Economist Files Motion in Challenge to Minority Supplier Certification Program Case
An amicus filing in a federal case challenging NMSDC’s Minority Business Enterprise certification program examines potential consequences for GDP, jobs, procurement competition, business formation and tax revenue.
Proposed economic analysis examines potential effects on GDP, employment, procurement costs, business formation, tax revenue and supplier competition in amicus brief
By Creative Investment Research
WASHINGTON — August 6, 2026 — Economist William Michael Cunningham has filed a Motion for Leave to File an Amicus Curiae Brief in American Alliance for Equal Rights v. National Minority Supplier Development Council, et al., Case No. 2:26-cv-02126-JWB-JBW, pending before the U.S. District Court for the District of Kansas.
The proposed amicus brief offers an independent economic analysis of the potential consequences of enjoining the National Minority Supplier Development Council’s Minority Business Enterprise certification program.
Cunningham’s motion asks the court for permission to consider economic evidence and market implications that he says are not addressed in the parties’ pleadings.
“This case raises important legal questions,” Cunningham said. “My proposed brief does not attempt to resolve those legal issues. Instead, it provides an economic framework that quantifies the potential consequences of the requested injunction for businesses, workers, procurement markets, and the broader U.S. economy.”
Economic Issues Examined
The proposed analysis considers potential effects across several major areas of the economy, including:
- U.S. gross domestic product and regional economic output;
- Employment, wages and labor income;
- Supplier competition and procurement costs;
- Small-business formation and firm growth;
- Federal, state and local tax revenues;
- Supply-chain resilience; and
- Long-term market efficiency.
The analysis draws upon the economic scholarship of Nobel laureates Gary S. Becker, George A. Akerlof, Michael Spence, Joseph E. Stiglitz, Ronald H. Coase and Oliver E. Williamson.
Their work has examined how discrimination, information asymmetry, transaction costs and institutional design can influence the efficiency and performance of markets.
Certification as a Market Institution
According to the proposed brief, supplier-certification systems can function as market institutions that help purchasers identify and verify suppliers.
The analysis argues that certification may reduce information asymmetry between purchasers and suppliers, lower transaction costs, facilitate supplier verification, broaden competition and improve procurement efficiency.
Using what Cunningham describes as conservative economic assumptions, the proposed analysis estimates that a significant disruption of the NMSDC certification system could produce reductions in economic activity, employment, business formation and tax revenues.
The analysis also examines whether such disruption could increase procurement costs and reduce supplier competition.
Independent Participation
Cunningham states that he is participating solely in his individual capacity as an economist.
According to the motion, no party or counsel for any party funded the preparation of the proposed amicus brief.
The motion further argues that federal district courts may permit amicus participation when specialized expertise could assist the court in considering issues extending beyond the immediate interests of the litigants.
Cunningham’s proposed economic analysis is intended to provide that broader perspective.
Broader Examination of Supplier Certification
In conjunction with the filing, Cunningham has prepared a technical memorandum summarizing the economic issues raised by the case.
He is encouraging economists, procurement specialists, business organizations and academic researchers to examine the broader economic implications of supplier-certification systems and potential changes to their operation.
Case Information
Case: American Alliance for Equal Rights v. National Minority Supplier Development Council, et al.
Case No.: 2:26-cv-02126-JWB-JBW
Court: U.S. District Court for the District of Kansas
Filing: Motion for Leave to File an Amicus Curiae Brief
Amicus Applicant: William Michael Cunningham
Capacity: Economist, appearing individually
Proposed brief:
https://drive.google.com/file/d/1MRy0wObpQ7HSH45FnoB_gkNC...
Contact:
William Michael Cunningham
