U.S. News
Lawsuit Challenges Federal Race-Based Programs
Clear Facts
- A lawsuit targets the federal government’s practice of presuming certain races as “socially disadvantaged” for special benefits.
- The case challenges the Small Business Administration’s 8(a) designation and similar programs for using race as a factor in awarding contracts and subsidies.
- Recent court actions and regulatory changes question the legality and future of race-based federal programs.
A new legal action seeks to end the government’s use of race as a determinant for program eligibility, claiming this violates constitutional protections.
The lawsuit was filed on behalf of Revier Technologies and Young America’s Foundation after being denied access to opportunities due to not meeting racial classifications.
“The federal government’s pervasive use of race as a proxy for determining who is ‘socially disadvantaged’ — and therefore who receives contracts, grants, loans, investment capital, opportunities, and other benefits — is unconstitutional, and it must be stopped,” the suit says.
Numerous agencies rely on the Small Business Administration’s 8(a) designation, which presumes minorities are disadvantaged under a rule last meaningfully updated in 1998.
The lawsuit cites recent Supreme Court decisions striking down affirmative action, arguing the current rules lack data-driven justification and don’t meet constitutional standards.
The suit notes inconsistencies such as certain heritages being presumptively disadvantaged while others are not—regardless of actual circumstances.
It also argues the government has no clear process for removing groups from the list once added, raising questions about fairness and logic.
SBA Administrator Kelly Loeffler and Attorney General Pam Bondi are named as defendants in the court filing in Louisiana.
The case reflects a broader trend as courts reevaluate the constitutionality of race-based preferences in federal programs.
In 2023, a judge ordered changes in how the SBA determines “disadvantaged” status for contracts, but the underlying regulation stayed the same, allowing similar practices to persist elsewhere.
The Biden administration responded by requiring contractors to submit essays describing personal experiences with discrimination instead of relying solely on race.
Federal transportation programs also use race-based preferences, with over $37 billion earmarked for “disadvantaged” firms in 2021 alone.
In September 2024, a preliminary injunction limited one such program, challenging its compliance with equal protection requirements.
By May 2025, the Trump administration agreed in court that using race- and sex-based presumptions violated constitutional protections and announced it would not defend the law.
In October 2025, a new rule was enacted eliminating race or sex presumptions and requiring applicants to provide individualized evidence of disadvantage.
Petrino, the attorney for Revier Technologies, said his client could now be fairly considered without racial bias. “Our client from Louisiana is from a humble background, he’s faced struggles in life, he’s socially disadvantaged.”
It remains unclear whether new essay requirements will change program outcomes or simply substitute one form of preference for another. SBA has not responded to inquiries on this issue.
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