The Supreme Court voted 6-3 against affirmative action programs at colleges in June and some experts say the decision could put the Small Business Administration’s billions in federal contracting dollars at risk, the San Antonio Business Journal reported Wednesday.
The Supreme Court decision on affirmative action suggests that treating individuals based on their race violates the U.S. Constitution’s equal protection clause.
Experts say SBA’s 8(a) business-development program for small disadvantaged businesses and other government set-asides could end up being challenged at the Supreme Court.
“The 8(a) program, which has been challenged more than once, is probably going to be challenged,” said Tinley Carp, a government contracting attorney and partner at law firm Arnall Golden Gregory. “It all depends on how disadvantaged persons is defined. But in the regulations, one could argue it’s based on race.”
Carp said the 8(a) program intends to address the effects of bias or prejudice that have restricted groups from taking part in government contracting, a condition that could possibly result in a legal challenge.
The federal government allocates at least 5 percent of its contract spending to the 8(a) program each year. In 2022, nearly $70 billion in contracts went to small disadvantaged businesses.
