Legal Challenge Targets Hispanic Scholarship Fund Over Ethnic Eligibility Rules
The American Alliance for Equal Rights filed a lawsuit Wednesday against the Hispanic Scholarship Fund (HSF), alleging that HSF unlawfully excludes non-Hispanic students from its scholarship programs and related benefits.
According to the complaint, HSF has awarded more than $750 million in scholarships and support to over 65,000 students, offering recipients a range of benefits from substantial financial awards to exclusive mentorship opportunities and private seminars. The alliance contends that limiting access by ethnicity violates the Civil Rights Act of 1866 by denying benefits based on race or ethnicity.
The plaintiffs say two students who are members of the American Alliance for Equal Rights "are being harmed" by HSF’s ethnic eligibility rules. The alliance’s attorneys describe the program as "facially discriminatory" and cite precedent from litigation involving Oberlin College to argue that a policy that singles out applicants on the basis of ethnicity can be treated as direct evidence of discriminatory intent.
"HSF is intentionally discriminating based on ethnicity," the alliance's lawyers wrote, adding that HSF leadership has, in their view, signaled a preference against contracting with non-Hispanics through public statements on its Facebook account and content on its website.
The lawsuit arrives amid broader federal scrutiny of diversity, equity and inclusion (DEI) initiatives under the Trump administration — a push welcomed by some conservative activists and criticized by others.
Justin Driver, a Yale law professor and author of The Fall of Affirmative Action, told The New York Times the suit is "the latest salvo in a larger era of racial revanchism," adding that the idea that "there are too many Latinos receiving college scholarships" is not a priority concern for most Americans.
The American Alliance for Equal Rights is asking the court for a temporary restraining order and a preliminary injunction to prevent HSF from closing the current application window or selecting winners while the case proceeds, along with other relief.
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