McDonald's changes HACER scholarship program for Latino students amid lawsuit

Shreedhar Rathi | Feb 01, 2025, 10:08 IST
McDonald's changes HACER scholarship program for Latino students amid lawsuit
( Image credit : AP )
McDonald’s revised its HACER National Scholarship Program after a lawsuit from the American Alliance for Equal Rights. The scholarships, previously for students with at least one Latino parent, are now open to any student committed to the Latino community. The application deadline extended to March 6, with over 3,000 applicants this year.
McDonald’s announced Friday that it is modifying its scholarship program for Latino students following a lawsuit filed by a group opposed to affirmative action.

The McDonald’s HACER National Scholarship Program, which was established in 1985, has historically awarded college scholarships to students with at least one Latino parent. The program has distributed over $33 million in scholarships to more than 17,000 students.

On January 12, the American Alliance for Equal Rights, led by conservative activist Edward Blum, filed a lawsuit against McDonald’s, challenging the program. Blum is known for his successful challenges to race-based affirmative action programs, including in college admissions.

In response to the lawsuit, McDonald’s said it has reached a settlement with the American Alliance for Equal Rights, allowing this year’s applicants to be considered. Over 3,000 students have already applied for scholarships this year.

The company revealed that the program will now be open to any student who can show an impact on or commitment to the Latino community, regardless of whether they have Latino heritage.

To accommodate potential new applicants, McDonald’s has extended the scholarship deadline from February 6 to March 6.

Blum praised the settlement, stating, “McDonald’s has wisely agreed to end this discriminatory scholarship program. It is a shame that over many years thousands of students were shut out of this program because they were not the preferred ethnicity.”

This move comes as McDonald’s, along with other companies, reevaluates its diversity practices following the U.S. Supreme Court’s 2023 ruling that prohibited race from being considered in college admissions.

Earlier in January, McDonald’s announced it would retire specific diversity goals for senior leadership positions. The company also ended a program aimed at promoting diversity training among its suppliers and increasing minority representation in leadership roles.

However, McDonald’s leadership reiterated its commitment to inclusion in an open letter to employees and franchisees, emphasizing that a diverse workforce remains a competitive advantage.

The company stated it would continue supporting initiatives that promote a diverse workforce, supplier base, and franchisee network. Its diversity team will now be rebranded as the Global Inclusion Team, and McDonald’s will continue to report demographic data.

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