A federal judge granted a permanent injunction against the federal government’s Minority Business Development Agency (MBDA) Wednesday and ...
A federal judge granted a permanent injunction against the federal government’s Minority Business Development Agency (MBDA) Wednesday and declared the organization’s prioritization of certain racial groups as unconstitutional.
The MBDA is an agency within the U.S. Department of Commerce formed in 1969 “dedicated to the growth and global competitiveness of minority business,” and was permanently established by President Joe Biden, according to its website. Trump-appointed United States District Judge Mark Pittman wrote that the MBDA’s mission was in violation of the Equal Protection Clause of the Constitution in a court order after the Wisconsin Institute for Law and Liberty (WILL) filed a complaint against the agency in March 2023.
“While the Agency may intend to serve listed groups, not punish unlisted groups, the very design of its presumption punishes those who are not presumptively entitled to MBDA benefits,” Pittman wrote in the court order. “The federal government may not flagrantly violate such rights with impunity. The MBDA has done so for years. Time’s up.”
The MBDA can “can still operate its Business Centers, it must simply do so without vetting applicants based on race,” according to the court order.
The US Department of Commerce building is seen in Washington, DC, in February 2, 2024. (Photo by Brendan SMIALOWSKI / AFP)
The 2021 Infrastructure Investment and Jobs Act, pushed by Biden, codified the agency into statute and expanded its reach, according to a White House press release.
The MBDA offers programs and services to provide greater access to capital, contracts and markets for minorities, according to its website.
“The federal government created a discriminatory agency that persisted for decades. The Biden Administration re-invigorated it and then refused to help millions of businesses based on race. Those days are now over. Equality must be the law of the land, and through the bravery and persistence of our clients, we are closer to fulfilling that dream,” WILL President Rick Esenberg, said in a press release.
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