Federal judge strikes down race-based portion of Houston minority contracting programs

HOUSTON, Texas (KTRK) — A federal judge has ruled that race-based portions of contracting programs used by the City of Houston and the Midtown Management District violate the U.S. Constitution, marking what attorneys involved in the case describe as a first-of-its-kind decision against the programs.

U.S. District Judge David Hittner ruled that the programs’ provisions involving minority-owned businesses violate the Equal Protection Clause of the 14th Amendment.

“The decision held that the City of Houston and Midtown Management District’s race-based contracting programs violate the 14th Amendment of the Equal Protection Clause,” said Erin Wilcox, senior attorney with the Pacific Legal Foundation, which represented the plaintiffs.

The lawsuit was filed by Jerry and Theresa Thompson, a white couple who own two landscaping companies. They argued the city’s and Midtown Management District’s contracting programs, which require a percentage of contracts to be awarded to minority-owned businesses, placed them at a competitive disadvantage.

“These programs were making it difficult to compete on an equal footing,” Wilcox said.

Hittner ruled in favor of the Thompsons.

In a statement, Houston City Attorney Arturo Michel said the city will comply with the court’s ruling regarding existing and recently awarded contracts while any further court proceedings continue.

Houston City Council members said they were disappointed by the decision but indicated they remain committed to addressing disparities in public contracting.

“From what I understand, I am not happy with the ruling,” Council Member Joe Panzarella said.

Council Member Ed Pollard defended the city’s Minority and Women Business Enterprise program, saying it was created to help ensure minority-owned and small businesses have an opportunity to compete for city contracts.

Council members also pointed to a recently completed disparity study, which they said found continued gaps in contracting opportunities, and said they will continue looking for ways to address inequities within government contracting.