capital · May 16, 2026

PayPal Reaches $30 Million Pact With Justice Department Over Minority Funding

PayPal agreed to forgo approximately $30 million in transaction fees to settle a Justice Department probe into its $530 million plan supporting Black and minority-owned businesses created in 2020 after George Floyd's killing. The settlement ends the probe without monetary payment to the government or admission of liability under the Equal Credit Opportunity Act. PayPal will create a new Small Business Initiative focused on veteran-owned and other small businesses. PayPal agreed to the $30 million fee waiver settlement with the Justice Department announced in mid-May 2026.