The 2023 Supreme Court decision against affirmative action has sparked legal challenges against diversity and inclusion (DEI) programs, including those run by iFundWomen and Fearless Fund.

Fearless Fund, which supports women of color, was sued by the American Alliance for Equal Rights (AAER), resulting in the suspension and settlement of a grant program for Black women. Despite this setback, the fund remains committed to supporting underrepresented entrepreneurs and recently launched a $200 million fund for underresourced entrepreneurs of all genders.

iFundWomen, which has distributed over $170 million in corporate grants to women entrepreneurs, is facing similar challenges. Founder Karen Cahn reports a sharp decline in corporate funding for women and diverse founders, putting the organization at risk of rebranding or closure.

Both organizations stress the need for legislative changes to protect marginalized communities and their funding initiatives. These challenges highlight the fragility of progress in supporting underrepresented groups.

The AAER’s approach presents a paradox. While claiming to fight for “equal rights,” their actions against race-specific programs designed to help historically marginalized groups may actually perpetuate systemic inequality. By advocating for a colorblind approach, AAER overlooks the distinct barriers faced by women of color and the need for targeted measures to address the disparities.

This situation highlights the tension between formal equality (same rules for everyone) and substantive equality (addressing systemic inequities). The AAER’s legal victories, while purportedly promoting equality, may inadvertently reinforce the very inequalities they claim to fight against.