Federal Covid Grants For Minorities Face Appellate Challenge

Second Circuit judges appeared reluctant Wednesday to allow businesses to seek damages from a federal official for prioritizing grant applications from women- and minority-owned businesses in administering the American Rescue Plan, a 2021 Covid relief statute.

“Your quarrel is with Congress,” Judge Reena Raggi said to an attorney for the businesses during oral arguments. “It wasn’t the employee who decided to implement a grant program in an allegedly discriminatory manner.”

Edward Yankelunas, the plaintiffs’ attorney, said it was the administrator of the Small Business Administration who enforced the rules favoring women and racial minorities and directed employees to enforce those …