(Luis Cornelio, Headline USA) In California, being a gay business owner comes with some special perks, including a preferred shot at utilities contracts worth hundreds of millions of dollars. There’s just one catch: you have to prove your homosexuality.
The program, highlighted by City Journal’s Christopher Rufo on June 16, operates from the California Public Utilities Commission. The agency oversees private utility companies and urges them to increase diversity.
According to Rufo, the diversity program dates back to several previous governors, but Newsom expanded its scope in 2019.
The CPUC, on the orders of California Gov. Gavin Newsom, effectively directed companies to allocate 1.5% of procurement to LGBT-owned firms in 2024. In practice, the companies spent $633 million on LGBT firms that year alone.
To qualify, business owners must submit evidence intended to prove they qualify for the LGBT program. Among the required materials are letters from friends, on company letterhead, who can “vouch/attest to LGBT status.”
Paperwork states that individuals who misrepresent or falsify information in documentation could face penalties, including up to one year in state prison and a $5,000 fine.
SCOOP: California is pressuring public utilities to award $633 million in special contracts to "LGBT-owned" firms. To qualify, residents must go through the state's official gay-certification program—and face up to a year in jail if they're not gay enough.https://t.co/rOcnPqYJrl
— Christopher F. Rufo ⚔️ (@christopherrufo) June 16, 2026
Other more traditional paperwork includes marriage certificates, evidence of “family-building efforts,” including surrogacy, adoption or IVF, as well as documentation showing that partners reside in the same home, according to screenshots shared online.
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 enough
Extremely bizarre, not to mention highly illegal.
Source: @CityJournal pic.twitter.com/CCME6cjHiA
— Libs of TikTok (@libsoftiktok) June 16, 2026
The CPUC program also seeks to benefit racial minorities, gender-based categories, veterans, and others.
The puzzling program has drawn scrutiny from Harmeet Dhillon, the associate attorney general for the Civil Rights Division, who urged the CPUC to “carefully assess” the program, noting that aggrieved companies could pursue legal action alleging discrimination.
California has a gay certification program now?! A report from @christopherrufo detailed how the state is making lists and pressuring utilities to support gay-certified companies. Is this even legal?! @AAGDhillon tells me the DOJ is looking into it:
“I agree that it's… pic.twitter.com/EHmuFdrDAC
— Glenn Beck (@glennbeck) June 17, 2026
The program also sparked immediate negative reactions on social media.
Critics on X questioned the idea of a public agency certifying businesses based on sexual orientation, saying that the program does not pass legal muster.
Here are some of the responses:
