Minority business agency must serve all races, a federal judge rules

A federal judge in Texas has ordered U.S. government agencies that serve minority-owned businesses to do so without regard to race.

of The verdict was on ~’s side White business owners claimed the program discriminated against them.

Judge Mark T. Pittman of the Northern District of Texas, appointed by former President Trump, argued that the eligibility requirements for the Minority Business Development Authority (MBDA) violate the Equal Protection Guarantee of the Fifth Amendment.

The ruling was a significant victory for conservative activists seeking to address race-conscious programs in the wake of the Supreme Court’s 2022 ruling dismantling college affirmative action programs, the Associated Press reported. Ta.

Advocates for minority-owned businesses say the ruling is a setback in efforts to level the playing field for business owners of color, who may face barriers to starting or maintaining a business, according to the Associated Press. claims.

The agency is part of the U.S. Department of Commerce and was created exactly 55 years ago under the Nixon administration. Pittman argued that 55 years is “too long.”

In his ruling, Pittman argued that the MBDA and the federal government have “blatantly” violated constitutional rights “over many years.” He added: “Time is up.”

Pittman told the agency that it would no longer impose the “racial and ethnic classifications” used in the past, and that it would no longer impose the “racial and ethnic classifications” used in the past, and that business applicants’ personal characteristics would not be used “in determining eligibility for business center programs.” It ordered that species and ethnicity not be considered or exploited.

He argued that the agency only advertises services for some races and not others. Applicants who are not on the agency’s priority race list can avoid any “social or economic disadvantage” by showing the MBDA that they are not disadvantaged because their race is not on the list. “We can strive to ‘appropriately demonstrate’ the

“That racial presumption has not passed rigorous scrutiny and violates the Equal Protection Guarantee of the Fifth Amendment,” he wrote.

Pittman argued that while the agency’s efforts “may help alleviate the opportunity gap” faced by minority business owners, “two wrongs do not make a right.”

“Although the Agency may intend to serve public groups rather than penalize private groups, the very design of that presumption results in penalizing people who are presumptively ineligible for MBDA benefits.” he wrote.

The agency helps minority-owned businesses obtain loans and government contracts. According to the Associated Press, MBDA helped companies raise more than $1.2 billion in fiscal year 2022, according to its annual report.

The Biden administration expanded the agency’s scope under the 2021 Jobs Act, making it a permanent agency and increasing funding to $550 million over five years, the Associated Press reported.