COLUMBUS, Ohio (WCMH) -- Columbus officials are weighing a proposal to expand the city's business certification program to include more small companies as part of an effort to align with federal orders limiting race and gender initiatives.
The proposal comes as cities nationwide are grappling with a series of executive orders issued by the Trump administration this year that target diversity, equity and inclusion programs. Lara Baker-Morrish, a deputy city attorney, said during an Aug. 26 Columbus City Council hearing that the potential negative impact of running afoul of those orders includes "not only the loss of considerable federal funding, but also the potential for prison terms."
The city's Office of Diversity and Inclusion, which has long provided free business certifications for those owned by minorities, women, the LGBTQ+ community and veterans, would see the biggest changes. Under the proposal, the office would revise its certifications to include two new categories: Small Regional Business Enterprises, for eligible small businesses in the Columbus area, and Regional Business Enterprises, for those located anywhere in Ohio.
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Jason Jenkins, the office's director, said the new categories would maintain access for business owners to benefits like bid discounts, incentive credits, increased city contracting opportunities and participation in business development initiatives -- while basing eligibility on the size of the company instead of identity.
"To potentially be in compliance, we would have to stop setting those goals based on race and gender," Jenkins said during the August hearing, adding that the proposed changes would still cover a large portion of business already certified under the existing program. "Ninety-three percent of our certified businesses, currently, have the potential to be transferred over to the Small Regional Business program," he said.
Councilmember Nicholas Bankston, who chaired the hearing, emphasized that the proposal is not yet final.
"This is a proposal. Nothing is decided," Bankston said. "Our consideration of this proposal does not equate to the rollback of DEI initiatives, or us giving in to the demands of the current president and his administration. In actuality, these changes expand the work of the office and gives it more flexibility to serve our small business community."
Still, community concerns surfaced during the public testimony portion of the hearing. Gayle Saunders, a Black business owner whose firm, Saunders PR Group, is certified through the city's existing program, said she was "hoping to hear of specific legislative action that has happened against the city to precipitate this."
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"While the goal of modernizing language to supporting regional small businesses is commendable, we think that adding additional race-neutral frameworks risks reversing years of hard-fought progress," she said. "Race-neutral approaches remove that intentionality, leaving minority and women-owned businesses vulnerable to being overlooked once again."
In response, Baker-Morrish referenced a ruling from the Sixth Circuit Court of Appeals, which found that race- and gender-conscious programs must meet high constitutional standards under the 14th Amendment to be upheld. While Columbus was not involved in the case, she noted that "because the city of Columbus is located within the Sixth Circuit, the reasoning in that case would equally apply."
The debate comes after city officials first confirmed in May they were reviewing programs in light of shifting Trump administration orders. At the time, a spokesperson for Mayor Andrew Ginther said his administration "strongly disagrees" with federal directives, but was "working closely with the city attorney's office" to ensure compliance without compromising values.
Under Ginther's leadership, minority business participation in city contracts has grown from 8.4% in 2016 to 19.1% in 2024, representing more than $600 million in economic impact, according to the mayor's office.
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Bankston reiterated the city's commitment to inclusion, even in the face of legal and political pressure.
"Municipalities throughout this country, including ours, are being attacked by federal court systems that have shifted to targeting and criminalizing DEI work," he said. "As long as I sit in this seat, I remain committed to championing diversity, equity and inclusion, regardless of what form it takes. This is our moment to be intentional. Not just simply as a city, but as a society."
The proposal remains under review, and no vote has been scheduled.