McDonald's alters HACER scholarship after lawsuit — Now open to all

UPDATED: Feb 21, 2025 22:12 IST

McDonald's has updated its HACER Scholarship program, initially open to Hispanic and Latino students, to accept students from all ethnic groups. The has come in response to a lawsuit filed by the American Alliance for Equal Rights (AAER), an anti-affirmative action group.

HACER scholarship history and impact

The HACER Scholarship, created 40 years ago, has aided Hispanic and Latino high school seniors with college scholarships. Since its inception, the program has given away over $33 million in scholarships. This year more than 3,000 applications has been received.

Legal action and settlement

The AAER, led by Edward Blum, sued McDonald's in January, alleging that the scholarship's eligibility requirements, which mandate that applicants should have at least one Latino parent. This has discriminated against students of other ethnicities. The suit was filed on behalf of an Arkansas high school senior with a 3.8 GPA who couldn't apply due to her ethnicity.

Blum was also a central figure in the Supreme Court 2023 decision to prohibit race-based college admissions. The AAER argues that race should not play a role in deciding educational opportunities.

McDonald's response and policy change

Although McDonald's publicly countered the lawsuit's claims, the company settled and adjusted its scholarship requirements. Under the new criteria, students are no longer required to be of Latino heritage but must show a contribution to or commitment toward the Latino community.

McDonald's also extended the HACER application deadline from February 6 to March 6 to enable more students to apply based on the new criteria.

A broader shift in DEI policies

The policy change and lawsuit are part of wider shifts in corporate diversity, equity, and inclusion (DEI) initiatives. In the spring, McDonald's said it would end some DEI initiatives, such as diversity-oriented senior leadership recruitment targets and supplier diversity training programs.

Though the company is committed to supporting Latino students, the widening of HACER's eligibility requirements is an acknowledgment of the changing landscape of affirmative action and corporate diversity policies.