A federal appeals court has suspended the Fearless Fund's grant program for Black women business owners. The 2-1 decision on Monday has stirred significant debate and concern. 

Conservative Group Calls the Program For Black Women Discriminatory

According to CNN, the lawsuit, filed by the conservative American Alliance for Equal Rights last year, argued that the Atlanta-based venture capital firm's Fearless Strivers Grant Contest is discriminatory. 

The group's leader, Edward Blum, known for his role in pushing the Supreme Court to dismantle affirmative action in college admissions, said that civil rights laws do not allow for racial distinctions, regardless of representation in various fields.

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Response of Fearless Fund to the Suspension

The federal 11th Circuit Court of Appeals in Miami ruled that the fund likely violates federal law against considering race in making contracts.T

he appeals court also indicated that the plaintiffs are likely to succeed in their claim. It then ordered a preliminary injunction, temporarily suspending the grant program while the lawsuit continues. The program provides $20,000 to businesses that are majority owned by Black women.

Fearless Fund CEO Arian Simone told the Associated Press she was disappointed with the ruling, claiming it undermines efforts to promote diversity in corporate America, education, and other areas. She criticized the decision, suggesting it aligns with a narrow perspective favoring a select group.

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