McDonald’s said Friday it is changing — but not eliminating — a scholarship program for Latino students after it was sued by a group that opposes affirmative action.
McDonald’s HACER National Scholarship Program, which was founded in 1985, awards college scholarships to students with at least one Latino parent. The program has awarded more than $33 million in scholarships to more than 17,000 students.
On Jan. 12, the American Alliance for Equal Rights sued McDonald’s over the HACER program. The alliance, which challenges programs that use race or ethnicity as a factor in their decisions, is run by Edward Blum, the conservative activist who also successfully challenged affirmative action programs in college admissions.
On Friday, McDonald’s said it reached a settlement with the American Alliance for Equal Rights that will allow it to consider this year’s applicants. The Chicago company said more than 3,000 students have already applied for this year’s scholarships.
McDonald’s said the program will now be open to any student who can demonstrate an impact on or commitment to the Latino community. Applicants no longer need to have at least one Latino parent.
McDonald’s said it will extend the deadline for this year’s scholarships from Feb. 6 to March 6 to accommodate any new applicants.
Blum applauded the settlement Friday.
“McDonald’s has wisely agreed to end this discriminatory scholarship program,” Blum said. “It is a shame that over many years thousands of students were shut out of this program because they were not the preferred ethnicity.”
McDonald’s is one of many companies that have halted some diversity efforts in the wake of the 2023 U.S. Supreme Court ruling that banned race as a factor in college admissions.
Earlier in January, McDonald’s said it would retire specific goals for achieving diversity at senior leadership levels. It also ended a program that encouraged its suppliers to develop diversity training and to increase the number of minority group members represented within their own leadership ranks.
But in an open letter to employees and franchisees, McDonald’s senior leadership team said it remains committed to inclusion and believes a diverse workforce is a competitive advantage.
McDonald’s said it would continue to support efforts that ensure a diverse base of employees, suppliers and franchisees, but its diversity team will now be referred to as the Global Inclusion Team. The company said it would also continue to report its demographic information.
