Conservative groups are using the courts to block efforts to end racial disparities following the U.S. Supreme Court’s controversial ruling that ended affirmative action in education. One of these organizations recently scored a legal victory toward ending a grant program that empowers Black women entrepreneurs. But the legal battle could ultimately find its way to the high court.

The Atlanta Journal-Constitution reports that the 11th Circuit Court of Appeals ruled Saturday (Sept. 30) that Fearless Fund, an Atlanta-based venture capital fund for Black women, must pause awarding $20,000 grants while a lawsuit moves through the court, calling the grant program “racially exclusionary.”

Edward Blum, an anti-affirmative action advocate, founded the nonprofit conservative group American Alliance for Equal Rights that sued Fearless Fund in August. The lawsuit accused Fearless Fund of violating section 1981 of the Civil Rights Act of 1866, Reuters reports. That law bars racial bias in private contracts. According to the lawsuit, Fearless Fund violated the law by giving grants only to Black women.

Blum and a student group were behind the lawsuits against Harvard University and the University of North Carolina that challenged the constitutionality of race-conscious college admissions. They argued that the admissions policy discriminates against Asian and White applicants by giving an unfair advantage to Blacks and Hispanics. The high court agreed and struck down the use of affirmative action in admissions.

In the first round of this legal dispute, U.S. District Court Judge Thomas Thrash Jr., an appointee of former president Bill Clinton, sided with Fearless Fund, denying American Alliance’s motion for a preliminary injunction.

The Washington Post reports that Thrash ruled from the bench on Sept. 26 that Fearless Fund’s grant program qualified as charitable giving, a form of protected speech under the First Amendment.

American Alliance immediately appealed Thrash’s decision to the 11th Circuit, requesting an emergency motion to overturn his ruling temporarily. Fearless Fund’s grant application was supposed to have closed on Sept. 30.

A majority of the three-judge appeals panel sided with American Alliance, saying that Fearless Fund’s grant program is “racially exclusionary.” Judges Robert J. Luck and Andrew L. Brasher, both President Donald Trump appointees, ruled that the First Amendment does not protect Fearless Fund from awarding grants only to Black women.

The Post reports that the appeals court ruling halts the grant process. A separate 11th Circuit panel will decide whether to block Fearless Fund from awarding grants while the lawyers litigate the case in district court.

“The members of the American Alliance for Equal Rights are gratified that the 11th Circuit has recognized the likelihood that the Fearless Strivers Grant Contest is illegal. We look forward to the final resolution of this lawsuit, Blum said after the appeals court ruling, according to The Post.

The third judge on the appeals panel, Judge Charles R. Wilson, a Clinton appointee, disagreed with his colleagues, criticizing American Alliance for using a Reconstruction-era law intended for the economic empowerment of newly freed slaves to stop Fearless Fund’s grant program.

“We strongly disagree with the decision and remain resolute in our mission and commitment to address the unacceptable disparities that exist for Black women and other women of color in the venture capital space.  We all know the abysmal rate of investments for Black women, and we have been working to do what we can to provide some support to our community,” legal counsel for Fearless Fund said in a statement.

“Other groups have issued grants to support their communities for decades and we are simply doing the same to support our community. We will comply with the court’s order but remain strong in our faith and look forward to further appellate review.”

Fearless Fund invests in women of color-led businesses seeking funds to build their businesses.

“Our goal is to create a world where women of color have equal access to the resources and support they need to succeed in business,” the organization’s website states.

Black entrepreneurs have not been able to attract more than 1.1 percent of venture capital (VC) funding in an industry dominated by well-connected White men, according to data from Crunchbase.

Founder and President of NAN Rev. Al Sharpton said the decision “robs the Black community of the ability to fund the ambitions, dreams, and goals of historically excluded people. The Fearless Fund began as a reaction to generations of harsh, concerted economic discrimination. They leveled the playing field for Black women with a dream, and a pair of Trump-appointed judges tilted it back against them today.”

The Supreme Court’s affirmative action ban has given new life to the conservative movement’s efforts to stamp out affirmative action programs through the courts. These groups are targeting corporations – three years after many pledged to diversify following the murder of George Floyd that ignited a racial justice movement, CBS News reports. Target, Kellogg’s and Texas A&M are some employers that have faced lawsuits from conservative nonprofits America First Legal and the Wisconsin Institute for Law and Liberty.