Home » San Francisco sued over reparations fund alleging unlawful use of taxpayer money

San Francisco sued over reparations fund alleging unlawful use of taxpayer money

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San Francisco is being sued over its reparations fund on grounds that its taxpayer money is being “unlawfully” used on a policy that allegedly violates the Equal Protection Clause.

According to the Pacific Legal Foundation, several San Francisco residents as well as Californians for Equal Rights Foundation, sued San Francisco on Thursday, challenging an ordinance that establishes a fund for Black residents. 

The lawsuit alleges that the ordinance is discriminating on the basis of race as it allows taxpayer money to be funneled into the fund. The plaintiffs said that a win would protect taxpayers from supporting a government-based racially motivated program and establish boundaries for other cities implementing similar policies.

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“Acknowledging past injustice does not give the government license to spend public resources on programs that sort people by race and ancestry today,” said Andrew Quinio, an attorney with the Pacific Legal Foundation. 

“The Constitution requires the city to address proven harm directly, not through sweeping racial and ancestral classifications. This lawsuit is about ensuring that all Americans are treated as individuals under the law and not forced to subsidize government policies that collectively bind them to history that they did not experience or inflict.”

San Francisco officials did not immediately respond to a request for comment from Fox News Digital.

The mayor of San Francisco signed an ordinance that creates a reparations fund that could one day grant each of the city’s eligible Black residents up to $5 million in reparations for alleged historic discrimination and displacement.

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The ordinance, which was passed by the Board of Supervisors in December, was signed by Democratic Mayor Daniel Lurie two days before Christmas. It establishes the legal framework for the fund but does not allocate funds or guarantee payments. The fund can be financed with private donations, foundations and other non-city sources. Any taxpayer-funded reparations payouts would require separate legislation, an identified funding source and mayoral approval. 

However, Lurie told Fox News Digital that no taxpayer money would be paid into the potential pot, citing the city’s $1 billion budget deficit. 

“I was elected to drive San Francisco’s recovery, and that’s what I’m focused on every day,” Lurie said in a statement to Fox News Digital. “We are not allocating money to this fund — with a historic $1 billion budget deficit, we are going to spend our money on making the city safer and cleaner.”

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“The Reparations Plan outlines a variety of methods to provide restitution, compensation and rehabilitation to individuals who are Black and/or descendants of a chattel enslaved person and have experienced a proven harm in San Francisco,” the ordinance reads, in part.

The plaintiffs allege a “misuse of government power” as the city’s Human Rights Commission administers the program.

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According to the complaint, “By directing an agency funded almost entirely by taxpayer dollars to administer funding solely dedicated to implement race-exclusive benefits, the city is using public money, public employees, and public authority to carry out an unconstitutional racial spoils system that allocates benefits and opportunities based on race and ancestry.”

“Taxpayer funds cannot be used to manage the assets of an unlawful program,” Quinio said in a statement to Courthouse News.

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