This July 21, 2012, file photo, shows the exterior of the U.S. Courthouse for the 11th U.S. Circuit Court of Appeals in Atlanta. (AP Photo/Mike Stewart, File)
By Alexandra Olson
A grant program for businesses run by Black women was temporarily blocked by a federal appeals court in a case epitomizing the escalating battle over corporate diversity policies.
The 2-1 decision by the Atlanta-based 11th U.S. Circuit Court of Appeals temporarily prevents the Fearless Fund from running the Strivers Grant Contest, which awards $20,000 to businesses that are at least 51% owned by Black women, among other requirements.
In a statement Sunday, the Atlanta-based Fearless Fund said it would comply with the order but remained confident of ultimately prevailing in the lawsuit. The case was brought by the American Alliance for Equal Rights, a group run by conservative activist Edward Blum, who argues that the fund violates a section of the Civil Rights Act of 1866, which prohibits racial discrimination in contracts. “We strongly disagree with the decision and remain resolute in our mission and commitment to address the unacceptable disparities that exist for Black women and other women of color in the venture capital space,” the Fearless Fund said.
The order, issued Saturday, reversed a ruling Tuesday by U.S. District Judge Thomas W. Thrash which denied the American Alliance's request to halt the program. The majority on the three-judge panel wrote that the Fearless Fund's program's is “racially exclusionary” and that Blum's group is likely to prevail.
“The members of the American Alliance for Equal Rights are gratified that the 11th Circuit has recognized the likelihood that the Fearless Strivers Grant Contest is illegal,” Blum said in a statement. “We look forward to the final resolution of this lawsuit.”
In his dissent, Judge Charles R. Wilson said it was a “perversion of Congressional intent” to use the 1866 act against the Fearless Fund's program, given that the Reconstruction-era law was intended to protect Black people from economic exclusion. Wilson said the lawsuit was unlikely to succeed.
The case has become a test case as the battle over racial considerations shifts to the workplace following the U.S. Supreme Court’s June ruling ending affirmative action in college admissions.
The grant contest is among several programs run by the Fearless Fund, which was established to bridge the gap in funding access for Black female entrepreneurs, who receive less than 1% of venture capital funding. To be eligible for the grants, a business must be at least 51% owned by a Black woman, among other qualifications.
The Fearless Fund has enlisted prominent civil rights lawyers, including Ben Crump, to defend against the lawsuit. The attorneys have argued that the grants are not contracts, but donations protected by the First Amendment.
In its majority opinion, the appellate panel disagreed, writing that the First Amendment “does not give the defendants the right to exclude persons from a contractual regime based on their race.”
Inflation remains hot as the January PPI has increased by 1 percent, twice what analysts had been expecting with a jump of 9.7 over the year. Beth Ann Bovino, the U.S. chief economist, for S&P Global Ratings, joined Cheddar News to discuss the rapid pace of inflation alongside higher wages, predicting the Federal Reserve will act quickly and forcefully this year. "They haven't changed their forecast, yet, that's gonna come out soon. But we expect that a March rate hike is basically pretty much baked in the cake," she said. "We think six rate hikes in total for 2022."
For black history month, Cheddar is highlighting black business leaders who are driving the need for representation forward. On February 10, the U.S. Chamber of Commerce hosted an event called 'Developing the Black-Owned Business Ecosystem.' The virtual event was organized under the lobbying group's two initiatives -- the Equality of Opportunity Initiative, and the Coalition to Back Black Businesses. The event highlighted the developments needed to develop more black-owned businesses in the U.S. Dr. Anthony Wilbon, Dean of the School of Business at Howard University, joined Cheddar News' Closing Bell to discuss his experience as a speaker at the event.
A newly declassified letter by senators Ron Wyden and Martin Heinrich claimed the CIA. has been conducting a Secret Surveillance Program which has been collecting a bulk of data from American citizens. The letter which was written in April of 2021 urges the CIA to come clean about the kind of data it collects and how many Americans have been impacted. According to these two senators, the program did not have the safeguards of congressional oversight.
Art Hogan, Chief Market Strategist at National Securities, joined Cheddar News' Closing Bell, where he says investors are taking a wait-and-see approach when it comes to the situation between Russia and the Ukraine and elaborates on the impact higher oil prices stemming from the conflict would have on the market.
Last week, Senators Ron Wyden of Oregon and Martin Heinrich of New Mexico, Democrats on the Senate Intelligence Committee, wrote a a letter airing concerns that the CIA is collecting the data of American citizens without their consent. The lawmakers fear that the program might be exploiting private data. Morgan Wright, the chief security advisor at cybersecurity firm SentinelOne, joined Cheddar News to discuss the ramifications of the letter. "We don't have all the dots in one place to connect them," said Wright, cautioning against jumping to conclusions.
Russian President Vladimir Putin and his Foreign Minister Sergey Lavrov said that diplomacy is still possible, while U.S. officials warn that an attack on Ukraine is imminent. Cheddar News speaks with James Astill, Washington bureau chief of The Economist on the latest developments in Eastern Europe.
As the number of Russian troops rose to 130,000 along its Ukrainian border, hopes for a diplomatic solution remain among world leaders. Jason McMann, head of geopolitical risk analysis at Morning Consult, joined Cheddar News to break down the fluid situation. "We saw signs pointing towards an increase in tensions between Ukraine and Russia, whereas today we're seeing some signs that the Russian government may be willing to continue down a path of diplomatic negotiations to try and find some sort of non-military solution," he said.
Nancy Pelosi and House Democratic leaders are now planning to amend the stop trading on congressional knowledge act, otherwise known as the 'Stock' Act. This 2012 law governs how members disclose the purchase or sale of stocks and amending it would close a loophole, eliminating the trading of individual stocks by members of congress. Pelosi has consistently opposed a ban on stock trading by lawmakers and congressional staff...so what's changed? Kedric Payne, Vice President of Campaign Legal Center, joins Cheddar News to discuss.
In a 5-4 vote, the U.S. Supreme Court allowed for a controversial new version of the Alabama congressional map to remain in place. The lower court had previously ordered that the state must redraw that congressional map because it violates the Voting Rights Act by diluting the political power of Black voters. Redistricting expert Yurij Rudensky joins Cheddar News to weigh in.
