Record Spending With Minority & Women Owned Businesses

Governor Kathy Hochul today announced historic achievements for New York State’s Minority- and Women-Owned Business Enterprise (MWBE) Program as detailed in the newly released 2025 MWBE Annual Report. In Fiscal Year 2024–25, New York State disbursed $3.3 billion in payments to MWBEs — the highest statewide MWBE utilization spend in the history of the program — and achieved an estimated 31.86 percent utilization rate, marking the fifth consecutive year the State has met or exceeded its nation-leading 30 percent MWBE participation goal. Earlier this year, Governor Hochul signed legislation raising the MWBE discretionary purchasing threshold to $1.5 million, further streamlining procurement and expanding contracting opportunities for certified MWBE firms across the State.

“New York is leading the nation in uplifting minority- and women-owned businesses, and these results show what happens when we open doors to equal opportunity,” Governor Hochul said. “With a record $3.3 billion in payments to MWBEs and a 31.86 percent utilization rate, we are proving — five years in a row — that equity and economic growth go hand in hand. By raising the discretionary purchasing threshold to $1.5 million and continuing to streamline certification, we are ensuring more MWBEs can compete, win, and thrive across our State.”

Chief Diversity Officer Julissa Gutierrez said, “Achieving our 30 percent MWBE goal for five consecutive years demonstrates that creating opportunities for all of our diverse business community is not just an aspiration but an integral part of how New York State does business. By eliminating the certification backlog and reducing processing times through innovative initiatives, we're removing barriers and creating real pathways to prosperity for entrepreneurs who have been historically underrepresented in government contracting.”

Empire State Development President, CEO and Commissioner Hope Knight said, “The remarkable growth we're seeing — a 12 percent increase in MWBE spending over last year — reflects the strength and capability of New York's diverse business community. With nearly $15 billion disbursed to MWBEs since 2020 and our expanded Business Growth Accelerator Program creating $106 million in procurement opportunities, we're transforming the economic landscape of New York State and proving that supplier diversity drives innovation and competitiveness.”

ESD Division of Minority and Women's Business Development Executive Director Jason Clark said, “From certifying and recertifying over 4,000 businesses since 2024 to increasing the discretionary purchasing threshold to $1.5 million, we're making the MWBE program more accessible and impactful than ever before. Our new 'Certification Plus' pilot program and expanded regional outreach through our MWBE Regional Opportunities Expos ensure that the next generation of MWBE leaders have the tools, connections, and opportunities they need to thrive in New York State's economy.”

The 2025 MWBE Annual Report outlines significant advancements made under Governor Hochul’s leadership to modernize, strengthen, and expand New York State’s MWBE program. Following the elimination of the certification backlog in 2023, the Division of Minority and Women’s Business Development has continued to accelerate processing times, now averaging under 90 days for determinations. Through a series of targeted initiatives — including Sail-Thru Summer, Whirlwind Winter, Trailblazers in Business, Respuesta Rapida, Second Chance Certification Initiative, and Women Entrepreneurs Rising — the State provided hands-on application assistance to eligible firms through a network of Entrepreneurship Assistance Centers. Many applicants received determinations in as few as 30 days, marking the fastest certification timelines in program history.

The MWBE program now includes 9,745 certified firms statewide, with 2,225 firms certified or recertified in FY 2024–25. The State also expanded demographic reporting, with 249 certified businesses voluntarily providing detailed Asian American and Pacific Islander (AAPI) information for the first time, ahead of next year’s inclusion of Middle Eastern and North African (MENA) categories.

New York’s record-setting performance this year reflects strong participation across sectors and regions. State agencies and authorities reported $10.46 billion in total 15-A eligible expenditures, with MWBE utilization totaling $3.333 billion, comprising $1.724 billion in MBE utilization and $1.609 billion in WBE utilization. Since FY 2020–21, nearly $15 billion in State procurement spending has been directed to MWBEs, underscoring New York’s sustained commitment to equitable economic development. To further expand access, the State increased the MWBE discretionary purchasing threshold to $1.5 million, allowing agencies to procure more efficiently while widening the pipeline of contracting opportunities for certified firms.

Throughout FY 2024–25, the Division of Minority and Women’s Business Development expanded its statewide presence through the MWBE Regional Opportunities Expo Series, held in Syracuse and the boroughs of Manhattan and Queens, drawing more than 1,000 attendees and providing matchmaking, workshops, and direct engagement with public and private project owners. The Division also delivered two training webinars per month and participated in nearly 100 regional events, strengthening relationships with businesses across all ten New York regions.

New York State’s MWBE program is administered by Empire State Development’s Division of Minority and Women’s Business Development under Executive Law Article 15-A. Through certification, oversight, capacity building, and direct engagement, the program continues to help minority- and women-owned businesses grow, compete, and contribute to a more open statewide economy.

State Senator James Sanders Jr. said, “For years, I have championed MWBE reforms because our small businesses deserve a fair chance to compete and grow. Today’s announcement proves that when state leadership, advocates, and entrepreneurs work together, we deliver real economic impact. Governor Hochul’s expansion of the MWBE discretionary threshold and acceleration of certification timelines will open even more doors. I look forward to continuing this work so every qualified MWBE has a seat at the table, and a share in New York’s prosperity.”

Assemblymember Rodneyse Bichotte Hermelyn said, “Governor Hochul continues to lead the fight for New York State's Minority and Women Owned Business Enterprise Program. By making it easier than ever for MWBEs to procure contracts and streamlining the certification process—including the elimination of the years-long backlog—Governor Hochul has removed systemic barriers to success. I’m proud to stand alongside her and this historic achievement, which is allowing diversity in the state to prosper and be supported. Diversity in New York State is the backbone of not just our society, but our economy as well.”