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# The quiet dismantling of government contracting programs and how minority-owned businesses are fighting back
- URL: https://www.revenuerulebreaker.com/the-quiet-dismantling-of-government-contracting-programs-and-how-minority-owned-businesses-are-fighting-back/
- Published: 2026-08-30T10:30:19.000Z
- Updated: 2026-08-30T10:30:19.000Z
- Description: Government contracts offer stable income and growth opportunities but it's an insider's game you need to learn how to play
- Author: Lex Roman
- Tags: Thanks, I Hate It, Small Business News, #top-story

If you find yourself traveling through Atlanta's Hartsfield-Jackson airport, you might stumble upon a local restaurant named Paschal's. It's a plain looking establishment with a warm buffet full of soul food in front. You wouldn't think much about how this place came to be while enjoying their famous Southern fried chicken, but their existence takes us back decades into the fight for Black-owned businesses to simply have the opportunity to do business with the city.

Paschal's was founded in 1947 as a small sandwich shop in Atlanta's Historic West End by two brothers, James and Robert Paschal. They quickly [grew from there](https://www.georgiaencyclopedia.org/articles/arts-culture/paschals-restaurant/?ref=revenuerulebreaker.com), expanding their restaurant, adding a motel, and opening a jazz club. Their venue—La Carrousel—was [the only nightclub in the city](https://en.wikipedia.org/wiki/Paschal's%5FLa%5FCarousel?ref=revenuerulebreaker.com) to allow Black patrons at that time. By the 70s, business and living conditions were finally starting to change, thanks to decades of civil rights work, much of which happened at Paschal's. Their restaurant was a favorite gathering spot of Dr. Martin Luther King, Jr and his colleagues. *Ebony* magazine dubbed Atlanta [the Black Mecca in 1971](https://atlantastudies.org/2025/07/24/afro-self-determinism-and-the-rise-of-the-black-mecca/?ref=revenuerulebreaker.com), citing the success of the Paschal brothers as part of the progress. Maynard Jackson became [Atlanta's first Black mayor](https://en.wikipedia.org/wiki/Maynard%5FJackson?ref=revenuerulebreaker.com) a few years later. 

One of Mayor Jackson's key projects was expanding and updating the airport, hence why it bears his name. Along with that airport development came new contracts for vendors to service the facility and Paschal's was well-positioned to be part of it. They linked up with a Memphis-based corp named Dobbs House, who were already involved in the airline business nationwide, to pitch a joint venture running food, beverage and retail at the Atlanta airport. Together, they [won the 15 year contract](https://www.georgiaencyclopedia.org/articles/arts-culture/paschals-restaurant/?ref=revenuerulebreaker.com). It was one of the largest government contracts ever won by a minority-owned business. Paschal's would go on to [run concessions at 18 airports](https://paschalsatlantaairport.com/?ref=revenuerulebreaker.com#heritage) at the height of their operation and to win additional contracts with Hartsfield-Jackson airport. You can still taste a piece of their legacy if you stop by Concourse B.

![Photos of Paschal's journey from 1978 to today](https://www.revenuerulebreaker.com/content/images/2026/08/James-and-Robert-Paschal-in-their-restaurant.png)

Photos of Paschal's journey from 1978 to today

I wasn't around to interview James and Robert Paschal about the moment when they signed that first contract but I imagine it felt like taking one big whack at a racist system that was only going to keep crumbling down. Yet, here we are 46 years later, plastering over all the doors they pried open. 

## The elimination of minority business enterprise programs 

The Paschals were trailblazers in what would become known as minority business enterprise programs (MBE). Governments award millions of dollars in contracts to provide goods and services every budget cycle but, until these MBE programs came about, nearly all of that money went to companies led by white men. The federal [Office of Minority Business Enterprise](https://www.mbda.gov/node/302?ref=revenuerulebreaker.com) was opened in 1969 after President Nixon signed an executive order to address income inequality. Cities and states followed, creating local offices to assist historically under-resourced business owners. Until Trump resumed office in 2025, the United States had thousands of MBE programs supporting minority-owned, women-owned and veteran-owned businesses in sourcing and securing government contracts. 

