CA Launches Absurd Program Forcing Businesses to Prove They’re ‘Gay Enough’ for State Contracts [WATCH]

A report published by City Journal is drawing attention to a California program that provides contracting opportunities to businesses certified as LGBT-owned, including a verification process that requires applicants to submit documentation related to their sexual orientation or gender identity, as reported by Townhall.

According to the report, businesses seeking certification under the state’s LGBT Business Enterprise program must complete an application process designed to verify that qualifying ownership requirements have been met before becoming eligible for certain contracting opportunities.

The certification process has become the subject of debate after details of the application requirements circulated widely on social media.

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The program emerged after years of advocacy from activists who argued that LGBT-owned businesses faced barriers in obtaining contracts and business opportunities within California’s utility sector.

Those efforts ultimately resulted in policies administered through the California Public Utilities Commission that expanded contracting opportunities for businesses certified as LGBT-owned.

According to the report, approximately $633 million in contracts were made available to businesses that could demonstrate a qualifying ownership status under the program.

The certification process includes a questionnaire intended to establish whether an applicant qualifies as a member of the LGBT community.

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The report states that applicants may be asked to provide documentation such as marriage licenses, evidence of “completed or attempted parenting efforts,” records connected to gender transition procedures, or letters from what the program describes as a “recognized LGBT organization.”

Applicants are also required to submit multiple forms of identification as part of the verification process.

The requirements gained broader attention after a social media post highlighted portions of the certification materials and questioned the legality of the process.

The post stated, “California has a gay certification checklist to ensure taxpayer funded contracts only for lgbtq people, are being awarded to people who are gay enough.”

The post continued, “Extremely bizarre, not to mention highly illegal.”

I can’t believe this is real…

California has a gay certification checklist to ensure taxpayer funded contracts only for lgbtq people, are being awarded to people who are gay enoughExtremely bizarre, not to mention highly illegal.Source: @CityJournal pic.twitter.com/CCME6cjHiA— Libs of TikTok (@libsoftiktok) June 16, 2026

The certification program is intended to verify eligibility before businesses receive recognition as LGBT-owned enterprises.

Similar certification programs exist for other categories of businesses that seek preferential consideration or inclusion in supplier diversity initiatives.

According to the report, applicants who knowingly provide false information during the certification process can face significant penalties.

The penalties include fines of up to $5,000 and the possibility of up to one year in prison for fraudulent claims made during the application process.

The publication of the report has generated renewed discussion about whether governments should provide contracting advantages based on characteristics such as sexual orientation or gender identity.

Critics have questioned whether the requirements and resulting contracting preferences can withstand legal scrutiny, particularly as courts continue to review diversity, equity, and inclusion programs across the country.

Supporters of such initiatives have argued that certification programs are designed to identify businesses owned by groups that have historically faced barriers to economic opportunities and government contracting.

The report has added California’s program to the growing national debate over diversity-based contracting preferences and the standards used to verify eligibility.

Questions surrounding the certification requirements, the use of taxpayer-funded contracts, and the legal framework supporting such programs are likely to continue as scrutiny of diversity-focused initiatives increases nationwide.

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