American Alliance for Equal Rights Sues Hispanic Scholarship Fund Over Non-Hispanic Eligibility Restrictions

American Alliance for Equal Rights Takes Legal Action Against Hispanic Scholarship Fund



On December 4, 2025, the American Alliance for Equal Rights (AAER) initiated a federal civil rights lawsuit in the U.S. District Court for the District of Columbia. The case targets the Hispanic Scholarship Fund (HSF) over its eligibility requirements for its flagship HSF Scholars Program. The lawsuit argues that HSF's policies contravene the Civil Rights Act, specifically 42 U.S.C. § 1981, by restricting eligibility to students who self-identify as Hispanic.

The core of the lawsuit highlights the fact that the HSF program categorically excludes qualified applicants of various ethnic backgrounds, including Asian, white, Black, and other non-Hispanic groups. This limitation, according to the plaintiffs, not only denies these students fair access to educational funding but also violates their rights under existing civil rights legislation.

Background of the Lawsuit



HSF’s program is not merely seen as a financial aid initiative but as a contractual agreement wherein applicants are required to create HSF accounts and accept a series of terms, which include extensive use of their personal data and compliance with various waivers and arbitration agreements. In exchange for competing for scholarship funds, mentorship, and exclusive job opportunities, students must fulfill these obligations.

AAER's complaint emphasizes that by conditioning access to these benefits on being at least one-quarter Hispanic or Latino, HSF is unlawfully denying equal rights to non-Hispanic students. Among the plaintiffs are two individuals: a high-achieving Asian-American high school senior with a perfect GPA, and a white law student who is on track to become a third-year law student, both of whom meet the non-ethnic eligibility criteria but are barred from applying simply because they do not identify as Hispanic.

The Wishes of the Plaintiffs



The two students wish to access the financial awards, mentorship, and career opportunities offered by the HSF Scholars Program but find themselves at an impasse due to the current eligibility criteria. The AAER argues that such racial and ethnic preferences are not only discriminatory but also counterproductive to the ideal of merit-based scholarship opportunities.

Legal Requests



The AAER is calling on the court to:
1. Declare the HSF Scholars Program in violation of 42 U.S.C. § 1981.
2. Issue a temporary restraining order and preliminary injunction to prevent HSF from processing current applications while the case is under consideration.
3. Mandate HSF to reevaluate its criteria to eliminate the ethnic condition for program participation.
4. Award nominal damages as well as reasonable attorney fees.

Edward Blum, the president of the AAER, stated, "While the Hispanic Scholarship Fund is certainly entitled to support Hispanic students, it cannot justly exclude talented young individuals from other backgrounds from a significant national scholarship program solely based on their race. Asian Americans, whites, and Black students should have the same opportunity to compete for scholarships based on merit rather than ancestry."

Implications and Future Steps



This lawsuit represents a significant moment in the ongoing debate surrounding affirmative action and merit-based scholarship access. As universities and scholarship organizations increasingly face scrutiny over their admissions policies, the outcome of this case could set a precedent for how scholarships are administered across the nation.

The AAER's legal battle could bring about vital changes to ensure equality in educational funding and access, reinforcing the notion that merit should be the primary criterion for scholarship eligibility, rather than ethnic backgrounds.

As this case proceeds, it will undoubtedly be watched closely by educational institutions, potential scholarship applicants, and civil rights advocates alike, marking a critical juncture for the future of equitable access to education in the United States.

Topics Policy & Public Interest)

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