San Francisco Superior Court Judge Joseph Quinn ruled on June 10, 2026, that a lawsuit challenging the city's race-based reparations fund is premature, sustaining a demurrer against the suit. A demurrer is an objection stating that the evidence presented was not sufficient to proceed for a review by the judge.
A spokesperson for the Pacific Legal Foundation expressed disappointment with the ruling but stated they remain undeterred, indicating plans to amend the complaint or appeal. Quinn granted the Pacific Legal Foundation the opportunity to amend their case.
The lawsuit, filed by the Pacific Legal Foundation, several San Francisco residents, and the Californians for Equal Rights Foundation, challenges an ordinance that establishes a fund for Black residents. The plaintiffs argue that the ordinance discriminates on the basis of race by allowing taxpayer money to be allocated to the fund. They contend that a favorable ruling would protect taxpayers from supporting a government-run, race-based program and set boundaries for other cities implementing similar policies.
Judge Quinn expressed skepticism regarding claims that the reparations plan is discriminatory, stating there is not enough evidence to determine if the program would have racial implications. He noted that both the United States and California Constitutions prohibit the allocation of benefits based on race or lineage.
During the hearing, Quinn questioned whether the possibility of race-conscious actions was sufficient to bring a claim. He indicated that if the plan includes a race-neutral option, the plaintiffs would need to demonstrate how the ordinance is unlawful in every potential application to adequately challenge it.
The reparations fund, signed into law by Democratic Mayor Daniel Lurie in December 2025, could potentially grant eligible Black residents up to $5 million each for alleged historic discrimination and displacement. The ordinance established a legal framework for the fund but did not allocate funds or guarantee payments. Financing for the fund could come from private donations and other non-city sources, with any taxpayer-funded reparations requiring separate legislation and mayoral approval.
