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Steven D. Anderson Calls on Supreme Court to End ‘Race Neutral’ Discrimination in Federal Contracting

Renan Filho Por Renan Filho · 2026-11-06

Legal scholar Steven D. Anderson argues that current federal contracting rules, though ostensibly race-neutral, perpetuate systemic exclusion of minority-owned businesses and require Supreme Court intervention to align with constitutional guarantees.

**Lead**

A prominent legal voice is urging the U.S. Supreme Court to address what he describes as a new form of discrimination embedded within federal contracting programs. Steven D. Anderson, a legal analyst and scholar known for his work on constitutional law and economic opportunity, published a detailed legal brief arguing that so-called “race neutral” criteria used by federal agencies are effectively locking minority-owned businesses out of billions of dollars in government contracts. Anderson contends that the current framework, designed to survive strict scrutiny after the Court’s 2023 decision in *Students for Fair Admissions v. Harvard*, has instead created a system of de facto exclusion that demands judicial correction.

**Context**

The debate over federal contracting has intensified since the Supreme Court’s landmark ruling that struck down race-conscious admissions in higher education. In the wake of that decision, many federal agencies—including the Department of Transportation, the Small Business Administration, and the Department of Defense—revised their contracting programs to rely on “race neutral” criteria such as geographic location, firm size, and industry sector. The stated goal was to promote diversity without explicitly considering race. However, Anderson and other critics argue that these neutral criteria, when applied to a historically segregated marketplace, simply replicate the same disparities they were meant to correct.

According to publicly available data from the Federal Procurement Data System, minority-owned businesses receive a disproportionately small share of federal contract dollars relative to their presence in the economy. For example, Black-owned firms represent roughly 2 percent of all employer businesses but capture less than 1 percent of federal prime contract spending. Hispanic-owned firms, which account for about 6 percent of businesses, receive only about 3 percent of contract dollars. These figures have remained stubbornly stable for years, even as agencies have shifted toward race-neutral approaches.

Anderson’s argument centers on the legal doctrine of “disparate impact,” which holds that a policy that is neutral on its face may still be discriminatory if it produces a disproportionate adverse effect on a protected group. While the Court has recognized disparate impact in employment and housing cases, its application to government contracting remains unsettled. Anderson asserts that the current race-neutral frameworks are not truly neutral because they fail to account for the structural barriers that minority firms face, including unequal access to capital, bonding, and established supply chains.

**Analise**

The implications of Anderson’s call for Supreme Court action extend far beyond the narrow world of federal procurement. If the Court were to take up the issue, it could redefine the legal boundaries of permissible government action to address racial inequality. A ruling that race-neutral criteria can still be unconstitutional if they perpetuate discrimination would mark a significant expansion of civil rights law. Conversely, a ruling that upholds the current race-neutral approach could effectively close the door on any meaningful federal effort to close the racial wealth gap through contracting.

Economists and policy analysts have long noted that federal contracting is one of the most powerful tools the government has to promote economic inclusion. The federal government spends more than $600 billion annually on contracts for goods and services. For minority-owned businesses, access to even a small fraction of that spending can be transformative, providing the revenue and experience needed to scale operations, hire employees, and build generational wealth. When those opportunities are systematically blocked, the economic consequences ripple through entire communities.

Anderson’s brief also raises a procedural question: whether the Court should revisit the standard of review for race-neutral policies that produce racially disparate outcomes. Currently, such policies are reviewed under the rational basis test, which is highly deferential to the government. Anderson argues that when a policy is adopted specifically as a substitute for a race-conscious program that was struck down, courts should apply a more searching form of scrutiny to ensure that the substitute is not merely a way to achieve the same discriminatory result through different means.

**Fontes**

This article is based on the legal analysis presented by Steven D. Anderson in his public commentary and published legal briefs, as well as publicly available data from the Federal Procurement Data System and the U.S. Census Bureau’s Annual Business Survey. Additional context was drawn from the Supreme Court’s opinion in *Students for Fair Admissions v. Harvard* (2023) and from economic reports by the Minority Business Development Agency and the Government Accountability Office.

Renan Filho
Sobre o autor
Renan Filho
Editor-Chefe do FORTIS News

Editor-chefe do FORTIS News. Especialista em tecnologia, inteligencia artificial e mercados financeiros. Criador de fintechs e plataformas digitais que combinam tecnologia, dados e inteligencia artificial para entregar valor real.