A federal appeals court has blocked a venture fund’s grant contest for Black women entrepreneurs in litigation spearheaded by affirmative action foe Edward Blum that challenged the program as racially discriminatory.

The grant contest is substantially likely to violate the federal ban on racial discrimination in legal contracts under Section 1981 of the 1866 Civil Rights Act, the US Court of Appeals for the Eleventh Circuit ruled Monday. The 2-1 decision overturned a federal district court ruling that sided with Atlanta-based Fearless Fund and found that its Fearless Strivers Grant Contest was likely protected by the First Amendment.

Blum’s American …