Orlando is officially retiring its long-running Minority and Women Business Enterprise program and rolling out a new race- and gender-neutral system that favors small, local firms instead. City Council members voted Monday to approve a Small and Local Business Enterprise Preference Program that they say will protect critical federal funding while still giving hometown businesses a leg up on city contracts.
Council action and ordinance
Monday's vote locked in Ordinance No. 2025-47 and put the old rules on ice, as reported by ClickOrlando. The measure suspends the city's previous MWBE framework and directs staff to write a new policy that spells out who qualifies for the program and exactly how the preference will work in city contracting.
City confirms MWBE suspension
The shift is already visible on the city's website, where the Minority and Women Business Enterprise program is now marked "suspended" and the city explains the pause is "to ensure the city is in compliance with federal law," according to the city's MWBE page. The notice lists contact information for the program manager and pledges updates as new developments roll out.
Why the change and federal funding at stake
Behind the legal language is a very practical concern: federal money. City officials and program staff have pointed to conditions on federal grants, warning that the old MWBE rules could put roughly $37 million in Federal Aviation Administration funding for airport improvements at risk. Local reporting noted that the city's legal team flagged potential problems with FAA grant eligibility if the MWBE program stayed in place, and the MWBE director has said existing participants will be moved into the new small-business program, according to WFTV.
What the new program does
The ordinance itself, titled "Ordinance No. 2025-47", suspends Chapter 57 Articles II and III and creates a Small and Local Business Enterprise Preference intended to encourage and promote the participation of certified small and local businesses in city contracting. The fine print will come later in a separate policy, but council documents state that the revamped approach is meant to be race- and gender-neutral while still giving the city tools to boost participation from smaller, local firms.
Federal executive orders and legal backdrop
City leaders have tied the timing of the overhaul to shifting federal rules around diversity, equity, and inclusion programs. Recent federal directives have restricted certain DEI-focused practices and, in 2025, executive orders instructed agencies to reexamine grant conditions. Those moves have triggered lawsuits and updated guidance across the country, shaping how local governments interpret what it takes to stay on the right side of federal compliance, according to Just Security.
Local reaction
Reaction in Orlando's small-business community has been measured, with some cautious optimism and some concern. Karen Kurta, president of the National Association of Women Business Owners in Orlando, told Spectrum News that the outgoing program provided vital support to smaller firms. She urged the city to build in tiers so microbusinesses are not crowded out by larger contractors under the new rules.
Next steps
Plenty of details still have to be ironed out. City staff will now develop the nuts and bolts of the program, including firm-size thresholds, certification standards, and how the preference will actually be applied to bids and awards, before bringing that policy back to the council. For now, the city's MWBE page notes that the program is suspended "effective immediately" and says additional updates will be posted as they become available.
