Van Tatenhove in Frankfort, Kentucky, on Monday ruled that a federal program enacted in 1983 that treats organizations owned by racial minorities and females as presumptively disadvantaged and qualified for such financing violated the U.S. Constitution's equivalent protection guarantees.

The court is acutely familiar with the previous discrimination that certain groups of individuals have faced in this country, Van Tatenhove wrote. And the court makes certain that the federal government has nothing but good intents in attempting to fix past wrongs.

But Van Tatenhove, an appointee of Republican previous President George W. Bush, said the federal government can not. categorize people in ways that breach the principles of equal. security in the U.S. Constitution. He relied in part on a ruling last year by the U.S. Supreme. Court, which has a 6-3 conservative majority. The ruling. effectively restricted affirmative action policies long utilized in. college admissions to raise the number of Black, Hispanic and. other underrepresented minority students on American schools.

The judge obstructed the Transportation Department from relying. on race or gender when considering contracts quote for by 2. business that sued last year over the policy, Mid-America. Milling Business and Bagshaw Trucking, which operate within. Kentucky and Indiana.

A spokesperson for the department said it will continue to. the defend the program as the case moves on but will comply. with the court's ruling in the meantime.

The judgment marked the current instance of a court obstructing a. federal program designed to benefit minority-owned businesses. following the Supreme Court's ruling. In March, a judge in a different case barred a federal firm. called the Minority Organization Development Company entrusted with. offering assistance to minority-owned businesses from turning. away candidates based on race.

Since 1983, Congress has licensed the Disadvantaged. Business Business program, which needs the Department of. Transport to ensure at least 10% of funding for highway and. transit projects are spent on disadvantaged organizations. It was reauthorized in 2021 through Democratic President Joe. Biden's signature Facilities Investment and Jobs Act, which. set aside more than $37 billion for that purpose.

While any company can certify as socially and economically. disadvantaged, Black, Hispanic and specific other racial groups. together with women were presumed disadvantaged.

The complainants argued the program victimized. other racial groups, such as white individuals, and violated the. Constitution's Fifth Modification.

(source: Reuters)