Even with all those programs in place, these so-called "disadvantaged businesses" were only winning [10% of federal contracts](https://www.thirdway.org/report/vital-signs-the-health-of-minority-owned-small-businesses?ref=revenuerulebreaker.com), as of just a few years ago. The game was still rigged, but at least you had a place to get information and governments had minority contracting targets to hit. Now, we are facing the sudden closure of these MBE offices as Trump and his cronies take aim at anything remotely connected to diversity, equity and inclusion.

Earlier this month, Kansas City [pulled the plug](https://www.communityvoiceks.com/2026/08/17/kcmo-ends-minority-women-business-program/?ref=revenuerulebreaker.com) on their Minority- and Women-Owned Business Enterprise program after 45 years. Charlotte [closed](https://www.doa.nc.gov/news/press-releases/2026/07/09/state-budget-eliminates-program-nc-historically-underutilized-businesses?ref=revenuerulebreaker.com) their Office of Historically Underutilized Businesses (HUB) in July. Orlando [suspended](https://www.orlandoweekly.com/news/orlando-moves-to-replace-minority-business-program-to-comply-with-trump-administration/?ref=revenuerulebreaker.com) their MWBE program last summer. So did [Fort Worth](https://fortworthreport.org/2026/03/15/contractors-seek-new-small-business-certification-after-fort-worths-dei-goals-dropped/?ref=revenuerulebreaker.com). There's legislation [moving through congress](https://www.govexec.com/management/2026/05/legislative-proposal-would-eliminate-contracting-preferences-minority-women-owned-businesses/413393/?ref=revenuerulebreaker.com) to cement Trump's executive order prohibiting these kinds of initiatives, but it hasn't become law yet. Cities and states are just getting a head start.

![](https://www.revenuerulebreaker.com/content/images/2026/08/The_Atlanta_Constitution_1989_02_25_47.jpg)

![](https://www.revenuerulebreaker.com/content/images/2026/08/The_Atlanta_Voice_1983_03_26_1.jpg)

![](https://www.revenuerulebreaker.com/content/images/2026/08/The_Atlanta_Constitution_1989_01_25_1.jpg)

Newspaper clips from the Atlanta Voice and the Atlanta Journal-Constitution in 1983 and 1989 about the city's MBE program

Entrepreneur Christine Edwards Pitkin brought this to my attention via Threads in the wake of the Charlotte HUB office elimination. Christine has helped [dozens of Charlotte-based business owners](https://www.threads.com/@missedwardsclt/post/Dag3NyalI5H?xmt=AQG0I09pFDyUUUZLHXzrAaf6xgmt%5F2uZFt8sNC7PD6QvRQ&ref=revenuerulebreaker.com) learn about their local program and win business saving government contracts. She recently [wrote an op-ed](https://qcnerve.com/opinion-north-carolina-just-closed-the-door-on-my-business-and-thousands-like-it/?ref=revenuerulebreaker.com) about why the eradication of these programs means less minority-owned businesses will survive longterm. In her piece, Christine talks about the doors that opened she was able to get as a HUB certified business. She was added to the state vendor list and invited "to subcontract on two large-scale municipal consulting projects in Charlotte." Her experience with HUB showed her how powerful the relationships, training and revenue could be when you worked closer with the government and she started coaching other entrepreneurs on how to get access to these opportunities.

It's not that businesses like Christine's can't take government contracts anymore but we've traveled back to the time to before the Paschals' won their landmark deal. The odds are substantially worse for minority-owned business owners going after these contracts now. The certification process is more vague and prime contractors—the companies that typically win government projects—no longer have to meet targets by bringing in a diverse range of subcontractors, which means less minority-, women- and veteran-owned small businesses will be offered starter opportunities. 625 companies [who were registered](https://www.qcitymetro.com/news-buzz/new-nc-law-forces-charlotte-to-overhaul-contracting-program-52ae210f?ref=revenuerulebreaker.com) as a minority- or woman-owned business in Charlotte all have to re-certify themselves in the city's new "neutral" small business program. Now, they're competing in a bigger pool with companies who have more likelihood of getting contracts over them due to relationships or monetary resources.

