Attorney General James Takes Legal Action to Support Women of Color Entrepreneurs

NEW YORK – New York Attorney General Letitia James led a coalition of 19 attorneys general urging the U.S. Court of Appeals for the Eleventh Circuit to affirm that the Fearless Foundation can continue its philanthropic efforts to provide grants to women of color entrepreneurs. The American Alliance for Equal Rights is attempting to use a law enacted in 1866 to protect newly freed slaves from discrimination as a basis to stop the Fearless Foundation from uplifting historically marginalized communities by providing grants, mentorship, and assistance. 

“Using a law to protect newly freed slaves from discrimination as a basis to stop charities from investing in women of color entrepreneurs is not only legally wrong, it defies common sense,” said Attorney General James. “Historically marginalized communities have long been overlooked by traditional banks and investment firms, and organizations like Fearless Foundation provide access to capital that allows small business owners and entrepreneurs to thrive. I will always use my office to advance the cause of true justice and equality, and I am proud to take a stand in support of groups that help uplift, empower, and inspire.” 

The plaintiff in this case, the American Alliance for Equal Rights, is claiming that a section of the Civil Rights Act of 1866, 42 U.S.C. § 1981, would prohibit the Fearless Foundation from implementing its grant program for Black women entrepreneurs. Attorney General James and the coalition note that this argument is flawed, as this statute should not be applied to private charitable donations aimed at historically marginalized communities. The coalition further notes that the legislation itself was intended to facilitate the entry of marginalized people and groups into economic life at a time when access to capital was severely limited on racial and gender lines.  

Attorney General James and the coalition explain that Congress enacted 42 U.S.C. § 1981 during Reconstruction to outlaw discrimination that prevented African Americans from exercising basic economic rights, particularly the right to enter into commercial transactions. The coalition notes that Congress passed this law against a background of charitable giving aimed at helping marginalized groups, especially newly freed slaves, and there is no indication that Congress intended to put an end to this practice. Based on these considerations, Attorney General James and the coalition urge the appeals court to reject efforts to shut down the Fearless Foundation, and affirm the lower court decision in this case. 

This amicus brief is part of Attorney General James’ ongoing efforts to promote equality and combat racial discrimination. In October, Attorney General James released a landmark report detailing deep racial disparities in homeownership and access to home financing across the state. In July, Attorney General James led a coalition of 16 attorneys general and New York City in calling on the Federal Communications Commission to expand language access for critical government alerts sent to cell phones, known as Wireless Emergency Alerts. Also in July, Attorney General James reached an agreement with the Mamaroneck Union Free School District over its failure to respond to instances of race- and gender-based bullying and harassment against students. Attorney General James also secured agreements with Long Island real estate brokerages, including Coldwell Banker and Keller Williams Greater Nassau, Keller Williams Realty Elite, and Laffey Real Estate, to resolve alleged discrimination against Black, Hispanic, and other homebuyers of color. In October 2022, Attorney General James released a report on the role of online platforms in the tragic, racially motivated Buffalo mass shooting.  

Joining Attorney General James in filing today’s brief are the attorneys general of Colorado, Connecticut, Delaware, Hawai’i, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia. 

This matter is being handled by Assistant Solicitor General Anagha Sundararajan, Deputy Solicitor General Jeffrey Lang, and Solicitor General Barbara D. Underwood, all of the Division of Appeals and Opinions.