By MELISSA ANGELL
The Minority Business Development Agency (MBDA) is the latest target in the wave of anti-DEI lawsuits recently filed by conservative groups — and the agency could get dissolved completely.
The MBDA — which falls under the Department of Commerce — helps level the business playing field for minority-owned companies by providing technical assistance, helping companies raise capital, and more. President Richard Nixon created it in 1969, but President Joe Biden’s bipartisan infrastructure bill gave the agency permanent status in 2021.
Now, the MBDA finds itself in the throes of legal complaints lodged by three small-business owners earlier this year. Entrepreneurs Jeffrey Nuziard, Matthew Piper, and Christian Bruckner — all of whom are white men — launched their lawsuit back in March, arguing that the MBDA is unlawful because it sets aside aid only for minority-owned businesses.
“Plaintiffs have sustained harms to their dignity by visiting MBDA websites (and in one case, emailing directly with MBDA staff) and learning that the United States government, through defendants’ actions, does not consider them equal based on their race,” the complaint reads.
The plaintiffs say they are interested in tapping into the MBDA’s services, but purportedly cannot do so because of their race.
Nuziard, who runs a sexual wellness center that treats erectile dysfunction, and Piper, who founded an architecture firm, are interested in MBDA assistance but cannot access that aid because they are white, the complaint says. Bruckner, who became disabled after a car wreck in 1989, is interested in the MBDA’s support in helping his project management company nab new contracts.
As the Washington Post pointed out in an article published on Monday, a decision is coming soon. Next year, U.S. District Judge Mark T. Pittman is expected to weigh in on the MBDA’s constitutionality. Even if Judge Pittman preserves the agency, he could direct it to remove the word “minority” from its name.
Legislation like this isn’t new, and it’s not even Bruckner’s first rodeo: The Florida businessman sued the Biden administration over the $1.2 trillion bipartisan infrastructure law last year, arguing that the government was discriminating against white men by carving out contracts for businesses owned by minorities and women. A Florida federal judge ruled that Bruckner’s argument didn’t pass muster and dismissed the case in March.
This wave of legal action comes three years after companies nationwide furiously revamped diversity, equity, and inclusion strategies after George Floyd’s murder prompted a racial reckoning. Companies of all sizes established and bolstered DEI programs, hiring chief diversity officers into their C-suites and committing to fostering more diverse workforces.
But now, the tune is changing. Tech companies like Amazon, Meta, and Microsoft have all slashed their DEI headcounts in recent months. Progress appears to be further unwinding following the Supreme Court’s June decision to axe the use of affirmative action in college admissions.
Certain companies are now trying to get ahead of litigation. Earlier this week, Reuters reported that JPMorgan Chase and five other large companies have recently toned down their DEI policies, with some modifying and even removing mentions of programs geared toward underrepresented employee groups.
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