"With the [new law](https://www.doa.nc.gov/news/press-releases/2026/07/09/state-budget-eliminates-program-nc-historically-underutilized-businesses?ref=revenuerulebreaker.com) that passed, cities in North Carolina will no longer track procurement along race and gender lines. My concern is that 'we measure what matters.' This sends a dark signal for business owners like me who relied pretty heavily on government procurement programs, especially during COVID, when small businesses were needed the most," Christine wrote me in a DM.

It's bad. It's really bad. Programs are closing every month. Business owners are scrambling to comply with changing laws. But people aren't taking these rollbacks as the final word. Coalitions are assembling to save MBE programs and what they're doing is working.

## Who's leading the fight to save MBE programs

Right now, the shutdowns of the MBE programs are on flimsy legal ground. Governors and local leaders are using Trump's executive order as an excuse to fast track the removal of these programs and they're not prepared for much pushback.

But the organizations that are fighting back are winning. St. Louis [got their mayor to restart](https://www.stlamerican.com/news/local-news/mayor-spencer-reverses-course-restarts-minority-business-program/?ref=revenuerulebreaker.com) their MWBE (minority- and women-owned business enterprise) program after threatening to shut it down. What made that possible was [the policy expertise](https://www.linkedin.com/posts/last-september-st-louis-mayor-cara-spencer-share-7475174421402484736-OeTE/?ref=revenuerulebreaker.com) of Atlanta-based law firm Griffin & Strong, brought in by the St. Louis Development Corporation. They were able to navigate around the landmines the feds are targeting and draft more specific policy recommendations for the city that fall within current guidelines while still prioritizing minority-owned businesses.

[Griffin & Strong](https://www.gspclaw.com/?ref=revenuerulebreaker.com) was co-founded by Delmarie Griffin and Rodney K. Strong who both have deep backgrounds in the public sector. Griffin worked for the the City of Atlanta Department of Procurement for a decade. Strong developed Atlanta's Minority and Woman Business Enterprise (MWBE) program alongside Mayor Jackson and his successor, Andrew Young, back in the 80s and 90s. They turned their joint experience into a law firm that assists governments with policy consulting and supports minority-owned businesses in jumping through procurement hoops. They've worked with over 100 jurisdictions across the United States.

![Story about St. Louis' MBE restart in The St. Louis American](https://www.revenuerulebreaker.com/content/images/2026/08/Untitled-design---2026-08-30T000802.616.png)

Story about St. Louis' MBE restart in The St. Louis American

In a conversation [with Black Enterprise](https://www.blackenterprise.com/video/fighting-for-black-businesses/?ref=revenuerulebreaker.com), Attorney Strong said the public contracts being won by Black-owned businesses in the city of Atlanta were "less than one tenth of a percent" before Mayor Jackson took office in 1974\. What's happening now under Trump is one of many legal challenges he's fought off since he was recruited out of college to develop Atlanta's MBE program. When asked by the moderator what small businesses can do to survive this time, his recommendation was to align yourself with organizations that have been supporting minority-owned businesses in your region or in your industry.

The [Minority Business Legal Defense Fund](https://mbeldefwatchdog.org/?ref=revenuerulebreaker.com) (MBELDEF) is one he mentioned. They recently had [a small win when a case](https://mbeldefwatchdog.org/court-rules-for-small-businesses-dismisses-case-threatening-disadvantaged-business-enterprise-program/?ref=revenuerulebreaker.com) challenging the Disadvantaged Business Enterprise program (DBE) at the US Dept of Transportation was dismissed. MBELDEF does advocacy, education and organizing work from a legal perspective focused on minority businesses. Another organization involved in that case is [Women First](https://www.womenfirstnlc.com/?ref=revenuerulebreaker.com), which exists to protect and expand DBE programs nationwide.

Over in Texas, the Global Black Economic Forum [won a temporary injunction](https://gbef.com/post/gbef-wins-temporary-injunction?ref=revenuerulebreaker.com) blocking changes to the state's HUB program. The state comptroller decertified thousands of minority- and women-owned businesses at the beginning of this year for no clear reason. Alphonso David, who is the co-lead counsel and the President of GBEF, argues that Texas politicians are trying to make moves without going through the legislative process to change the laws. The case goes to trial in November. In addition to litigation and legal advocacy, the Global Black Economic Forum hosts programming, conducts research and offers education for Black business owners.

