A growing debate over scholarship discrimination intensified this week as the American Alliance for Equal Rights filed a federal lawsuit challenging the Hispanic Scholarship Fund’s race-restricted flagship program. The complaint argues that the fund’s policy—open only to applicants who “identify as being of Hispanic Heritage” and are “at least one-quarter Hispanic/Latino”—unlawfully excludes countless qualified students solely because of their ethnicity.
The lawsuit highlights students with strong academic records who cannot apply simply because they are not Hispanic. One high school senior with a 4.0 GPA and extensive community service work meets every requirement “except one: He is not Hispanic.” A law student entering his final year with a 3.63 GPA likewise satisfies all standards but is barred because he does not “identify as being of Hispanic Heritage.”
According to the lawsuit, this violates the Civil Rights Act of 1866, which prohibits race-based contracting. The program is not a no-strings-attached charity; it includes mentoring and leadership training and therefore functions as a contract. The suit argues that such scholarship discrimination has been illegal for more than 150 years.
The fund has awarded more than $750 million since 1975, and while its mission to assist Hispanic students is widely praised, critics say its method violates federal law. The Supreme Court’s 2023 ruling in Students for Fair Admissions underscored that “eliminating racial discrimination means eliminating all of it,” a principle the plaintiffs say applies directly to the program.
Supporters of the lawsuit argue that no student in America should face a permanent barrier based on race. As the complaint states, the plaintiffs seek only “the chance to apply and be judged on their qualifications.”
