Federal Judge Rules That The Minority Business Development Agency Must Serve All Races

A federal judge has ordered the Minority Business Development Agency (MBDA) to extend its services to all racial and ethnic groups, not just minorities. 

Judge Mark T. Pittman of the U.S. District Court for the Northern District of Texas made this landmark decision.

MBDA: What Has Happened?

Founded during the Nixon administration, the MBDA’s primary mission has been to assist minority-owned businesses. 

However, Judge Pittman’s ruling challenges this focus, stating that the presumption that white business owners are not disadvantaged violates the 14th Amendment’s guarantee of equal protection under the law.

As a result, Judge Pittman, a Trump appointee, has permanently barred the agency from serving only minority groups.

Pittman cited the need to uphold constitutional rights against racial discrimination, even if well-intentioned.

Plaintiffs in this case, represented by Dan Lennington of the Wisconsin Institute for Law and Liberty, argued that the MBDA’s policies were unconstitutional. 

They sought assistance from the agency but were denied based on their race. 

Lennington advocates for this ruling to set a precedent against all race-conscious practices, challenging the notion of automatic disadvantage based on racial categorization.

A Negative Trend For DEI

The ruling has sparked varied reactions. 

Marc H. Morial of the National Urban League called for an immediate appeal, emphasizing the necessity of the MBDA’s focus on businesses historically excluded from mainstream economic opportunities. 

“The decision is wrong and stands for a narrow retrogressive view of the Constitution,” Morial told the New York Times.

This decision could significantly impact the MBDA, which operates with a $550 million annual budget and supports businesses through financial aid and strategic advice. 

The judge’s decision aligns with a recent trend in court rulings that have questioned and often overturned federal affirmative-action mandates, including a notable Supreme Court decision that affected race-conscious college admissions.