McDonald's has opted for a new course of action in handling its scholarship program targeting Latino students. The decision comes as a settlement to a discrimination lawsuit spearheaded by the American Alliance for Equal Rights (AAER), as reported by the Chicago Sun-Times. Formerly requiring applicants to have Hispanic heritage, the HACER National Scholarship Program has been awarding college scholarships since 1985 and has doled out more than $33 million to upwards of 17,000 students, thus far.

The lawsuit, filed in the U.S. District Court for the Middle District of Tennessee, saw AAER arguing that the terms of the HACER scholarship unfairly excluded non-Hispanics. While the company maintains disagreement with the claim, McDonald’s declaration, “settling this lawsuit and evolving the program is the right thing to do for its recipients” was reported by the Chicago-based franchise. Constructive changes in the scholarship are now in effect, with over 3,000 students having already applied for this year's round of educational funding.

Edward Blum, president of AAER and known for challenging affirmative action programs, commended McDonald's on their agreement to alter the scholarship program. “McDonald’s has wisely agreed to end this discriminatory scholarship program,” Blum told the Associated Press. He criticized the company for its past practices, citing that "thousands of students were shut out of this program because they were not the preferred ethnicity."

Despite the settlement and the halt on certain diversity endeavors, McDonald's maintains a vow to inclusion and diversity, underscored by their continued support in promoting diverse workforces and franchise ownerships. The company, intent on adapting to changing times, now refers to its diversity team as the Global Inclusion Team and has extended the application deadline for the HACER scholarship to March 6, to accommodate, new applicants. Having started in 1985, the HACER program previously stipulated applicants to possess at least one parent of Hispanic/Latino heritage among other criteria, a requirement now rendered obsolete.

McDonald's actions reflect a broader trend where major corporations, like John Deere and Walmart, are reevaluating their diversity programming, especially after President Donald Trump's executive order eliminating federal diversity, equity, and inclusion programs. While adjustments have been made, McDonald’s senior leadership, in an open letter, assured stakeholders of their unwavering commitment to inclusion, perceiving a diverse workforce as a competitive advantage.