New York State reported a record $3.3 billion in spending with minority- and women-owned businesses (MWBEs) for Fiscal Year 2024–25, according to the 2025 MWBE Annual Report released by Governor Kathy Hochul’s office. The state achieved an estimated 31.86 percent utilization rate, marking the fifth consecutive year it has met or exceeded its 30 percent participation goal for MWBEs.
Governor Hochul highlighted the significance of these results, stating, “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. 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.”
Earlier this year, legislation was signed increasing the MWBE discretionary purchasing threshold to $1.5 million. This move aims to make procurement more efficient while expanding contracting opportunities for certified firms.
Chief Diversity Officer Julissa Gutierrez commented on the milestone: “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 added that there has been a 12 percent increase in MWBE spending over last year: “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.”
Jason Clark, Executive Director of Empire State Development’s Division of Minority and Women’s Business Development (DMWBD), stated: “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 report outlines several steps taken under Governor Hochul’s leadership aimed at modernizing New York’s approach toward supporting minority- and women-owned enterprises. After clearing a backlog in certifications last year, average processing times now stand at less than three months; some applicants received determinations within as little as one month.
Currently there are almost 10,000 certified firms statewide—2,225 were certified or recertified during FY 2024–25 alone—and demographic reporting has been expanded ahead of further changes next year.
State agencies recorded total eligible expenditures exceeding $10 billion this fiscal year; about one-third went directly toward contracts with MBEs ($1.724 billion) or WBEs ($1.609 billion). Since FY 2020–21 nearly $15 billion has been directed toward such firms as part of ongoing efforts for equitable economic development.
Outreach included expos held across Syracuse as well as Manhattan and Queens boroughs which drew over one thousand attendees; monthly training webinars were also provided along with participation at numerous regional events statewide.
State Senator James Sanders Jr., reflecting on these achievements said: “For years I have championed MWBE reforms because our small businesses deserve a fair chance to compete and grow…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 also remarked: “Governor Hochul continues to lead the fight for New York State’s Minority and Women Owned Business Enterprise Program…I’m proud to stand alongside her and this historic achievement…Diversity in New York State is the backbone of not just our society but our economy as well.”
