A federal court is set to hear arguments on October 6, 2026, regarding the distribution of approximately $8 million remaining in a fund established for Black farmers who faced discrimination. This decision could significantly impact the agricultural community and the organizations that support it.
The case, known as In Re Black Farmers Discrimination Litigation, stems from a historic settlement reached in 2011, which awarded $1.1 billion to Black farmers who experienced discrimination by the U.S. government. The remaining funds in question are part of a cy pres fund, which is intended to be distributed in a manner that aligns with the original settlement's goals.
Background
The parties involved in this case include Class Counsel, representing the affected Black farmers, and various organizations advocating for their interests, such as the National Black Farmers Association (NBFA) led by John Boyd, Jr. The dispute centers on how to allocate the remaining funds in the cy pres fund, which is designed to support beneficiaries that align with the settlement's intent.
Class Counsel has proposed that the remaining funds be distributed to the Federation of Southern Cooperatives Land Assistance Fund, Inc., which acts as a fiscal sponsor for the Southern Farmers Financial Association (SFFA). However, Boyd and the NBFA oppose this plan, arguing that the funds should instead go to the NBFA. The government has also expressed concerns about the proposed distribution, citing the SFFA's lack of experience in managing large sums of money.
The Ruling
On September 23, 2026, Judge Paul L. Friedman of the District Court for the District of Columbia issued a memorandum opinion and order regarding the pending motions. The court scheduled a hearing for October 6, 2026, to address Class Counsel's motion to approve the distribution of the remaining cy pres funds. The court emphasized that the hearing would focus solely on the distribution of these funds and not on other issues related to the overall settlement.
The court ruled that the limited purpose of the October 6 hearing shall be the disbursement of the money remaining in the cy pres fund and the pending motions of Class Counsel and Mr. Boyd’s alternative proposed plans for that distribution.
During the hearing, Class Counsel will present its case, including calling witnesses to support their recommendation. The government will also have the opportunity to respond and question witnesses. Boyd will then present his own arguments and recommendations.
Impact
The outcome of this case could have lasting implications for Black farmers and the organizations that support them. If the court approves the distribution to the SFFA, it may strengthen that organization’s capacity to assist Black farmers. Conversely, if the court sides with Boyd and the NBFA, it could bolster the NBFA's efforts to advocate for Black farmers' rights and resources.
This ruling may also set a precedent for how cy pres funds are allocated in future settlements involving marginalized communities. The decision could influence similar cases, where leftover funds need to be distributed in a manner that aligns with the original settlement's goals.
What's Next
The court hearing on October 6 will be crucial in determining the fate of the remaining funds. Depending on the outcome, there may be opportunities for appeals or further motions regarding the distribution of these funds. Details on any related cases or future actions were not available in the court filing.