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In Gratz v. Bollinger (2003), White applicants who were not admitted as undergraduates to the University of Michigan filed suit claiming racial discrimination. In a companion case, Grutter v. Bollinger (2003), another plaintiff challenged the University of Michigan Law School admissions process. Both cases drew extensive media coverage, as approximately 100 amicus (friend of the court) briefs were filed by a variety of organizations to provide the Supreme Court with additional evidence and arguments. The Supreme Court threw out the undergraduate policy (Gratz), while sustaining the other (Grutter).

Gratz and Grutter were controversial because the undergraduate and law school admissions policies at the University of Michigan included voluntary race-based affirmative action to ensure the educational benefits of a diverse student body. Both cases raised the question of whether diversity was an important enough educational goal that the race of applicants could be considered during the admissions process. In Gratz, the Supreme Court ruled that diversity is a compelling interest in higher education. However, the Court ruled that the University's Office of Undergraduate Admissions (OUA) award of a predetermined 20 points for being an underrepresented minority violated the Equal Protection Clause of the U.S. Constitution because it did not include a significant individualized review of applications.

Compelling Interest

When institutions of higher education use race and ethnicity as categories in the admissions process to diversify their student bodies, the Supreme Court applies a two-part test to evaluate whether the use of race passes “strict scrutiny” and is therefore constitutional. First, the Court must determine whether a policy serves a “compelling governmental interest,” a high standard. The goal of the policy must be especially important and supported by sufficient evidence to meet the first part of the test. In reviewing the University of Michigan's admissions policies, the Court ruled that diversity is a compelling interest and resolved a disagreement among the lower federal courts about whether race is a permissible factor in admissions decisions.

The Supreme Court had last ruled on affirmative action in the higher-education context in Regents of the University of California v. Bakke (1978). Although Justice Powell in Bakke stated that diversity was a compelling interest, there had been a debate for 25 years regarding whether the majority of the Court adopted his view. The Court's opinions in Grutter and Gratz clarify that diversity is a compelling interest in the context of higher education. The Court noted the substantial benefits of admitting a diverse student body, including cross-racial understanding, breaking down racial stereotypes, enlightening classroom discussions, better learning outcomes, and enabling all students to understand persons of different races.

Narrowly Tailored Policy

The second prong of the strict scrutiny test requires a policy to be “narrowly tailored” to satisfy the compelling governmental interest. The purpose of the narrow-tailoring test is to make certain that the means chosen “fit” the compelling goal so closely that there is little or no possibility that the motive for the classification was racial prejudice or stereotype. According to the Court, in order for a race-conscious admissions policy to be narrowly tailored, it cannot use a quota system. A racial quota, declared the Court, insulates a group of applicants with certain ethnic or racial characteristics from competition with other applicants. The Court also pointed out that a quota reserves a certain fixed number of opportunities exclusively for certain minority groups and that this is unconstitutional.

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