The federal government is rescinding thousands of payments promised to struggling restaurants.
The Restaurant Revitalization Fund was meant to provide pandemic relief. Initially, the program offered a 21-day exclusivity period for women, military veterans and “socially and economically disadvantaged individuals” to apply first. But a series of lawsuits halted the program, accusing it of being unfair because it prioritizes businesses owned by women and people of color.
One of the lawsuits was filed in the Eastern District of Tennessee by Antonio Vitolo, the owner of Jake’s Bar and Grill in Harriman, Tenn., who said he was discriminated against because he is a white male. The U.S. Court of Appeals for the Sixth Circuit agreed.
In light of the court rulings, nearly 3,000 applicants had their grants revoked.