I don't see a problem with this, especially if part of the mission of the folks giving the grant is to create opportunities for under-represented people.

"If I want to focus on merit, fairness and equality, then you get called out as racist or sexist."

I'm still waiting for an example where someone can actually vet people based on merit, fairness and equality without any of their own unconscious biases being a factor. Humans are most comfortable with people that think, look, and act like them. No matter how hard they try, it skews their thinking at times.