Coming under scrutiny, the Virginia General Assembly has passed legislation requiring state agencies to prioritize small businesses owned by women, minorities, and service-disabled veterans in government procurement contracts.

House Bill 61, sponsored by Delegate Jeion Ward, establishes the Small SWaM Business Procurement Enhancement Program, setting an aggregate goal of 42% of state procurement contracts to be awarded to Small, Women-owned, Minority-owned, and Service Disabled Veteran-owned businesses. State agencies would be required to increase their share of contracts to SWaM businesses by no less than 3% annually until the 42% aggregate is reached.

The bill also creates a set-aside program reserving all procurement contracts valued up to $100,000 exclusively for SWaM businesses. For new capital outlay construction contracts awarded to non-SWaM businesses, the contract holder must hit a 50% subcontracting target with SWaM businesses.

Failure to meet that target requires a written justification, and those found to have not acted in good faith could face debarment from state contract bidding for at least one year. State agencies would also be required to submit yearly compliance reports. (RELATED: Virginia’s Anti-Deepfake Election Bill Could Cost Violators $25,000)

Critics have characterized the bill as legalizing racial and sexual discrimination against white male business owners, who they argue are the only group explicitly disadvantaged by the measure. Supporters counter that white men who are service-disabled veterans qualify under the program’s SWaM designation.

The bill passed the House of Delegates 64-33 and the State Senate 21-19, largely along party lines. It now heads to Gov. Abigail Spanberger’s desk for signature or veto. Those wishing to weigh in can contact the Governor’s office of Constituent Services.

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