Orange County suspends minority/women business enterprise program to comply with federal executive‑order requirements; board approves Head Start application

Orange County commissioners on Tuesday voted to temporarily suspend the county’s Minority and Women Business Enterprise (M/WBE) program after legal staff warned that a recent federal executive order requires certifications that could expose the county to False Claims Act liability if the county’s existing DEI practices are not in strict alignment with federal directives.

Assistant County Attorney Heather Wallace told the board that Executive Order 14173 and related federal guidance require grant recipients to certify they do not operate DEI programs that violate anti‑discrimination directives. Wallace warned the county faces potential False Claims Act penalties — including treble damages — for improperly executed certifications and cited the risk to recurring federal grants. "In order to avoid potential prosecution and allow the county to continue to receive federal funds that assist the county in providing numerous programs to its citizens, it is recommended that the county suspend its minority women business enterprise program," Wallace said.

Wallace listed federal programs that could be affected if the county failed to comply with certification requirements, including Head Start, Section 8 vouchers, community development block grants, emergency solutions grants, supportive housing programs, and federal emergency management and public health funds. The administration said it will present a replacement Small Business Enterprise program at the board’s July 15 meeting designed to comply with the federal requirements while continuing local assistance to small businesses.

Commission reaction and public comment: Several commissioners and public speakers signaled strong support for policies that help historically disadvantaged entrepreneurs. Commissioner Victoria Wilson expressed continued support for diversity and equitable access while saying she would not sacrifice funding for preschool programs. Commissioner Simrad urged that the county preserve the useful elements of the current M/WBE program and repackage them once federal rules permit. Public commenters during morning comment raised similar concerns about the county’s role in immigrant detention and small‑business supports; those comments informed the broader conversation.

Votes and subsequent action: Commissioner Alejandro Uribe moved to suspend the county M/WBE program; Commissioner Michael Scott seconded. The motion passed unanimously. The board also approved the previously pulled Head Start grant application — a separate vote moved by Commissioner Wilson and seconded by Commissioner Uribe — allowing the county to continue seeking federal Head Start funding.

What’s next: County counsel and administrative staff said they will return with a proposed Small Business Enterprise program intended to provide continuity of support for small and minority‑owned firms while meeting federal certification requirements. The board asked staff to coordinate outreach and education to help small business owners understand any new application or certification process.