Assistant Attorney General for Civil Rights Harmeet Dhillon announced Wednesday that the Department of Justice will begin investigating the California Public Utilities Commission's “Supplier Diversity Program” after it was revealed days ago to be providing specialized contracts for state-certified gay-owned businesses.
"Affirmative action for 'Eskimos' and 'LGBT people?' The California Public Utility Commission's 'Supplier Diversity Program' has gone off the rails. This may be news to California, but race and sex discrimination violate federal law," Dhillon wrote in a statement on X. "@CivilRights will take any appropriate action."
Affirmative action for "Eskimos" and "LGBT people?" The California Public Utility Commission's "Supplier Diversity Program" has gone off the rails. This may be news to California, but race and sex discrimination violate federal law. @CivilRights will take any appropriate action. pic.twitter.com/stFW4n0ufb
— AAGHarmeetDhillon (@AAGDhillon) June 17, 2026
BREAKING: Harmeet Dhillon is cracking down on California's gay-certification program. "The Constitution does not tolerate discrimination on the basis of race or sex." This is exactly what I voted for. https://t.co/qdGBcNWGqc
— Christopher F. Rufo ⚔️ (@christopherrufo) June 18, 2026
The initial story was reported by the Manhattan Institute's City Journal. According to the report, "The scheme operates through the California Public Utilities Commission (CPUC), which regulates privately owned utility companies. California utilities spent more than $43 billion in 2024 on contractors—fuel suppliers, surveyors, engineers, and others—whose work helps deliver water, gas, electricity, and internet service to California’s 39 million residents."
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SCOOP: California is pressuring public utilities to award $633 million in special contracts to "LGBT-owned" firms. To qualify, residents must go through the state's official gay-certification program—and face up to a year in jail if they're not gay enough.https://t.co/rOcnPqYJrl
— Christopher F. Rufo ⚔️ (@christopherrufo) June 16, 2026
Rather than awarding contracts to private companies based on low costs, efficiency, or genuine qualifications, the CPUC grants a specific number of contracts primarily based on how gay the company owners are, naturally raising questions about how the state even confirms such a characteristic.
Well, according to City Journal, "Supplier Clearinghouse, a group that certifies firms for the CPUC program, features a list of qualifications linked on its website. Applicants can secure certification by providing a letter from an 'LGBT organization' attesting to their sexual preferences; proof that a newspaper identified them as 'LGBT'; or three letters from 'personal contacts' written 'on company letterhead' attesting to their homosexual orientation. Corporate officials who “falsely represent” their business as gay face up to a year in county jail."
This comes amid broader investigations into California's bloated bureaucracy, which has been uncovered as ripe with waste, fraud, and abuse, despite the state's Democrats insisting such problems don't exist. The announcement also aligns with the Trump administration's push to clamp down on Diversity, Equity, and Inclusion initiatives, which it has condemned as a form of discrimination and a violation of U.S. civil rights law.
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