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McDonald’s is being sued over a program that gives scholarships to Hispanic students, a move that comes days after the fast-food giant dropped some of its diversity, equity and inclusion (DEI) policies.
The American Alliance for Equal Rights, which opposes preference and discrimination based on race, claims that McDonald’s HACER program discriminates against certain high school students.
last week, McDonald’s said he would adjust some of his DEI policies, which critics called “woke”.
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A Fort Worth location serving as a pilot for the automated program. (CREDITS: McDonald’s corporate / Fox News)
“When corporations say they’re replacing controversial and polarizing programs with more neutral ones, that doesn’t always mean the company has undergone significant change,” AAER President Edward Blum said in a statement. “A corporate press release announcing policy changes is often little more than a public relations exercise.”
“It is astonishing that after what McDonald’s describes as a comprehensive civil rights review of its programs and policies, the Hispanic-only HACER scholarship has not been flagged as a possible violation of our nation’s civil rights laws,” he added.
Changes at McDonald’s include scrapping its “aspirational representation goals,” getting rid of the DEI pledge for its suppliers, changing the name of the diversity team to the Global Inclusion Team, and ending external research.
“But when McDonald’s expressed this new commitment to treat ‘everyone’ fairly, it didn’t mean everything. Even after the civil rights review, McDonald’s chose to continue with a program that openly discriminates against high school students based on their ethnicity,” the lawsuit says.
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McDonald’s said it began discussing the changes months ago, acknowledging that it was considering the legal environment following a 2024 Supreme Court ruling against affirmative action, as well as similar moves by other companies.
FOX Business reached out to AAER and McDonald’s. According to the program, McDonald’s gives $100,000 to 30 students whose at least one parent is Hispanic or Latin American.
“We are in the process of reviewing the complaint and will respond accordingly. However, last week McDonald’s announced the development of our inclusion work, and part of that process will be a program review, in partnership with our franchisees, to ensure these programs align with our vision moving forward,” the company said in a statement to Fox News Digital.
The lawsuit arose out of A high school girl from Arkansasl who sought college scholarships, according to the lawsuit.
“McDonald’s gives unusually large scholarships (up to $100,000) through a program called HACER. The catch? McDonald’s only gives them to Hispanics,” the lawsuit says. “As a non-Hispanic white girl, an Arkansan cannot apply. Despite financial need. Despite not being able to choose or control her ethnic heritage.”
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AAER is asking a judge to issue a temporary injunction before the company announces this year’s award in February.
FOX Business’ Breck Dumas contributed to this report.
