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Published January 21, 2026

First victory in 2026! San Francisco forced to defund unconstitutional programs due to our lawsuit

AllianceLegalDEI

After nearly two years, San Francisco Board of Supervisors approved a settlement agreement with CFER and our taxpayer co-plaintiffs. According to the agreement, the City and County of San Francisco agreed to permanently defund the following four “guaranteed income” programs.

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CFER

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We are starting the new year on a triumphant note. After nearly two years, San Francisco Board of Supervisors approved a settlement agreement with CFER and our taxpayer co-plaintiffs. According to the agreement, the City and County of San Francisco agreed to permanently defund the following four “guaranteed income” programs:

  • Black Economic Equity Movement (BEEM), which transferred $500/month for one year to eligible participants who are “Black young adults ages 18-24 in San Francisco and Oakland.”
  • Guaranteed Income for Transgender People (GIFT), which gave $1,200/month for a year and a half to participants who are “Transgender, Non-Binary, Gender Non-Confirming, and Intersex.” It was designed to “prioritize enrollment of Black, Indigenous, or People of Color,” as well.
  • Abundant Birth Project Version 1.0 (ABP 1.0), which provided $1,000 - $1,500/month for the duration of a woman’s pregnancy and then for the first two months of the baby’s life to Black and Pacific Islander pregnant women in San Francisco.
  • Abundant Birth Project Version 2.0 (ABP 2.0), which was designed “to provide Black mothers with monthly incomes of $600 to $1,000 for 12 months” and “serve a minimum of 425 individuals from the pregnant priority population.”

With mayoral approval, the settlement was finalized earlier this month. The favorable conclusion of this important legal challenge, for which CFER and our co-plaintiffs were represented by our ally American Civil Rights Project (ACR Project), paralleled our earlier success in prompting Sacramento to close down its race-based child/parent welfare program. The settlement also constitutes CFER’s first major victory in 2026. More importantly, ending these frivolous and unconstitutional government programs serves the public interest for all San Francisco taxpayers and all Californians.

“California and its subdivisions should not need reminding that racial discrimination is illegal. They should comply with American law, even when no one is watching. But we are watching and–when they don’t–we will make sure that either voluntarily or because compelled by the Courts, America’s laws guarantying equal protection prevail,” commented ACR Project Executive Director Dan Morenoff.

As a faithful watchdog dedicated to equal treatment, CFER does not shy away from challenging unequal, discriminatory and illegal government preferences in court. We are always ready and willing, and our legal advocacy partners are mightily able. If you are a CFER member, you can log onto our newly developed member portal to see the current cases we are planning to take on and check if you can help as a member plaintiff. If not, please sign up today and join CFER’s various initiatives for equality, merit and freedom. You can also help power up CFER’s mission and operations with a kind donation.

As always, thank you for the support and trust!


Contact:

Wenyuan Wu

wenyuan.wu@cferfoundation.org

About Californians for Equal Rights Foundation (CFER):

We are a non-partisan and non-profit organization established following the defeat of Proposition 16 in 2020, with a mission to defend and raise public awareness on the cause of equal rights through public education, civic engagement and community outreach. In 1996, California became the first U.S. state to amend its constitution by passing Proposition 209 to ban racial discrimination and preferences. Prop. 209 requires that “the state shall not discriminate against, or grant preferential treatment to, any individual or group on the basis of race, sex, color, ethnicity, or national origin in the operation of public employment, public education, or public contracting.” CFER is dedicated to educating the public on this important constitutional principle of equal treatment.

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© 2026 Californians for Equal Rights Foundation. All rights reserved. CFER is a 501 (c)(3) non-profit recognized by the IRS.

Tax ID Number: 85-2315151