DOJ forces PayPal to scrap DEI business initiative in $30 million settlement

The Justice Department announced Tuesday that PayPal agreed to a roughly $30 million settlement to resolve allegations that the company’s diversity, equity, and inclusion investment initiative illegally favored businesses based on race and national origin.

Under the agreement, PayPal will waive processing fees on roughly $1 billion worth of transactions for eligible small businesses as part of a newly created “Small Business Initiative,” according to the settlement agreement announced by top DOJ officials in President Donald Trump‘s administration.

“This Department of Justice is delivering on President Trump’s vow to root out illegal DEI from every corner of corporate America,” acting Attorney General Todd Blanche said in a statement. “American corporations are on notice: you will face our aggressive enforcement if you use race or national origin to discriminate against qualified Americans.”

The initiative will apply to veteran-owned businesses and companies engaged in farming, manufacturing, and technology, including artificial intelligence, regardless of race