A viral claim about California’s diversity program is making the rounds.
🇺🇸 California now requires companies to prove they’re gay to get government contracts, including letters from personal contacts confirming their sexuality.
What is happening in California?!
The DOJ is already investigating this madness.
Writer: Claudiopic.twitter.com/DmZSNXrHUz
— Mario Nawfal (@MarioNawfal) June 22, 2026
The claim says companies have to prove they are gay to get government contracts.
That sounds shocking.
But the actual policy is much narrower.
California’s Public Utilities Commission has had a Supplier Diversity program since 2014 for regulated utility companies.
The goal is to encourage utilities to buy from businesses owned by underrepresented groups, including LGBT-owned businesses.
For a business to qualify as LGBT-owned, it generally must be at least 51% owned and controlled by LGBT people.
The controversial part is the certification process.
Some applicants can provide verification letters confirming eligibility, including letters from people familiar with the business owner or documentation from recognized LGBT organizations.
That part has created criticism and is now being reviewed.
But the viral version skips important context.
This is not a rule saying every company in California must prove its owners’ sexual orientation to receive government contracts.
It is not a blanket requirement for all state contracts.
It applies to a specific utility supplier diversity program.
The difference matters.
A real debate exists over whether identity-based supplier programs are fair, effective, or appropriate.
But turning a narrow utility certification process into “California makes companies prove they are gay to get contracts” is a much bigger claim than what the policy actually says.
The internet took a complicated regulation and turned it into a much simpler outrage headline.
The reality is still worth debating.
It is just not the same story.