The New Jersey Legislature is pushing forward with efforts to end disparities faced by minority- and women-owned business enterprises (MWBEs) in state contracting. A recent Disparity Study, analyzing over 240,000 contracts from 2015 to 2020, revealed that these businesses remain significantly underrepresented. 

For example, Black-owned construction firms make up more than 9% of the state’s industry but secured only 0.014% of public contracts. Women-owned businesses also faced similar challenges, with those in professional services receiving less than 10% of available contracts despite comprising 38% of the sector.

In response, the Assembly Community Development and Women’s Affairs Committee has approved a 12-bill legislative package designed to address these inequities. 

The bill package proposes a variety of measures, such as mandating that state agencies and contractors make a good faith effort to increase MWBE participation, monitoring subcontractor activities, and providing tax credits to employers hiring individuals with disabilities.

Assemblywoman Shavonda Sumter, who chairs the committee, emphasized the need to reform the state’s procurement system, describing the current situation as an “opportunity locked out” for many MWBEs. 

The legislative package has garnered support from various stakeholders, including business leaders like Michele Siekerka, president of the New Jersey Business and Industry Association, who believes the bills represent a “good first step” in ensuring fair opportunities for all businesses.

The legislation now moves to the full Assembly, where it is expected to gain additional support, marking an essential step toward greater equity in New Jersey’s public contracting system.