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Philadelphia replaces race-based contracting with local business focus due to Supreme Court ruling, aiming for 25% local spending.
Philadelphia Mayor Cherelle Parker has replaced the city’s diversity-focused contracting program with a new emphasis on small and local businesses, citing legal concerns after a 2023 Supreme Court ruling that limited race-based affirmative action.
The change, effective immediately, shifts focus from minority-owned business quotas to firms with significant local employment, aiming to create a legally defensible and sustainable procurement system.
While no new racial participation targets were set, the city aims to allocate about 25% of its $1 billion procurement budget to local businesses.
The Office of Economic Opportunity is now part of a new Office of Business Impact and Economic Advancement.
Officials say the overhaul addresses past failures in support and payment delays, ensuring broader economic opportunity without relying on contested diversity metrics.
Filadelfia reemplaza la contratación basada en la raza con un enfoque de negocios locales debido al fallo de la Corte Suprema, con el objetivo de un 25% de gasto local.