A group dedicated to ending affirmative action has filed a lawsuit against McDonald’s, accusing the company of unlawfully maintaining a scholarship program that benefits Latino and Hispanic students. The American Alliance for Equal Rights, founded by affirmative action opponent Edward Blum, claims the fast-food giant’s continued support of its HACER National Scholarships Program discriminates against students from other ethnic groups.
The lawsuit, filed in federal court in Nashville on Sunday, takes aim at McDonald’s decision to keep the decades-old program intact after rolling back several diversity initiatives. The HACER National Scholarships, established in 1985, have awarded over $33 million in scholarships, providing up to $100,000 for 30 Latino and Hispanic students annually. However, Blum’s group contends that the program’s eligibility criteria — which require applicants to have at least one parent of Hispanic or Latino heritage — unfairly excludes students from other racial and ethnic backgrounds, including one of the group’s members, a white high school student in Arkansas.
The lawsuit argues that the scholarship program violates Section 1981 of the Civil Rights Act of 1866, a law that prohibits racial discrimination in contracting. The plaintiffs are asking a federal judge to issue an injunction halting McDonald’s use of race and ethnicity as factors in awarding scholarships.
Edward Blum, in a statement, emphasized that the goal of the lawsuit is to ensure that under-resourced high school students from all backgrounds, regardless of ethnic heritage, have equal access to scholarship opportunities.
In response, McDonald’s said it is reviewing the complaint and its ongoing diversity initiatives. The company, which recently announced changes to its diversity practices due to the evolving legal landscape in the United States, added that it is reassessing all its programs to ensure they align with its vision moving forward. The company also referenced the U.S. Supreme Court’s recent decision that barred race-based considerations in college admissions, a ruling that has led some companies, including Walmart, to reconsider their diversity policies.
Blum’s group, along with others, has also filed lawsuits targeting corporate diversity programs, such as scholarship and fellowship opportunities aimed at benefiting underrepresented minority groups. In a similar case last month, a federal judge declined to dismiss a lawsuit against Southwest Airlines over a discontinued program offering free flights to Hispanic college students.
As the legal landscape around diversity initiatives continues to evolve, McDonald’s and other companies may face additional challenges regarding their diversity programs.
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