When I first heard the news about Oregon’s set-aside of $62 million in COVID relief, it was because Maria Garcia was denied funds.
Maria Garcia, owner of the Revolucion Coffee House in Portland, applied for support. She was denied because her business “does not meet the criteria because 0% of its owners identify as Black.”
She sued for denial of Equal Protection, seeking to enjoin the distribution of monies from the Oregon Cares Fund.
In July the Oregon Legislature Emergency Board allotted $200 million to assist small businesses suffering losses because of the pandemic and government-ordered shutdowns. Of the total, $62 million was set aside for the Oregon Cares Fund, whose website describes it as “a Fund for Black people, Black-owned businesses, and Black community based organizations.” Black families are eligible for up to $3,000 and black-owned businesses for up to $100,000.
Are black people and black-owned businesses at risk due to the pandemic? Of course. And based on disparate outcomes, black people are at greater risk than white people, although the reason why isn’t often mentioned in polite company. To compensate for the disparate outcomes, the Oregon legislature set aside this fund for black, and only black, people and business.
Data and anecdotes around the country suggested that the coronavirus was disproportionately killing Black people. Locally, Black business owners had begun fretting about their livelihoods, as stay-at-home orders and various other measures were put into place. Many did not have valuable houses they could tap for capital, and requests for government assistance had gone nowhere.
There is no information about how valuable Maria Garcia’s house might be, or even whether she had a house. Not everybody has a valuable house to tap for capital, despite their “privilege.”
After convening several virtual meetings, the civic leaders proposed a bold and novel solution that state lawmakers approved in July. The state would earmark $62 million of its $1.4 billion in federal Covid-19 relief money to provide grants to Black residents, business owners and community organizations enduring pandemic-related hardships.
“It was finally being honest: This is who needs this support right now,” said Lew Frederick, a state senator who is Black.
While it might well be true that the pandemic is wreaking havoc with black-owned businesses, it’s also true that the same is happening with white and brown-owned businesses, woman-owned businesses and the businesses of one-legged deaf people. What, then, explains Senator Frederick’s claim to “finally being honest,” that funds should be earmarked only for black people?
Oregon’s long history of anti-Black racism has fueled much of the advocacy for the state’s fund. And while other racial groups have said they supported it, critics have argued that Black people are not the only ones who have faced discrimination in the state.
Some Black residents, who make up about 2 percent of the state’s population, said that argument was a distraction.
The argument is that this earmark is, in effect, a state set-aside of federal funds for the purpose of making reparations for historic discrimination. The circumstances for black people and businesses differ from those of other races and identity groups because of past discrimination, which has prevented black people from amassing generational wealth to weather the storm.
But just as racial exclusion is unlawful and unconstitutional when used to exclude black people, is it any less unlawful when used to exclude all but black people?
Many of today’s economic and health disparities stem from past policies and practices that were explicitly racist, some social scientists say, arguing that measures aimed at particular races were necessary to undo the damage. But courts have set a high bar for allowing the clear use of race in legislation. To get around the legal hurdles, policymakers tend to rely on proxies for race — like ZIP codes and socioeconomic status — when designing measures they hope will benefit marginalized racial groups.
The argument in favor of the fund is that black people suffer from particularized issues, such as lack of home ownership and banking relationships, that enable them to obtain funding, because past efforts to alleviate the disparate outcomes of discrimination have failed to produce parity.
Lawyers defending the Oregon Cares Fund have argued that the state has a duty to ensure that the distribution of Covid-19 relief funds does not perpetuate the disparities Black residents face. That means targeting Black residents for relief because other efforts to address inequality have failed, said Janelle Bynum, a state representative who is Black.
While this argument has surface appeal, is a black only set-aside the only mechanism for ensuring that relief funds do not discriminate against black people?
“Without that intentionality, without them actually caring that the money flows through our communities, they’ll never have to do anything to change the status quo,” she said. “I’m not OK with that.”
Is the proper means of addressing racism against black people to be racist for black people? Does the Fourteenth Amendment permit such unequal protection?
Over the decades, various remedies to address discrimination have been met with legal challenges. Supreme Court rulings have established that race-based policies are constitutional only if they achieve a compelling governmental interest and are narrowly tailored to do so. The court has most notably allowed race to be used as a factor in college admissions to achieve student diversity. But the court in recent decades has also sided against one of the original rationales for affirmative action policies — to undo past discrimination and its lingering effect.
“You have to show that there’s this really close nexus between why you’re using race and the outcome you’re seeking,” said Melissa Murray, a professor of law at New York University. “And I think here it’s going to be a real question as to whether funding just Black businesses through this Cares fund is actually the only way that you could address the problems that Black Oregonians have experienced during this particular period.”
Of course, Prof. Murray’s “really close nexus” fails to distinguish the use of race as an ameliorative factor in the calculus as opposed to the sine qua non, that no one who is not black will be given money by the Oregon Cares Fund. Can a pure race-based analysis ever survive strict scrutiny, even if there is a strong belief that it serves a very good, very trendy, belief that there is good and bad racism, and there is a duty to engage in blatant racism provided it’s the popular type?
