A federal court has blocked a DEI program designed to only give grant funding to Black female business owners.
The Atlanta-based Fearless Fund was challenged in a lawsuit over concerns that it may be discriminatory. The case was brought by the American Alliance for Equal Rights – a group which has waged legal battles against dozens of corporations participating in DEI programs.
A three-judge panel of the U.S. Court of Appeals for the 11th Circuit in Miami found that the program may violate section 1981 of the 1866 Civil Rights Act. Brought in shortly after the abolition of slavery, the law prohibits race-based discrimination in regard to contracts.
Rejecting Fearless Fund’s arguments that the grants were not contracts but charitable donations, the panel ruled that Fearless Fund “refuses to entertain applications from business owners who aren’t ‘black females.’”
The panel ruled 2-1 against Fearless Fund, with Barack Obama-appointee Judge Robin Rosenbaum voting in favor.
As a result of the decision, the Fearless Fund must now suspend its Strivers Grant Contest, which awards businesses owned by Black women $20,000 in grants. The lawsuit will now return to Atlanta where a final decision will be issued within the coming months.
which provides $20,000 to businesses that are majority owned by Black women
Social media users claimed the decision was a “victory” for equality.
Others expressed their view DEI programs are fundamentally racist as they often exclude certain groups from enjoying the benefits they offer.
What’s your view on DEI programs? Let us know in the comments below.
