Hispanic Scholarship Fund on Trial: Implications for Racial Equity Organizations | Nonprofit Quarterly | Civic News. Empowering Nonprofits. Advancing Justice.

"In 1865, the state of Mississippi passed a law allowing police to arrest and forcibly transport "any freedman, free negro, or mulatto" back to their employer if they failed to provide a satisfactory reason for quitting their jobs. The law was part of a slate of laws, known as "Black Codes," passed in Southern states in the immediate aftermath of the Civil War that effectively sought to perpetuate slavery in all but name."

"These codes were a key impetus for the Civil Rights Act of 1866 and a specific provision, codified today as Section 1981, that states in part: "All persons within the jurisdiction of the United States shall have the same right in every State and Territory to make and enforce contracts, to sue, be parties, give evidence, and to the full and equal benefit of all laws and proceedings for the security of persons and property as is enjoyed by white citizens.""

"Today, this same law is being weaponized to try to eliminate programs that provide scholarships and other opportunities not just for African Americans, but also other groups that have faced discriminatory laws and practices. The latest-and potentially most consequential-case is a lawsuit filed in December 2025 against the Hispanic Scholarship Fund (HSF)."

Mississippi's 1865 Black Codes forced freedmen back to employers, prompting the Civil Rights Act of 1866 and Section 1981, which guaranteed equal contract and legal rights regardless of race. This provision was designed to prevent discrimination and protect formerly enslaved people. Today, the same law is being weaponized to eliminate diversity scholarships and opportunities for African Americans and other historically discriminated groups. Edward Blum's American Alliance for Equal Rights filed a December 2025 lawsuit against the Hispanic Scholarship Fund, following Blum's successful challenge to affirmative action in college admissions. Critics argue these cases pervert civil rights protections, using them to entrench rather than advance equality.

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