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Federal Court Blocks Grant Program for Black Female Business Owners

In a recent decision, a federal appeals court blocked a grant program that only allowed black female business owners to apply. The Eleventh Circuit ruled 2-1 that the program likely violated federal laws by discriminating based on race. The program called the “Fearless Strivers Grant Contest” was run by the Atlanta-based venture capital fund Fearless Fund, which awarded $20,000 quarterly grants to small businesses founded by black women.

The court stated that ensuring racial equality in contracting is vital for the public interest. The American Alliance for Equal Rights (AAER) brought the lawsuit against Fearless Fund in August, arguing that the program’s exclusive nature was illegal. The court found that AAER had the right to bring the lawsuit and that the program was unlikely to be protected under the First Amendment.

Conservative activist Edward Blum, president of AAER, expressed gratitude for the court’s decision, emphasizing that civil rights laws do not allow for racial distinctions. Blum stated that programs excluding individuals based on race, like the Fearless Fund’s grant competition, are unfair and divisive.

The decision comes as diversity policies in corporations face increased scrutiny following the Supreme Court’s decision to strike down affirmative action in college admissions. The Fearless Fund has not responded to requests for comment on the ruling.

From a conservative viewpoint, it is important to uphold the principle of equal opportunity and non-discrimination. Grant programs that exclude individuals based on race can perpetuate division and undermine the merit-based values that America stands for. This court ruling serves as a reminder of the ongoing need to ensure fairness and equality for all individuals, regardless of their background.
 

Written by Staff Reports

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