Pritzker-backed law requires contract bidders to ‘prioritize their diversity initiatives if they hope to be competitive’
A little-known law in Illinois requires private companies to finance the DEI industry if they wish to do business with the state—giving a lifeline to an unpopular industry that currently finds itself on the ropes as major companies across the country ditch their DEI programs and President Donald Trump works to eradicate its influence across the federal government.
Gov. J.B. Pritzker (D.) signed a bill into law in 2021 that essentially requires businesses that seek to do business with the state of Illinois to bankroll the DEI industry. The law, which went into full effect in 2024, established a “commitment to diversity” factor in all state contracts that grades companies in large part on how much money they donate to DEI nonprofits and how much time their leaders personally volunteer to promote DEI in their communities. The higher the score companies receive on Pritzker’s DEI factor, the more likely they are to secure contracts from his administration.
In practice, Pritzker’s “commitment to diversity” factor forces private businesses to provide a financial lifeline to an otherwise dying DEI industry. The Pritzker administration scores out of 100 possible points based on their answers to seven DEI questions. One question requires companies to disclose how much they spend financing the DEI industry. Another question asks how much time a business’s leaders volunteer to promote DEI in their community. Other questions probe companies on what percentage of their staff are women and minorities and whether or not bidders have entered into agreements with any female- or minority-owned businesses.
Since going into full effect last year, Pritzker’s DEI factor has had a major impact on the way Illinois does business. Some 44 percent of state contracts awarded in fiscal year 2024 went to the companies that scored the highest on DEI factor, as opposed to their technical competency or price, according to a report published late last year by the Illinois Chief Procurement Office.
That includes the renewal of a $4 billion contract from the Illinois Department of Corrections in December 2023 to Wexford Health Sources, a company that has faced allegations of neglecting Illinois inmates under its care, including one obese patient who was discovered with cockroaches crawling out of his abdomen, NPR reported.
Wexford Health Sources won the contract over the bid of another health care company that offered the same medical services to the state for $3.5 billion. The Illinois Department of Corrections selected Wexford for the contract in part because of its “commitment to diversity,” WTTW reported.
Pritzker’s office did not return a request for comment.
The Illinois Chief Procurement Office also touted that the Pritzker diversity factor fostered DEI practices within companies that didn’t win state contracts. The factor “has the capacity to catalyze more than a thousand actions focused on diversity, equity, and inclusion annually,” the office said in its report. “This program is undeniably creating a substantial and meaningful impact.”
That’s because Pritzker’s DEI factor isn’t designed to ensure Illinois taxpayers receive the most bang for their buck but instead to foster a fundamental change in how American companies do business and to provide a financial lifeline to the DEI industry.
“The Commitment to Diversity Factor (C2D-Factor) goes beyond the narrow scope of procurement preferences and diversity goals by affecting more than just those vendors winning government contracts,” the Illinois Chief Procurement Office stated in its report. “The C2D-Factor awards RFP points to offerors that intentionally recruit, promote, donate, volunteer, and diversify suppliers … It also benefits community organizations, educational institutions, and diverse businesses and individuals not directly involved in state procurement.”
Pritzker hailed his DEI contract scoring factor as a landmark victory in the “fight for economic justice” when he enshrined the bill into law in March 2021. But it could come back to bite the Democratic governor as he gears up for a potential 2028 presidential run. Recent polling shows that a growing number of Americans are in favor of the Trump administration’s efforts to terminate DEI programs across the federal government and in federal contracting.
But to any company vying for a piece of a Pritzker administration contract, the message is clear: Compliance with DEI is mandatory in order to do business with Illinois.
“The C2D-Factor accounts for up to 20% of the technical score, requiring offerors to prioritize their diversity initiatives if they hope to be competitive,” the Chief Procurement Office said in its report.
Pritzker’s DEI factor provides 20 points to companies that give more than two percent of their annual revenue to support the DEI industry. Companies that give less than 1 percent, however, receive only 10 points towards their bids for Pritzker administration contracts, according to state documents reviewed by the Washington Free Beacon.
Eligible business expenses include consultations with DEI auditors, purchasing DEI training programs, providing low-income loans to a minority-owned business, or financing DEI community events, regardless of whether anyone attends or not, the state documents show.
“If a DEI event was planned but suffered poor turnout, didn’t raise fund goals, or was canceled due to unforeseen circumstances, points will still be awarded for the time and money spent,” the Illinois Chief Procurement Office states on its website.
Time spent volunteering to promote DEI is also a major scoring factor in Pritzker’s “commitment to diversity” factor. Illinois awards the maximum 20 points to businesses whose leaders devote at least 17 hours a year preaching the virtues of DEI at community events, providing free “financial literacy” for female-owned businesses, hosting internal “DEI Employee forums,” or volunteering on the board of a nonprofit that promotes DEI.
The Illinois Chief Procurement Office did not return a request for comment.
