For Immediate Release:
March 9, 2026
Contact:
Edward Blum
EdwardJayBlum@gmail.com
703-505-1922
American Alliance for Equal Rights Files Federal Lawsuit Challenging Race-Based Minority Supplier Certification Program
(Austin, Texas) – Today, the American Alliance for Equal Rights (AAER) filed a federal lawsuit in the United States District Court for the District of Kansas against the National Minority Supplier Development Council (NMSDC) and its Kansas-area affiliate, the Mountain Plains Minority Supplier Development Council, challenging the Councils’ race-based “Minority Business Enterprise” (MBE) certification program.
The complaint alleges that the MBE certification program violates the Civil Rights Act of 1866, 42 U.S.C. § 1981, by denying businesses the opportunity to contract on equal terms based solely on the race or ethnicity of their owners. AAER seeks declaratory and injunctive relief, as well as nominal damages.
The complaint is attached.
According to the complaint, the Councils have operated the MBE certification program for more than 50 years. The program sells an annual certification that provides access to proprietary resources, networking events, and supplier opportunities with large corporate members and sponsors. The Councils’ eligibility criteria, however, limit certification to businesses that are at least 51% owned, controlled, and managed by individuals in certain preferred racial or ethnic groups, excluding all other businesses from the certification program and the contracting opportunities it unlocks.
AAER brings the case on behalf of members who are ready and able to apply for the certification, pay the required fees, and meet all of the program’s non-racial requirements—yet are barred at the threshold because they do not satisfy the Councils’ race-based ownership criteria.
AAER’s lawsuit asks the court to declare the race-based eligibility rules unlawful and to permanently enjoin the Councils from using race or ethnicity in administering the MBE certification program, including through any criteria intended to function as racial proxies.
Edward Blum, President of the American Alliance for Equal Rights, said, “America’s civil rights laws promise equality, not a hierarchy of favored and disfavored races. When a private organization sells access to business opportunities but turns away applicants because of their race, it violates the plain text and purpose of federal law.”
Blum added, “AAER is bringing this case because contracts and commercial opportunities in the United States must be open to all Americans on equal terms, without racial gatekeeping. It is illegal and unfair to offer services to some, but not others, because of their skin color.
AAER is a 501 (c) (3) not-for-profit legal advocacy organization, since 2023, it has filed over 20 lawsuits challenging race-based policies, programs and statutes.