The complaint, filed in Texas, names Mayor Zohran Mamdani, the Department of Small Business Services, and the Department of Education as defendants. Currently, New York City’s procurement process restricts preferential certification to businesses majority-owned by women or specific racial groups, including Black, Hispanic, Asian-Pacific, Asian Indian, and Native American entrepreneurs. Businesses owned by white men are ineligible for these specific advantages.

AAER president Edward Blum argues that the city’s policy directly ignores Supreme Court precedents regarding race-based government actions. The organization points to the city’s recently released 437-page Racial Equity Plan as evidence that the administration intends to expand rather than dismantle these preferences. The lawsuit seeks an injunction to halt the program, demanding that the city open all contracting opportunities to vendors regardless of the owner's background. This filing follows a similar legal victory in Houston, where a federal judge recently struck down a municipal minority contracting program due to constitutional concerns.