The Fullilove v. Klutznick case in 1979 revolved around the constitutionality of a federal law that required at least 10% of funds granted for local public works to be used to procure services or supplies from businesses owned by minority group members. The plaintiffs, including several construction contractors and trade associations, argued that this was discriminatory and violated their rights under the Due Process clause of the Fifth Amendment. However, the Supreme Court ruled in favor of Klutznick (Secretary of Commerce), upholding the law with a majority vote. The court stated that Congress had sufficient authority under Article I Section 8 Clause 1 (the Spending Power) and Section 5 of Fourteenth Amendment to enact such legislation aimed at remedying past societal discrimination against racial minorities.

In the Fullilove v. Klutznick case, Justice Stewart's dissenting opinion argued that the Public Works Employment Act of 1977, which required a percentage of federal grants to be set aside for minority businesses, was unconstitutional. He believed it violated equal protection principles by establishing racial classifications and preferences in violation of the Fifth Amendment's Due Process Clause. He stated that such racial quotas were discriminatory and could not be justified as remedial measures because they did not directly address past discrimination or its effects on present-day minorities. Instead, he suggested these quotas perpetuated stereotypes about minorities' inability to compete in business without government assistance. Furthermore, he emphasized that Congress had failed to identify specific instances of discrimination justifying this race-based remedy.