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The Department of Justice announced a settlement with PayPal, Inc. after the company allegedly pushed “a discriminatory investment program created for Black and minority-owned businesses.”
“This Department of Justice is delivering on President Trump’s vow to root out illegal DEI from every corner of corporate America,” Acting Attorney General Todd Blanche said in a statement Tuesday. “American corporations are on notice: you will face our aggressive enforcement if you use race or national origin to discriminate against qualified Americans.”
In 2020, PayPal launched a one-time $530 million commitment known as the Economic Opportunity Fund to “expand economic opportunity for Black and underrepresented minority businesses and communities.” The Department of Justice investigated this program over potentially violating The Equal Credit Opportunity Act, which prohibits creditors from discriminating based on race or color.
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Though the Justice Department did not determine that PayPal violated the Equal Credit Opportunity Act or any federal law, the department claimed PayPal did not implement the program to counter past examples of discrimination.
The Department of Justice is also not prohibited from bringing action against PayPal for any future violations of the Equal Opportunity Act.
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As part of the settlement, PayPal will launch a new Small Business Initiative and waive processing fees for $1 billion of transactions, or approximately $30 million, for American businesses that are veteran-owned or engaged in farming, manufacturing, or technology.
PayPal has also been instructed to inform employees on the Equal Credit Opportunity Act and provide an annual report on the initiative.
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In a statement to Fox News Digital, a PayPal spokesperson said, “For more than two decades, PayPal has helped small businesses start, scale, and thrive by expanding access to digital financial tools. We’re excited to launch the Small Business Initiative to infuse American small businesses with even more economic opportunity.”
Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division celebrated the decision as further effort by the Trump administration to eliminate discrimination among businesses.
“With this settlement, PayPal agrees that race and national origin should play no part in determining which small businesses deserve its investment and financial support,” Dhillon said.
