One Fell Swoop: Lawsuit Eyes Death Blow To Racial Preferences

A new lawsuit, Revier v. Loeffler, aims to dismantle racial preferences in federal programs beyond college admissions, following the Supreme Court’s 2023 ruling in SFFA v. Harvard. The suit targets regulations that allocate billions of dollars to “Small Disadvantaged Businesses” through no-bid contracts, arguing they violate the Equal Protection Clause. The case builds on the SFFA ruling and challenges the Small Business Administration’s (SBA) definition of “disadvantage,” which has been widely adopted by other federal agencies.

The Biden administration significantly increased federal contracts awarded to these businesses, reaching $78 billion in 2024, but the program has faced allegations of fraud and abuse, including kickbacks and “pass-through” arrangements. Investigations have revealed instances of companies winning contracts based on minority status and then outsourcing the work. The SBA has initiated audits and demanded financial records in response to these concerns.

The plaintiffs, Revier Technology and Young America’s Foundation, argue that the SBA’s regulations, particularly the “rebuttable presumption” of social disadvantage for certain racial groups, are unconstitutional and prevent them from accessing government programs. Recent court rulings in Tennessee, Texas, and Kentucky have already begun to challenge similar presumptions, and the Supreme Court’s previous decisions on racial preferences and administrative law may favor the plaintiffs. The outcome of this case could have far-reaching implications for affirmative action policies across the federal government, potentially ending decades of race-conscious programs.

(Source：Zerohedge)