PayPal reaches $30 million DOJ settlement over 2020 program for Black-owned businesses

May 14, 2026 - 22:30

PayPal has agreed to pay $30 million to settle a U.S. Department of Justice investigation into a 2020 grant program that was designed to support Black-owned businesses. The settlement resolves allegations that the company discriminated against non-Business owners by restricting access to the funds based on race.

The program, launched in the wake of the George Floyd protests, offered $10,000 grants to Black-owned companies. The DOJ argued that this criteria violated federal anti-discrimination laws, which prohibit businesses receiving federal funds from excluding applicants based on race. PayPal did not admit wrongdoing as part of the settlement but agreed to the payment to avoid prolonged litigation.

This case is part of a broader legal crackdown on corporate diversity, equity, and inclusion initiatives. The agreement comes just one month after IBM agreed to pay $17 million in damages to the DOJ over its DEI programming. Both cases reflect a growing scrutiny of race-conscious business policies under the current administration.

Under the terms of the settlement, PayPal will also be required to implement a compliance program and submit to monitoring for the next three years. The company stated that it remains committed to supporting underserved communities but will ensure all future programs comply with federal law.