Two students, one white and one Asian, on Wednesday sued a nonprofit fund that provides scholarships for Hispanic students, saying the group illegally discriminates against people of other races and ethnicities.

American Alliance for Equal Rights, an organization dedicated to dismantling racial and ethnic consideration throughout American life, filed the lawsuit in Federal District Court in Washington, D.C., on behalf of the students. The organization argues that the nonprofit, the Hispanic Scholarship Fund, violates the Civil Rights Act by restricting eligibility for its marquee scholars program to those who “identify as being Hispanic.”

The lawsuit comes amid a broader push by conservative activists to eliminate diversity programs and benefits based on race, following a 2023 Supreme Court decision that banned race-based college admissions. The case that reached the Supreme Court was brought by Students for Fair Admissions, founded by Edward Blum, who also founded the American Alliance for Equal Rights and serves as its president.

In the Supreme Court decision, the justices left the door open for race to be considered in some parts of the admissions process. For example, while reading an applicant’s essay, an admissions officer can note the student’s race as long as it is tied to another characteristic, such as courage.

But President Trump has been outspoken about his disdain for diversity and inclusion efforts, and his administration has argued for a more expansive interpretation of the decision.

Trump officials have argued that many programs that pursue racial diversity, or use proxies that might be linked to race, are also against the law. They have pursued investigations into scholarships and other programs that take race into account.

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