INDIANAPOLIS— Indiana Attorney General Todd Rokita, in coordination with Governor Mike Braun, has announced updated requirements for all state contractors, effective July 1, that explicitly prohibit employment practices based on diversity, equity, and inclusion (DEI) initiatives that the state considers discriminatory.
Under the new policy, contractors must certify that they do not treat individuals differently based on race or sex in employment activities such as hiring, promotion, and recruitment. All state contracts signed on or after July 1 must include updated language clarifying that DEI practices inconsistent with Indiana’s nondiscrimination laws are impermissible.
“Treating people differently in the workplace or at school based on race and sex is a destructive practice and illegal,” Attorney General Rokita said in a statement. “No one gets a free pass for unlawful discrimination just because they claim to have good intentions.”
Although DEI is typically promoted as a framework for advancing diversity, equity, and inclusion, state officials argue that it is often used to justify preferential treatment based on personal characteristics that violate civil rights protections.
Attorney General Rokita, who is responsible for reviewing and approving all state contracts and enforcing Indiana’s False Claims Act, stated that contractors found to be operating DEI programs that violate state or federal anti-discrimination laws could face enforcement actions.
The new policy follows Governor Braun’s executive order, issued in January 2025, which banned state agencies from using public funds, property, or resources to support DEI initiatives that give preferential treatment based on race.
“We must make every effort to ensure freedom and opportunity for all Hoosiers,” said Governor Braun. “Replacing divisive DEI policies with those that reward merit, excellence, and innovation honors my commitment to a level playing field for all.”
The Indiana directive also aligns with recent federal action. Earlier this year, former President Donald Trump issued an executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”, which requires federal contractors to certify that they are not implementing DEI programs that violate anti-discrimination laws.
The revised nondiscrimination provision, including a new subparagraph referencing DEI practices, is now a standard clause in Indiana state contracts. It reinforces longstanding prohibitions on racial discrimination while clarifying that such protections extend fully to DEI-related employment policies.
The updated nondiscrimination provision affecting Indiana contractors — including the new Subparagraph B referencing DEI — can be viewed here.
