Empire State Development MWBE Report

Thirty-seven years ago, the New York State Division of Minority and Women’s Business Development (Division) was established to promote equality in economic opportunities for minority and women-owned business enterprises (MWBEs) in state contracting. The Division was created because New York values the importance of cultivating a vibrant, dynamic and inclusive economy that works for all New Yorkers. However, despite the progress that has been made, there continue to be barriers that make it tougher for MWBEs to prosper. We are proud of recent accomplishments, but we are also well aware that there’s more to be done.
 

Under the leadership of New York Governor Kathy Hochul and Empire State Development Commissioner, President, and CEO Hope Knight, we are doing more than ever before to support our MWBE community. Following the historic elimination of our MWBE certification backlog, we have certified, and recertified, over four thousand businesses since 2024. We have reduced the average time it takes to receive a final determination on a certification application to less than ninety days, and we have created innovative programming such as our “Trailblazers in Business” and “Second Chance Review” initiatives to assist businesses with completing the certification process.
 

However, more than just revamping our certification review process, we’ve taken meaningful steps toward improving the best MWBE program in the country. Below are some of our most memorable milestones in 2025:
 

New York Reaches the Highest MWBE Utilization Spend in State History: In FY 2024–2025, New York witnessed a $369 million increase in payments to MWBEs, reflecting a twelve percent increase since last year. New York State’s $3.3 billion in disbursements (not awards) to MWBEs marks the highest MWBE utilization spend in the history of our program.
 

New York Reaches Governor Hochul’s Thirty Percent MWBE Participation Goal for a Record Fifth Year in a Row: Since Governor Hochul assumed office, New York has reached the highest, second highest, and third highest MWBE utilization rates in the history of New York State. The result is nearly $15 billion in state procurement dollars being disbursed to MWBE businesses since FY 2020–2021. By reaching this year’s 31.86 percent MWBE utilization rate, New York State has become the first state to reach a thirty percent MWBE participation rate on state procurements for an unprecedented five years in a row.

 

NYS MWBE Discretionary Purchasing Threshold Increased to $1.5 Million: Earlier this year, Governor Hochul signed legislation increasing the MWBE Discretionary Purchasing threshold to $1.5 million. By expanding the MWBE discretionary purchasing threshold, the state is streamlining the procurement process and eliminating barriers for certified minority and women-owned businesses to contract with state agencies and authorities.
 

Cultivating the Next Generation of MWBE Business Leaders: Building on the success of last year’s DMWBD Business Growth Accelerator Program, which led to just under $106 million in procurement opportunities, we’ve more than doubled the size of this Business Growth Accelerator Program. We’re also piloting a “Certification Plus” program that will assign greater utilization credit to vendors who subcontract with MWBE businesses that have not received a New York State contract over the last five years.
 

Here in New York State, we value the contributions of our MWBEs and the role these businesses play in promoting innovation, job creation, and increased tax revenue. We value the importance of cultivating a vibrant and inclusive economic ecosystem. We value doing what’s right.
 

I would like to thank all our New York State agencies and authorities for their efforts to increase MWBE participation on state contracts. Your commitment is essential to our program, and we look forward to even greater success in 2026. 

Jason M. Clark is the executive vice president and executive director of the New York State Division of Minority and Women’s Business Development.