Date Filed: May 14, 2021
Original Court: U.S. District Court for the Northern District of Texas
Case Status: Victory
Section 5003 of the American Rescue Plan Act provided $28.6 billion for a Restaurant Revitalization Fund to provide relief for restaurants harmed by the COVID-19 pandemic. The U.S. Small Business Administration (SBA) administered this grant program. The statute provides that during the first 21 days of this program the SBA must prioritize applications from women- and minority-owned businesses. That provision overtly discriminates on the basis of race and sex.
Blessed Cajuns runs a Cajun food restaurant in Keller, Texas. TPPF and America First Legal represented Blessed Cajuns in a lawsuit challenging this race-based preference system. TPPF attorneys argued that race- and gender-based preferences violate the Constitution’s promise of equal protection. Less than a month after filing the case, the district court agreed and issued a preliminary injunction that prevents SBA from prioritizing applications based on race and sex. Before the court could issue a permanent injunction, the Restaurant Revitalization Fund had paid out its entire budget and the program expired. Because the preliminary injunction required SBA to give equal consideration to their grant applications, the plaintiffs agreed to voluntarily dismiss the case.
Case Documents:
Plaintiffs’ Motion for Preliminary Injunction
Defendants’ Response Opposing Motion for Preliminary Injunction
Plaintiffs’ Reply in Support of its Motion for Preliminary Injunction