A grant program meant to help black women’s businesses has been paused due to a court order citing that it possibly violates the Civil Rights Act of 1866.
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The Strivers Grant is issued through the venture capitalist firm Fearless Fund’s foundation and is designed to support businesses owned by Black women. According to Tech Crunch, the program was challenged last August by the American Alliance for Equal Rights, which stated that the grant discriminated against non-Black women’s businesses. AAER’s founder, Edward Blum, played a role in overturning university affirmative action.
Despite Fearless Fund’s commitment to fighting the lawsuit, the fund was temporarily paused from distributing the grants last October. The fund filed an appeal, and both parties appeared in the appeals court in January. Blum reportedly argued that the Strivers Grant violated the Civil Rights Act of 1866, while Fearless Fund explained that the grant was a charitable donation protected under the First Amendment. However, the court ruling has temporarily paused Fearless Fund from distributing grants.
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The fund’s representatives said they are reviewing their options and including the possibility of going to trial. Alphonso David, the fund’s lawyer and president of the Global Black Economic Forum, expressed his disappointment in the court’s ruling:
“As the dissenting judge pointed out, the discrimination in access to funding that Fearless Foundation seeks to address is long-standing and irrefutable. This is the first court decision in the 150-plus year history of the post-Civil War civil rights law that has halted private charitable support for any racial or ethnic group.
CEO Arian Simone said they will continue to fight the lawsuit to help future generations accomplish their goals regardless of any obstacles:
“America is supposed to be a nation where one has the freedom to achieve, the freedom to earn, and the freedom to prosper. Yet, when we have attempted to level the playing field for underrepresented groups, our freedoms were stifled. We must keep up this fight for the next generation of girls who deserve to grow up in an America that lets them realize their dreams instead of outlawing them.”
The ruling prompted reactions on social media where users found it unfair that a program dedicated to supporting black businesses is seen as discriminatory.