New York State has extended its Minority- and Women-Owned Business Enterprise (MWBE) program for another three years, through July 1, 2028. The reauthorization, enacted as Part KK of the Fiscal Year 2025–26 budget bill signed on May 8, preserves all existing rules governing eligibility, certification, and participation. The law had been set to expire on July 1, 2025, but the new budget legislation ensures continued support for MWBEs in state contracting without any major structural changes.
At a time when diversity initiatives and government preference programs face increased scrutiny at the federal level, New York’s legislation maintains the status quo. The extension makes no changes to the existing eligibility standards or utilization requirements for MWBE participation. Nor does it alter the procedures for certification through the Empire State Development, Division of Minority and Women’s Business Development (the “Division”), the agency responsible for administering the program. All current processes regarding certification, waivers, and enforcement remain unchanged.
While the core structure of the program remains intact, the legislation includes two notable provisions beyond reauthorization.
Policy Study Mandate
The legislation requires the Director of the Division to commission a policy study “analyzing potential ways to improve the effectiveness of the state minority and women-owned business enterprise program in order to better help minority and women-owned businesses.” This replaces the prior statutory requirement for a disparity study, which was completed in 2024. The study assessed whether a gap existed between the availability of qualified MWBEs and their actual participation in State contracts. The newly required policy study will focus on the programmatic elements of the law and must be delivered to the Governor and Legislature by May 1, 2027.
Increased Discretionary Procurement Thresholds
The reauthorization also raises the discretionary purchasing thresholds for both MWBEs and Service-Disabled Veteran-Owned Businesses (SDVOBs) from $750,000 to $1.5 million. This change is aimed at increasing the number and value of non-competitive procurement opportunities available to MWBEs and SDVOBs. The legislation also expands and clarifies which public authorities are authorized to use these enhanced discretionary thresholds. Additionally, agencies and authorities must now annually report the participation rate and percentage of total contract dollars utilizing MWBEs and SDVOBs, as well as the number of contracts, commodities, services, and purchases awarded to these businesses compared to the prior year.
What This Means for MWBEs
Reauthorization of the program is a reaffirmation of New York’s commitment to driving MWBE participation in public contracting. The extension of Article 15-A, combined with increased discretionary procurement authority, expands the potential for certified MWBEs to access state contracting opportunities.
While federal scrutiny of diversity, equity, and inclusion (DEI) initiatives continues to grow, the reauthorization reflects the continuing political support for MWBE and SDVOB contracting opportunities at the State level. The MWBE program remains a powerful vehicle for growth and opportunity in the public procurement space and ensures that a significant portion of state expenditures continues to be earmarked for certified firms. The extension also reinforces the program’s role as a key compliance framework, ensuring that a defined portion of state expenditures remains allocated to certified MWBE and SDVOB firms.
How We Can Help
Hancock Estabrook’s MWBE Services Team will continue to monitor relevant legislative and regulatory developments. We regularly advise and represent MWBEs in assessing eligibility, preparing and submitting certification applications to the Division, and appealing adverse determinations. We also provide strategic counsel to state contractors on MWBE compliance and utilization requirements. Please feel free to contact us with any questions or for more information.