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February 2nd at the U.S. Department of Commerce building in Washington, DC.
Washington
CNN
—
A federal judge in Texas said Tuesday that a U.S. Commerce Department agency designed to help minority-owned businesses must provide assistance to all individuals, regardless of race, and its policy He agreed with white business owners who argued that it was unconstitutional.
The ruling by U.S. District Judge Mark Pittman, an appointee of former President Donald Trump, comes after several white business owners filed a lawsuit against the Minority Enterprise Development Agency, which is “dedicated to the growth and global competitiveness of minority businesses.” It originates from. According to the website.
Pittman argues that the agency is violating the Constitutional Amendment by relying on the statutory presumption that members of certain minority groups are “socially or economically disadvantaged…and therefore entitled to services.” It said it violated Article 14's equal protection clause. The list of groups includes African Americans, Asian Americans, Latinos, Native Americans, and more.
The judge ruled that the agency is denying assistance from one of the agency's dozens of business centers, which help companies secure funding and compete for contracts, “by taking into account or taking advantage of the applicant's race or ethnicity. Permanently prohibited from determining whether or not a person is entitled to
“The plaintiffs all encountered the same roadblock when they sought MBDA programming. Because they are not on the agency's magic list, the agency presumes they are not disadvantaged,” Pittman said. he wrote.
“If the court is correct in what it means when it prioritizes constitutional rights, then the federal government may not be punished for grossly infringing on those rights,” the judge wrote. wrote. “MBDA has been doing that for years. Time is up.”
MBDA is one of the only federal agencies dedicated to the advancement and advocacy of minority-owned businesses. It was established by the Nixon administration in 1969 as a division of the U.S. Department of Commerce and later enacted into federal law in 2021.
In recent years, conservatives have increasingly turned to federal court in Texas to challenge specific federal programs and actions. The Fort Worth District of the Northern District of Texas, where Pittman is one of the few sitting judges, has become a particularly popular venue given its conservative leanings. Pittman has previously ruled on controversial decisions regarding the Biden administration's student debt relief policy and state laws that prohibit people between the ages of 18 and 20 from carrying handguns in public.
“As long as the MBDA is providing services based on a presumption of unconstitutionality, it has been 55 years too long,” Pittman said in his latest ruling. “Today the clock runs out. “Yesterday is not something we can recover from, but tomorrow is ours to win or lose.''
Tuesday's ruling underscores the impact of last year's landmark Supreme Court ruling that said colleges can no longer consider race as a specific basis for granting admissions. Citing the court's majority opinion in the case, Pittman said, “Although it concerns college admissions, there is nothing in the decision to indicate that the court's decision should be limited to that context.” I wrote.
“Like Harvard's program at SFFA, MBDA believes there are inherent advantages to 'race for race',” he wrote. “This disregard for racial needs and race-neutral options is unconstitutional.”
The plaintiffs at the center of this case were three white business owners who were denied MBDA services. They sued the agency in March 2023, and Pittman last year temporarily blocked local business centers from denying assistance while the lawsuit progressed. His new order applies to the agency nationwide.
“Members of groups that are not presumed to be socially or economically disadvantaged, regardless of race, apply for a presumption of disadvantage,” Justice Department attorneys representing the MBDA wrote in court documents. “It is possible,” he said, refuting the plaintiff's claim.
“And while the application process may vary for individuals who are not included in the MBDA presumption, avenues exist to access MBDA Business Center services through an individual's social or economic disadvantage claim,” they said. He told the court last year.
The Justice Department declined to comment on the ruling.
