McDonald’s resolves legal dispute regarding Latino scholarship initiative by allowing non-Latino applicants to participate.

On Friday, McDonald’s announced revisions to its scholarship program aimed at Latino students, amidst a legal challenge regarding its affirmative action policies. The HACER National Scholarship Program, established in 1985, has provided college scholarships to individuals with at least one Latino parent, distributing over $33 million to more than 17,000 students to date.

The program came under scrutiny when, on January 12, the American Alliance for Equal Rights filed a lawsuit against McDonald’s, targeting the HACER initiative. The alliance, led by conservative activist Edward Blum, focuses on contesting programs that incorporate race or ethnicity into their selection processes. Blum has previously had success in challenging affirmative action in college admissions.

In response to the lawsuit, McDonald’s revealed that it has reached an agreement with the American Alliance for Equal Rights regarding the scholarship program. The company confirmed that more than 3,000 students have already submitted their applications for this year’s funding. Under the revised guidelines, the HACER program will be accessible to any student who can show a commitment to or impact on the Latino community, removing the requirement of having at least one Latino parent.

To provide additional time for prospective applicants, McDonald’s has extended the scholarship deadline from February 6 to March 6. Blum praised this decision, stating that it was a wise move to eliminate the scholarship’s previous restrictions based on ethnicity. He expressed disappointment over the past exclusivity of the program, which he claimed had barred many deserving students from participating.

This shift at McDonald’s reflects a broader trend as various corporations reassess their diversity initiatives following the U.S. Supreme Court ruling in 2023 that prohibited the use of race in college admissions. Earlier this month, McDonald’s also announced the retirement of specific diversity targets aimed at senior leadership positions and discontinued a program that advocated for diversity training among its suppliers to improve representation of minority groups in leadership roles.

Notably, McDonald’s senior leadership has communicated a commitment to inclusivity, emphasizing the belief that a diverse workforce offers a competitive edge. The company plans to continue advocating for a varied base of employees, suppliers, and franchisees. However, it has decided to rebrand its diversity team, now identifying it as the Global Inclusion Team, while still pledging to report demographic data.