Restaurants rushed to file applications with a federal aid fund prioritizing women and minority-owned businesses. A new lawsuit alleges discrimination.

A $28.6 billion federal restaurant aid fund has in its first week received more than 266,000 applications from struggling restaurants, many of which come from the women- and minority-owned businesses the fund is prioritizing. But a new federal lawsuit filed Wednesday by a conservative law firm claims that's discrimination.

The Wisconsin Institute for Law and Liberty filed suit against Small Business Administration head Isabella Guzman, accusing the agency of race and gender discrimination in the administration of the Restaurant Revitalization Fund, the program passed as part of the American Rescue Plan to provide relief to hard-hit restaurants and bars. The program aimed at helping restaurants hit hard by the pandemic has seen applications seeking twice as much aid as the program has funds for, signaling just how much strain COVID-19 has put on the industry.