DEI Returns – Financial Aid Race-Based Distribution

California lawmakers are now advancing a measure that would allow race-based preferences in financial aid, which is remarkable when you consider that the state constitution has explicitly prohibited such practices since 1996. Proposition 209 banned the state from granting “preferential treatment” based on race in public education, employment, and contracting, yet once again, we see politicians attempting to work around that restriction rather than respect it.

The proposal is tied to broader reparations efforts and would reintroduce preferential treatment in education through financial aid rather than admissions alone. This follows the 2023 Supreme Court decision that race-based admissions violate the Equal Protection Clause, which was expected to settle the issue legally. Instead, we are seeing the continuation of the same objective under different labels.

This is exactly what I have said repeatedly about DEI. These policies were not abandoned but repackaged. Whether it is affirmative action, diversity initiatives, equity programs, or now financial aid adjustments, the objective remains the same.

Every time government interferes with how resources are distributed, it distorts outcomes. The Department of Justice has already indicated that race-based scholarships and similar programs may violate federal law. That highlights the growing conflict between state-level policy and federal enforcement. Trump was unable to simply dissolve DEI programs when there are far-left politicians ruling at the state level.

DEI has effectively become a mechanism for redistribution and race-based division. Opportunities are no longer granted based on merit. Redistribution merely reallocates existing opportunity within a system that is no longer expanding. Not only is it racist, but it is detrimental to the system at large.

California already attempted to repeal its ban on race-based preferences in 2020, and voters rejected that effort. That should have been a clear signal. Instead, policymakers are pursuing the same objective through alternative channels. When merit is replaced by political allocation, productivity declines and the system weakens over time.