Federal court temporarily blocks race-based grant program

A federal appeals court on Saturday temporarily blocked a grant program for Black women-owned businesses.

American Alliance for Equal Rights, a nonprofit backed by conservative legal activist Edward Blum, sued the Atlanta-based Fearless Fund in August, alleging that the venture capital fund’s grant program violated the 1866 Civil Rights Act’s “guarantee of race neutrality” in making “contracts” by discriminating against other races.

The lawsuit follows a Supreme Court decision in June that struck down race-based affirmative action in higher education after challenges brought by Students for Fair Admissions, a group also backed by Blum.

After a district court judge in Georgia refused to issue an injunction earlier this week, the U.S. Court of Appeals for the 11th Circuit granted the injunction in a 2-1 decision on Saturday. Robert Luck and Andrew Brasher, both appointed by former President Donald Trump, were in favor. Charles Wilson, appointed by former President Bill Clinton, dissented.

The targeted program intends to support Black women-owned businesses by awarding grants and providing mentorship and business support services — however, in the Saturday opinion, the judges said that it was “substantially likely” that the program was illegal.

Blum has filed similar suits against several businesses that he says use the same kind of racial classifications previously used in higher education admissions — such programs are likely the next target for conservative legal activism.