By Javar Juarez (CUBNSC) Columbia,SC- In a move that has sparked outrage and deep concern across South Carolina’s business and civil rights communities, the South Carolina House GOP Caucus has introduced H.3927, a bill that seeks to eliminate Diversity, Equity, and Inclusion (DEI) initiatives across state agencies, including the certification of minority-owned businesses. This legislative push, modeled after policies initiated by Donald Trump’s executive orders, has the potential to dramatically reshape state contract distribution, leading to what many believe will be a disproportionate benefit for white-owned businesses while effectively shutting out Black and other minority entrepreneurs.
This legislation raises critical constitutional, economic, and social justice concerns, particularly regarding its potential violation of Article I, Section 3 of the South Carolina Constitution, which guarantees equal protection under the law. By eliminating business certifications designed to level the playing field, this bill creates a pathway for white businesses to further dominate state contracts, reinforcing historical disparities in economic opportunity.
A Blow to Minority-Owned Businesses
For decades, minority business certifications have served as a critical tool in mitigating racial disparities in business ownership and ensuring fair access to state contracts. These certifications help Black, Latino, Indigenous, and women-owned businesses compete against larger, more established, and better-funded white-owned firms.
What Happens Without Certification?
If H.3927 is enacted, minority-led businesses will lose:
Access to state-backed certifications that validate their status and capabilities.
Opportunities for set-aside government contracts that ensure equitable distribution.
A seat at the table in procurement opportunities where networking and relationships matter.
Without this framework, small and minority businesses will find it increasingly difficult to compete against white-owned firms that already have generational wealth, existing government relationships, and institutional advantages.
The Numbers: White Business Dominance in SC
South Carolina’s business landscape is already skewed in favor of white business owners:
White-owned businesses make up the vast majority of employer firms in the state, according to the U.S. Census Bureau.
Black-owned businesses account for only 2% of employer firms, despite Black South Carolinians making up 27% of the state’s population.
White businesses already secure the lion’s share of state contracts. Without minority business certifications, this gap will only widen.
With no protections in place, the inevitable outcome is that white businesses will increasingly monopolize state contracts, reinforcing the historic exclusion of Black and other minority entrepreneurs from South Carolina’s economic framework.
A Constitutional Violation?
At its core, H.3927 appears to violate Article I, Section 3 of the South Carolina Constitution, which explicitly states:
“The privileges and immunities of citizens of this State shall not be abridged, nor shall any person be denied the equal protection of the laws.”
By stripping away a mechanism designed to provide equal economic opportunities, the bill effectively privileges white businesses while blocking minority entrepreneurs from critical access to state contracts.
Furthermore, this bill undermines federal civil rights protections under Title VI of the Civil Rights Act of 1964, which prohibits racial discrimination in programs receiving federal funding. If South Carolina agencies receive federal dollars, this bill could potentially trigger legal challenges for violating anti-discrimination laws.
A Political Move with Devastating Consequences
The South Carolina House GOP has justified H.3927 by claiming that DEI policies amount to “social experiments” that should not be facilitated by the government. However, in reality, these policies simply ensure fair access to economic opportunity, particularly for historically disadvantaged groups.
Who Benefits from H.3927?
The primary beneficiaries of this bill will be:
Wealthy white business owners who no longer face competition from minority-led firms.
Corporate interests that have long resisted equity initiatives and now see an opportunity to consolidate power.
Legislators with deep ties to conservative business groups, looking to reward their political base.
Meanwhile, Black and minority entrepreneurs, small business owners, and historically underrepresented communities will suffer the most, seeing their economic mobility stalled or reversed.
The Next Steps: Legal and Community Response
With the bill still in its early legislative stages, community leaders, business coalitions, and civil rights organizations must act swiftly to challenge its passage. Potential responses include:
Legal challenges arguing that the bill violates South Carolina’s constitutional protections.
Public mobilization and protests highlighting the bill’s discriminatory consequences.
Engagement with federal agencies to investigate whether the bill’s provisions violate federal anti-discrimination laws.
This fight is not just about DEI—it’s about the future of economic justice in South Carolina. If H.3927 is passed without resistance, it sets a dangerous precedent for the systematic dismantling of civil rights protections, ultimately leading to a state economy even more entrenched in racial inequality.
Conclusion: A Systematic Displacement of Minority Business Owners
Make no mistake—H.3927 is not about fairness or economic meritocracy. It is a deliberate attempt to erase decades of progress by ensuring that state contracts overwhelmingly favor white-owned businesses while leaving minority entrepreneurs behind.
This bill does not promote competition—it rigs the game in favor of those who already hold economic power.
If South Carolina lawmakers are truly committed to economic fairness, they should be expanding opportunities for all business owners, not removing protections that level the playing field.
For now, however, H.3927 stands as a stark reminder that without active resistance, hard-fought civil rights victories can be undone with the stroke of a pen.
Call to Action:
South Carolinians must demand accountability. Contact your legislators, mobilize business advocacy groups, and prepare for a legal fight if necessary. The future of economic justice in South Carolina depends on it.
Black folks better be ready in South Carolina to Push Back Hard!