Business grant for Black women slammed as ‘racially exclusionary’ in federal court ruling

Federal Appeals Court Halts Grant Program Prioritizing Black Women-Owned Businesses

In a recent decision, the 11th U.S. Circuit Court of Appeals has temporarily blocked the operation of the Strivers Grant Contest by the Fearless Fund, an organization that awards grants of $20,000 to businesses primarily owned by Black women. The court’s ruling, which came in a 2-1 decision, termed the program “racially exclusionary.”

This judgment reverses a previous decision by U.S. District Judge Thomas W. Thrash, who had declined a request to halt the program from the American Alliance for Equal Rights.

The American Alliance for Equal Rights contended that the Fearless Fund’s grant program violated the Civil Rights Act of 1866, a law prohibiting racial discrimination in contracts.

“The members of the American Alliance for Equal Rights are pleased that the 11th Circuit acknowledges the potential illegality of the Fearless Strivers Grant Contest,” said Edward Blum, the founder of the American Alliance for Equal Rights. “We await the final resolution of this lawsuit.”

The court sided with the American Alliance for Equal Rights, arguing that the fund’s practices violated the Civil Rights Act of 1866. However, Judge Charles R. Wilson dissented, stating that the use of the 1866 law was a “misinterpretation of Congressional intent,” asserting that it was originally designed to prevent economic exclusion of Black individuals.

In response to the ruling, the Fearless Fund expressed strong disagreement and vowed to continue their legal battle. Their statement emphasized their commitment to addressing disparities faced by Black women and other women of color in the venture capital space.

The Fearless Fund was established to support Black female entrepreneurs in accessing venture capital funds and has been represented by prominent civil rights lawyers like Ben Crump. They argued that the grants they provided were donations protected by the First Amendment, rather than contracts. However, the majority on the appeals court panel rejected this argument, stating that the First Amendment does not allow exclusion from contractual arrangements based on race.

The Fearless Fund has not yet responded to a request for comment from Fox News.