Is this racism?

This is worse than a participation award. This is a “You were born” award

Sad thing is, there are some black people who'd let such an award inflate their egos, and use it as a point of superiority and pride.
In short, I think those teens have the right expression for that nonsense.

Yes...
This is absolutely racism...

The look in their eyes just says
"We're going to have to deal with this stupid white people shit our whole lives, ain't we?"