Federal Race-Based Lending Proposal Brings Threat of Lawsuits

A federal proposal to tie housing aid to one’s race is raising the looming prospect of lawsuits.

The Downpayment Toward Equity Act of 2021 would offer grants to homebuyers of up to $20,000, but an additional $5,000 would be available to “a qualified homebuyer who is a socially and economically disadvantaged individual.”

The law defines such qualifying buyers as individuals within demographics “whose members have historically been subjected to racial or ethnic discrimination within the United States.”

The Wisconsin Institute for Law & Liberty told the Washington Times that it was all-but-certain to sue the federal government if the provision was passed.

“If challenged in court, the agency implementing this policy would have a difficult time justifying this program, and we would anticipate significant litigation,” a lawyer for the group said.