The recent happenings of federal Diversity, Equity, and Inclusion (DEI) programs have raised questions about the impact on small business certifications. Let’s be clear: this change does not affect certifications for Minority, Women, or Veteran-Owned businesses in any way. The programs that support and certify small businesses remain intact at the federal, state, local, and municipal levels.
On January 20, 2025, an executive order titled “Ending Radical And Wasteful Government DEI Programs And Preferencing” was issued, directing federal agencies to terminate DEI-related offices, positions, and initiatives. The order eliminates DEI and “environmental justice” offices, Chief Diversity Officers, and equity-related grants or contracts within the federal government.
Following this, on January 21, 2025, another executive order, “Ending Illegal Discrimination And Restoring Merit-Based Opportunity,” rescinded long-standing affirmative action requirements for federal contractors. This directive removes previous equal employment opportunity obligations, directing contractors to cease compliance with the former regulatory framework within 90 days.
While these policy changes mark a shift in federal hiring and procurement strategy, they do not impact federal, state, or local certification programs. The government still has legally mandated set-aside goals to award contracts to small businesses, including those owned by minorities, women, and veterans. With DEI programs gone, agencies will depend even more on these certifications to ensure diverse participation in government contracting.
The set-aside programs remain a core part of the government’s contracting process, ensuring that billions of dollars flow to certified small businesses. This means businesses with any State or Federal certifications still have access to lucrative contracting opportunities without disruption.
At Government Services Exchange (GSE), we help businesses navigate the certification process to take full advantage of government contracts. With federal agencies shifting away from DEI initiatives, we anticipate a greater reliance on small business certifications to meet contracting goals. If you want to get your business certified, renew your certification, or expand your government contracting opportunities, GSE is here to help.
Our team specializes in MBE, WBE, VOSB, SDVOSB, and HUBZone certifications, ensuring businesses meet the necessary requirements and position themselves for success in the government marketplace.
Although DEI programs are changing, the opportunities for minority-, women-, and veteran-owned businesses remain intact. Certification programs are stronger than ever, and government agencies will continue awarding contracts to certified businesses to meet their set-aside goals. If you’re a small business owner considering certification, now is the perfect time to secure your spot in the federal contracting arena. Let Government Services Exchange help you get there.
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