Court to hear challenge of DOT affirmative action rule

The Supreme Court re-entered the debate over affirmative action, agreeing Monday to decide whether a federal program to help disadvantaged businesses amounts to unlawful race discrimination, the Associated Press reported. Adarand Constructors Inc. won a major ruling in 1995 that sharply restricted federal affirmative action programs. The justices Monday said they will hear Adarand's challenge to the Transportation Department's revised highway-construction program.

The justices imposed significant limits on affirmative action in 1995, ruling that federal programs offering minorities special help to remedy past discrimination must meet a strict standard. The court said such aid must be narrowly tailored to meet a compelling government interest--a standard few programs can meet.

Adarand had sued over a 1990 Transportation Department program that gave bonuses to highway contractors if at least 10 percent of their subcontracts went to "disadvantaged business enterprises." Companies owned by racial minorities were presumed to be disadvantaged. The Colorado-based Adarand, owned by a white man, said the program was unlawfully based on race.

After the 1995 ruling, Congress reauthorized the law and the Transportation Department revised the program. It kept the presumption that minority-owned businesses are disadvantaged and added the presumption for companies owned by women. In addition, all companies claiming such status must certify they are socially and economically disadvantaged and show that their owner's personal net worth is less than $750,000.