PayPal Settles With Trump's Justice Department for $30 Million Over Allegedly 'Unlawful DEI' Initiative [View all]

Source: MEDIAite

May 12th, 2026, 11:38 am


President Donald Trump’s Department of Justice announced on Tuesday that PayPal had agreed to a $30 million settlement over an “unlawful DEI” initiative at the company which discriminated based on race. “Today, the Justice Department announced a settlement with PayPal Inc. to resolve a fair lending investigation into a discriminatory investment program created for black and minority-owned businesses,” Trump’s DOJ announced in a press release:

The settlement requires PayPal to launch a new Small Business Initiative that excludes criteria based on race, national origin, or other protected characteristics. As part of the initiative, PayPal will waive processing fees for $1 billion of transactions – a value of approximately $30 million – for eligible American small businesses that are veteran-owned or engaged in farming, manufacturing, or technology.

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In addition to fee waivers, as part of the settlement PayPal will designate a director of the Small Business Initiative, conduct an assessment of the needs of American small businesses and determine how PayPal can best support them, submit plans and proposals for the initiative to the United States, provide training to employees on the Equal Credit Opportunity Act, and report on the initiative annually.

Notably, the agreement between the two parties stipulates that “The United States has not made any determinations or findings regarding PayPal violating ECOA or any other federal law,” and that it “is not an admission or finding in whole or in part by either party, and PayPal expressly denies any liability related to the economic opportunity fund.”

Read more: https://www.mediaite.com/politics/paypal-settles-with-trumps-justice-department-for-30-million-over-unlawful-dei-initiative-that-discriminated-against-white-americans/