My MBA Career – Federal judge rules agency supporting minority-owned businesses must assist all races

Last Updated on March 7, 2024 by Robert C. Hoopes

In a landmark ruling, US District Judge Mark Pittman has ordered the Minority Business Development Agency (MBDA) to offer assistance to all individuals, regardless of race. The ruling comes in response to a lawsuit brought by White business owners who claimed the agency’s policies were unconstitutional.

Judge Pittman found that the MBDA’s reliance on a statutory presumption that certain minority groups are socially or economically disadvantaged violated the 14th Amendment. As a result, the judge has permanently barred the agency from considering race or ethnicity in determining eligibility for assistance.

The MBDA, established in 1969 and later enshrined into federal law in 2021, is one of the only federal agencies focused exclusively on minority-owned businesses. This ruling sheds light on the recent Supreme Court decision that colleges and universities can no longer consider race in admissions decisions.

The plaintiffs in the case were three White business owners who were denied MBDA services. The Justice Department, representing MBDA, argued that individuals not included in the agency’s presumptions could still access services by asserting individual social or economic disadvantage.

The Justice Department has declined to comment on the ruling at this time. This decision marks a significant shift in how federal agencies can provide assistance to minority-owned businesses, setting a precedent for equitable treatment regardless of race.