A federal judge in Texas delivered a significant ruling, stating that the U.S. Minority Business Development Agency (MBDA) must extend its services to disadvantaged entrepreneurs of all racial and ethnic backgrounds, including whites.
Judge Mark Pittman, appointed by former President Donald Trump in 2019, made this decision, siding with two white businessmen who sued the MBDA after being denied assistance based on their race.
The plaintiffs were informed that they did not qualify for agency support because they did not belong to any of the racial or ethnic groups listed as eligible minorities. Pittman found this presumption unconstitutional, citing the U.S. Constitution’s equal protection clause.
He referenced a recent Supreme Court ruling that struck down race-conscious admissions policies in universities.
While MBDA argued that its policies aimed to address past discrimination, Pittman disagreed, stating that such measures penalized non-minorities. As part of his decision, Pittman issued a permanent injunction, preventing the agency from using race or ethnicity as a criterion for determining eligibility for its programs.
Originally, three white businessmen filed the lawsuit, claiming they were unfairly excluded from MBDA assistance. Although one plaintiff was dismissed from the case due to lack of standing, the judge’s ruling applies to the agency as a whole and all applicants.
Established in 1969 as the Office of Minority Business Enterprise and made permanent in 2021, the MBDA faced criticism for its exclusionary practices. President Joe Biden, Commerce Secretary Gina Raimondo, and Donald Cravins, undersecretary for minority business development, were also named as defendants in the case.