There's also industry-specific minority business organizations like the [National Minority Supplier Development Council](https://nmsdc.org/?ref=revenuerulebreaker.com) which is for businesses that supply goods, the [National Association of Minority Contractors](https://namcnational.org/?ref=revenuerulebreaker.com) which is for construction, and the [Minority Owned Transportation Association of America](https://www.linkedin.com/company/minority-owned-transportation-association-of-america/?ref=revenuerulebreaker.com) which serves transportation contractors. Some of these organizations are involved in coalition work along with law firms to save local programs and others can replace some functions of local programs, like assisting business owners with obtaining certifications.

## What you can do if you're seeking government contracts

Business owners previously certified under a HUB, MBE/MBWE or DBE program have to recertify their eligibility for government contracts. Vyki Englert, who founded the civic tech agency [Compiler](https://compiler.la/?ref=revenuerulebreaker.com) (which has been behind [the expansion of tap-to-pay for transit](https://compiler.la/blog/2026/launching-cal-itp-benefits/?ref=revenuerulebreaker.com) across California) shared with me the process of recertifying as a Disadvantaged Business Enterprise this year.

Previously, being a woman, being Latino or being a veteran made you a disadvantaged business owner automatically. Now, you have to prove a disadvantage without those identity factors. For Vyki, this meant 10-15 years of tax returns, documentation about family history and evidence of taking time away from work to support family. She also had to write an essay explaining her background, but she said it was rejected until she brought forward tangible examples like the taxes, pay stubs, and public program statements. Lawyers can help you gather this material and craft your narrative—this is part of what Griffin & Strong does—and some might be available pro-bono through minority business organizations.

It's a huge pain in the ass and it's a process designed to keep minority- and women-owned businesses out of these rooms, but it's also potentially a chance to help reshape your local program. "The silver lining here maybe is that we're having more conversations about what small businesses need," Vyki said. The example she gave was LA County paying certified small businesses within 14 days of invoice receipt. That's not a solution specifically for minority businesses, but it's one that certainly helps them stay in operation. 

Rodney Strong told business owners in the Black Enterprise session to get ahold of previous contractor information for types of contracts you want. He said you can make an [open records request](https://www.foia.gov/how-to.html?ref=revenuerulebreaker.com) to see the contract, the bid amount, who else bid for it, and the [bid tabulation sheet](https://www.procore.com/library/bid-tabulation?ref=revenuerulebreaker.com) to refine your pricing and proposal. Strong also recommended paying close attention to government budgets, major projects they're undertaking or what their priorities are for the coming year. "Don’t be discouraged that the programs that were designed to give us an opportunity have been disfavored. You still have an opportunity to go in the front door and present your credentials," Strong said.

---

Public contracts aren't just for big, established corporations. Governments hire out everything from website design to financial audits to employee training programs. If you can stomach learning the process for procurement—which has remained long and painful even with the invention of MBE programs—you can bring in some major capital and secure long-lasting client relationships. It's business saving money for many entrepreneurs and it's an expansion opportunity for others, like it was for the Paschal brothers.

You can apply for bids solo, but if you're just getting started, many entrepreneurs get in the game by being a subcontractor on the bid of a [prime contractor](https://www.sba.gov/counseling/prime-and-subcontracting/?ref=revenuerulebreaker.com). The more specialized your skills, services or products are, the easier it is to get into their good graces, but using Attorney Strong's advice, you can learn who these prime contractors are with public records requests and you can begin building relationships with them.

We're far enough away from the origination of these MBE programs to feel the pain of their overnight evaporation. But we're not so far that the community infrastructure that created them is gone. Many of the same people and organizations who fought to bring more equity into government contracting are still with us today. They offer us their battle-tested solutions—the most important of which is that no business owner should navigate this alone. Community support is critical to your survival and the coalition you need to plug into or lean on might already exist. Partnerships with the public sector are beneficial, but for minority-owned businesses, it is the organizations that have never needed the government's permission who continue to make these opportunities possible.

***Have you done a government contract? Want to? Share your experience in the comments.***