Harmeet Dhillon reaches $30 million resolution with PayPal over unlawful Biden-era DEI preferential loan program

PayPal is set to give up $30 million in fees in a settlement with the Trump administration after the Department of Justice accused the company of discrimination for using a DEI lending program that favored minority-owned businesses.

Assistant Attorney General for Civil Rights at the US Department of Justice Harmeet Dhillon announced the settlement in a video posted to X, where she said, "The United States Department of Justice Civil Rights Division is proud to announce a settlement with PayPal over its discriminatory 2020 program called its Economic Opportunity Fund, in which PayPal made $30 million worth of capital available as loans on a preferential basis only to minority owned businesses."

"This, of course, discriminated against many other types of American businesses who are all entitled to the protection of the Equal Credit Protection Act, which we administer here at the Civil Rights Division. As part of the settlement, PayPal has agreed to create a new small business initiative, and in that it's going to waive processing fees up to $30 million worth for $1 billion of transactions for businesses that are either veteran owned or that are certified by the Small Business Administration as being Small businesses in the fields of farming, manufacturing or technology," she added.

Dhillon said although the move from PayPal may have been "well-meaning," they were engaged in "discrimination against American small businesses."

The 2020 program, known as the Economic Opportunity Fund, had the intention of using $530 million to lift black and minority-owned businesses in the aftermath of George Floyd's death. PayPal has denied any wrongdoing in the case.

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

In a statement given to The Hill, PayPal said, “For more than two decades, PayPal has helped small businesses start, scale, and thrive by expanding access to digital financial tools. We’re excited to launch the Small Business Initiative to infuse American small businesses with even more economic opportunity."

The settlement comes as the Trump administration has been working to eliminate discriminatory practices related to DEI in the workplace as well as in higher education.