Group that overturned affirmative action takes on race-based funding

A case that could have enormous implications for philanthropic and other organizations that provide funding to underrepresented groups is making its way through the courts.

What you probably already know: The American Alliance for Equal Rights — the group that successfully challenged college affirmative action admissions practices last year — is now taking on foundations and organizations that hand out funding based on race-specific policies. Edward Blum, a conservative activist, has sued the Fearless Fund, an Atlanta-based nonprofit firm that provides grants to Black female-owned businesses.

Why? Blum argues racial equity is not one-sided and that discrimination is discrimination, regardless of history. The CEO of the Fearless Fund says that, given only 1% of the funding last year went to Black-owned startups, race-specific initiatives are vital to leveling the playing field.

What it means: Should the courts rule in Blum’s favor, this could staunch any philanthropic organization that focuses funding on a particular demographic and remove the discretion that many organizations have traditionally used in their awards processes. It could also impact scholarship programs that use similar methods in their awards processes.

What happens now? The U.S. Court of Appeals for the 11th Circuit in Florida will decide whether to uphold a lower court judge’s ruling to block the Fearless Fund from awarding grants. Two of the three judges on the panel were appointed by Donald Trump and have already indicated skepticism of the Fund’s argument that its decision-making process is protected by the First Amendment. Regardless of the court’s decision, though, these groups seem primed to end up in front of the Supreme Court. Fearless Fund has support from the NAACP Legal Defense Fund, the American Civil Liberties Union, and the attorneys general of 18 states. Blum’s group is supported by a variety of conservative organizations including America First Legal, a group founded by former Trump adviser Stephen Miller.