It’s a ruling reverberating across the country — even if the ramifications aren’t yet clear.
Last week, a U.S. District Court judge in Texas ruled that a federal agency created to assist minority business owners could not use race as a deciding factor in whom to serve, essentially forcing it to open to white entrepreneurs.
The Minority Business Development Agency (MBDA), created in 1969, has offices across the country, including in Atlanta, which now must abide by the judge’s decision unless it is appealed. Resources like help getting federal contracts, business consulting services and access to grants and loans aimed at addressing opportunity gaps for minority businesses now must be available to businesses regardless of race.
Many people see the MBDA court battle as part of a larger trend of lawsuits from conservative activists that aim to dismantle affirmative action in education and business. This is now at least the second federal agency in nine months that has been ordered by a judge to change how they administer minority business programming.
The MBDA is still exploring its options in the case, but in the meantime the agency is continuing its work assisting businesses owned by socially or economically disadvantaged individuals “in a manner consistent with the court’s decision,” Eric Morrissette, acting undersecretary of commerce for minority business development, said in an emailed statement.
A spokesperson did not respond to follow-up questions.
It’s unclear how programs and grants would be affected. The leader of the institute that houses Georgia’s MBDA said the organization would continue working to support business owners.
How the case unfolded
In March 2023, three men — Jeffrey Nuziard, Christian Bruckner and Matthew Piper — sued President Joe Biden, administration officials and the MBDA, alleging agency offices in Texas, Florida and Illinois refused to help them because they are white.
In a 93-page ruling, issued March 5 on the 55th…
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