The Department of Justice emblem is presented at the Justice Department on May 6, 2025, in the nation’s capital. Andrew Harnik/Getty Images
In order to resolve a federal inquiry into an investment initiative intended to promote businesses held by Black individuals and other minorities, PayPal has consented to forgo $30 million in transaction charges, the Justice Department declared Tuesday.
The inquiry is just one of several initiated during the Trump Justice Department, which scrutinized companies that introduced diversity, equity, and inclusion (DEI) efforts, which Republicans have characterized as both illegal and discriminatory.
The DOJ had been investigating whether PayPal’s initiative, which commenced in 2020 following George Floyd’s death amidst national social turmoil, contravened a federal statute that forbids creditors from discriminating against applicants based upon race.
To prevent further examination, the organization has agreed to waive processing fees for approximately $1 billion in transactions — valued at around $30 million — "for qualifying American small businesses that are owned by veterans or involved in farming, manufacturing, or technology."
The announcement from the DOJ does not clarify why PayPal’s transaction fee waivers will be allocated to those particular categories of small businesses.
It has also consented to establish a fresh small business program that disregards "the racial or ethnic background of the business proprietors."
“This Justice Department is fulfilling President Trump’s pledge to eliminate unlawful DEI from all sectors of corporate America,” Acting Attorney General Todd Blanche stated in a declaration regarding the settlement. “American corporations are hereby notified: you will encounter our vigorous enforcement if you employ race or ethnicity to discriminate against competent Americans.”
The resolution does not encompass any admission of culpability by PayPal, and as part of the agreement, the DOJ acknowledges it “has not rendered any judgements or conclusions regarding PayPal violating [the Equal Credit Opportunity Act] or any other federal law related to the economic opportunity fund.”
“For more than two decades, PayPal has aided small businesses in initiating, expanding, and flourishing by broadening access to digital financial instruments,” a PayPal representative conveyed in a statement to ABC News. “We are thrilled to introduce the Small Business Initiative to enrich American small businesses with even more financial prospects.”
Sourse: abcnews.go.com