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I always forget to include
homelesshouse challenged people.“House challenged”?!? As if that’s the ideal they are being judged against?
I can’t even with this residence normativity. “House nonconforming” plz k thx bye
Racial discrimination at its finest. How about Asian small businesses?
Don’t black people deserve to stand on their own two feet like anyone else? I am reminded of the writings of Dr. Williams. Prior to the advent of liberalism in its worst form, metrics on black society were at least as good as those on white society and some cases better. It only took one generation of the welfare state to destroy that.
In the days of the British Empire, someone asked a prominent Indian politician what they could do to help the Indian people. The response was to “please stop helping us.”
The issue here is whether this is can survive strict scrutiny. Law blog, remember?
Oops. Sorry. Just angry after spewing my morning coffee all over the screen.
As to whether it should survive strict scrutiny, no. Whether it will, probably.
For some years after the Crowson case in Richmond, there was a vestigial theory that purely race-based set-asides were allowable if federally funded. This was based on the old Fullilove v. Klutznick case, but made no sense as it essentially posited that equal protection was different for different levels of government. In 1995, the Adarand Constructors v Pena case rejected the notion that race-based set asides were OK if federally funded. Oregon is going to lose this case, and probably will have to pay a large attorney fee award in the process.
I can grok the reasoning behind Fullilove v. Klutznick: the idea being that the states (OK, mostly the South) have historically proven themselves to be untrustworthy when it comes to discrimination on the basis of race, but it was the titanic effort of the federal government that tackled this and, as the elected officials representing all Americans, the feds are uniquely positioned to fairly and with large popular consent adjudicate discrepancies based on race. A relic of its time, yes, but it made sense when decided, even if its reasoning was no longer applicable in the 90s.
I don’t see how it can survive strict scrutiny, it doesn’t even come close to trying to do so. If a claim of disproportionate impact based on race, followed by counting race as the most important factor to correct the impact, were a legitimate mechanism to survive strict scrutiny, we may as well just throw out the Equal Protection Clause when it comes to race and treat people as avatars of their racial community rather than individual U.S. citizens.
I won’t even bother listing all the alternative scenarios and parade of horribles that this line or reasoning leads to, but we had just last month important Ivy League consultants to the CDC making rationing decisions on a potentially live-saving vaccine, where the racial distribution of various demographics should be an important factor because of social justice and equity; a couple months before that, the City of Francisco trialled a program that would give money and birthing support to black mothers only, because apparently black mothers are more likely to have underweight children, preemies, post-birth complications, etc. Many academics have decided that any disparity (when it’s to the disadvantage of black people at least) can only be caused by racism, so explicit discrimination on race is the only mechanism to remedy that: under that line of thinking, it’s ipso facto narrowly tailored, because in their view you tackle racism with antiracism. So giving or withholding medical care now can be racially weighted by the people pushing these initiatives, it’s not just a couple seats in a college classroom anymore; the slippery slope may be a logical fallacy, but it is not a jurisprudential one.
Outside of the academy, though, the Supreme Court has always been very cagey on what it will take to survive strict scrutiny, and in practice it has been that nothing will survive when racial classifications are used even if the correlation between race and other factors is very strong. The only exception I can think of is that one case where California prisons were segregating inmates by race because prison gangs organized themselves by race, leading to violent riots and murders.
Given the tenor of the times, I would anticipate seeing this tested in ways no one ever contemplated since 1964.
Well, if the logic of that California prison segregation case holds, violent riots by supporters of racial quotas, set-asides, and other self-styled anti-racist measures would seem to be a way of satisfying strict scrutiny. Maybe Oregonian politicians were premature in condmening the anarchist rioters?
I sincerely hope so. I hope that racial set asides have the living crap beat out them.
Oregon really has to be hoping for the Court to reverse existing precedents to allow this. I just don’t see the current Court getting there. First, in the years between the 1977 set-aside legislation upheld in Fullilove and the 1995 decision in Adarand Constructors, race-based set-asides did not prove to be a solution. Second, it will be hard to rationally conclude that racial discrimination is the logical remedy for racial discrimination. If the government is not in that business, it needs to be not in that business. Justice O’Connor made a fair point in Croson that constitutional rights to equal protection have to mean something more than whatever is convenient per the racial politics of the day.
“Many academics have decided that any disparity …can only be caused by racism, ”
So, the short man with the mustache was right all along! Hang on, under the Boss’ rules I can say ‘the H-man’..
Anyway, as this laughable farce plays out you will have to tackle the real questions that other countries have failed on.. How much black (or Black, I haven’t figured that one out yet) do you need in you to qualify?
In the end the lawmakers give up and say “If you identify as a xxx”, which leads to absolutely white-looking people queuing up for the funds, and then the next set of lawsuits as they get rejected on their looks.
Its also wonderful to see the South Africans were right in their comments about the countries who took part in the sanctions, they ARE just as racist as the Govt there was.