DOJ forces PayPal to scrap DEI business initiative in $30 million settlement

Published May 12, 2026 2:08pm ET



The Justice Department announced Tuesday that PayPal agreed to a roughly $30 million settlement to resolve allegations that the company’s diversity, equity, and inclusion investment initiative illegally favored businesses based on race and national origin.

Under the agreement, PayPal will waive processing fees on roughly $1 billion worth of transactions for eligible small businesses as part of a newly created “Small Business Initiative,” according to the settlement agreement announced by top DOJ officials in President Donald Trump‘s administration.

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