Missouri Governor Mike Parson has officially revoked an executive order aimed at establishing modest purchasing goals for state agencies regarding vendors owned by minorities and women, citing “legal concerns” as the reason behind this decision.
On October 23, Governor Parson rescinded a total of 177 executive orders, many of which had been in effect since the 1980s. He labeled these orders as no longer “necessary or applicable,” according to reports from the St. Louis Post-Dispatch.
A prior executive order arranged by former Democratic Governor Jay Nixon in 2015 set forth goals mandating that state agencies aim to procure 10% of goods and services from minority-owned businesses and also 10% from businesses owned by women.
Some local organization leaders have expressed concerns regarding the potential ramifications of this reversal. Nimrod Chapel Jr., the president of the Missouri NAACP, articulated that the state is conveying a “clear signal” to those who have historically faced challenges in participating in procurement processes, stating, “And that signal is: no need to apply.”
The governor’s office has indicated that recent court decisions prompted the decision to scrap Nixon’s executive order, although Parson’s spokesman, Johnathan Shiflett, did not provide further details.
Recent significant legal developments seem to have influenced this decision. Last year, the U.S. Supreme Court invalidated affirmative action policies in college admissions, establishing that race cannot be considered, compelling educational institutions to explore alternative avenues for fostering diversity.
Additionally, a federal judge in Texas ruled earlier this year that a long-standing U.S. agency designed to support minority-owned businesses must provide services without regard to race, siding with white business owners who alleged discrimination. Furthermore, in September, an Atlanta-based venture capital firm, Fearless Fund, retracted an initiative that supported startups owned by Black women due to legal challenges.
Shiflett noted in an email communication that state laws still require certification for businesses owned by minorities or women, and there remains an obligation to create a workforce plan that reflects the state’s diverse population.
He added that revoking these executive orders “provides necessary flexibility” for state operations. However, David Jackson, a spokesman for the African American Business and Contractors Association in St. Louis, voiced that this action could deter local entities from upholding their own objectives regarding minority hiring.
Jackson emphasized the seriousness of this issue for small Black- and women-owned businesses, stating, “This is going to be very relevant with the next administration. If they see the same thing that Parson sees, these companies are in trouble.”
Historically, Missouri has struggled to meet these 10% procurement targets even while the regulations were intact. A 2022 state report indicated that only 5% of contract spending was allocated to minority-owned firms, while just 4% went to female-owned businesses.