Nonprofit Hit With Bias Suit Over Texas Minority-Based Grants

A legal advocacy group led by conservative activist Edward Blum alleged Tuesday that a nonprofit that distributes grants to businesses for women and minorities in Texas violates federal law.

Blum’s organization American Alliance for Equal Rights lawsuit against San Diego-based Founders First Community Development Corporation in the US District Court for the Northern District of Texas is another part of a spate of other legal challenges to programs aimed at promoting diversity.

Founders First discriminates against an unnamed white male AAER member—"Member A"—by opening a contest for tens of thousands of dollars in small business grant money only to people ...