Description of an Indian-American political volunteer as a 'macaca', a genus of monkey, by a Republican Senator has cost the lawmaker an award following protests.
The remark by Republican Senator for Virginia Richard Allen created a controversy that forced him to decline a leadership award from an African-American minority fund.
The donors protested giving the award to Senator Allen and even threatened to withhold contributions if the lawmaker was presented the community leadership prize with the latest uproar coming from the Thurgood Marshall Scholarship Fund.
Justice Marshall is the first African-American to become a judge of the United States Supreme Court.
Allen had a month back singled out S R Sidarth, who was a volunteer with Democrat Jim Webb, and called him a "macaca".
He had also "welcomed" to America the 20-year-old Sidarth, who was born in Fairfax county in Virginia, according to media reports.
"Macaca" is a genus of monkey and is considered a racial slur.
Several Indian-American groups protested against the Senator's remarks even as some argued that the community was going to extraordinary lengths to persist with the controversy especially after Senator Allen had repeatedly apologised.
"The foundation told the Senator that they've been catching a lot of static from members and some of their donors... Before it spins into...controversy, we just decided to decline it," Allen's spokesman John Reid said.
The reports said Senator Allen looked at the reaction to the award in the framework of political adversaries in an election year.
