In Fullilove v. Klutznick, the U.S. Supreme Court upholds a 1977 federal law requiring that at least 10 percent of the federal funds received by local and state grantees for public works projects be awarded to minority-owned businesses. The Court bases its ruling on the fact that the program was intended by Congress to remedy past discrimination, and allows grantees to be exempt if they can show that they made efforts to comply but were unsuccessful.