Fullilove v. Klutznick, 448 U.S. 448 (1980), was a case in which the United States Supreme Court held that the U.S. Congress could constitutionally use its spending power to remedy the effects of past discrimination.
[1] The case arose as a suit against the enforcement of provisions in a 1977 spending bill that required 10% of federal funds going towards public works programs to go to minority-owned companies.
Chief Justice Burger's decision to allow "benign" (as opposed to "invidious") racial classifications under section 5 of the Fourteenth Amendment was controversial.
The Marshall plurality argued to uphold the program under an equal protection analysis by applying intermediate scrutiny to benign racial classifications.
The plurality opinion noted that Congress could have regulated the practices of contractors on federally funded projects under the Commerce Clause as well.