Fort Worth City Council ends DEI programs to protect $277M in federal grants
The Fort Worth City Council voted Tuesday night to end diversity, equity and inclusion programs to follow federal regulations and prevent the loss of existing and future federal funds.
The special called meeting to address this issue lasted five hours and included extensive public comments. The vote to end the DEI programs was 7-4, with council members Deborah Peoples, Mia Hall, Chris Nettles, and Elizabeth Beck voting against the measure.
The original resolution, which included the suspension of the DEI programs and implemention of a new small business development program, was split into two resolutions. The small business development program was passed with a 10-1 vote with Peoples voting no.
Nettles had asked for an amended resolution that would allow for the suspension of DEI programs but include the possibility of the issue coming back before the council for reconsideration if anything were to change regarding such programs, such as a president’s decision or Supreme Court ruling. That motion failed..
The city faced the potential loss of $277 million in federal grant funding if it did not end the DEI programs.
Councilman Charles Lauersdorf, who represents District 4, said he supported ending the programs because he wanted to keep taxes as low as possible while not sacrificing public safety, which was in line with his constituents’s wishes.
“I have a lot of reasons to support this,” he said. “Two-seventy-seven million reasons, or 100,000 speaking directly to the residents in District Four — a lot of reasons.”
Martinez said she voted for suspending the programs because District 11, which she represents, faced the loss of critical infrastructure funding for projects that are already underway. She said grant funding losses would result in increased homelessness and the loss of financial support for vulnerable or marginalized populations. She was supportive of the new small business development program, which will provide more opportunities for businesses in Fort Worth.
Beck opposed ending the DEI programs, which she said help level the playing field and rectify years of oppression endured by marginalized groups.
“We can do hard things, and we can do them together, and we do them tonight by saying we will not bow to bullies,” Beck said.
Tuesday’s vote followed a June 17 presentation to the council by assistant city manager Dana Burghdoff showing how recent U.S. Supreme Court cases, executive orders by President Donald Trump and directives from federal agencies prohibit the use of race, color, national origin, sex, religion, etc., as criteria for participation in programs and services. The city will have to certify it does not have such DEI programs, even if using non-federal funds for the programs.
The city faced a loss of existing and future federal grants if it did not end the DEI programs. The city has $277 million in active federal grants, $40.6 million of which are annual grants. The loss of the grant funding would have affected 120 city employees and neighborhood services that affect over 18,000 families and 39,000 individuals annually. The city would als have been exposed to the risk of lawsuits and multiplied damages if its actions are found to be intentional, according to Burghdoff.
To replace all federal funding, the city’s tax rate would increase 13 cents, or about 20 percent, resulting in a $320 increase on the average homeowner’s tax bill, according to the June 17 presentation.
Nettles, who voted against the resolution to suspend DEI programs, said he would rather raise taxes slightly, such as 2 cents, and have the city council be creative in how it spends existing funds to keep the DEI programs.
“This order has more stipulations in it than just diversity, equity and inclusion,” Nettles said. “It's going to really hurt and harm cities of color, Black and brown cities.”
The city delayed a vote on ending the DEI programs in June, instructing city staff to develop a more robust program to support small businesses before reconsidering the measure.
New small business program for Fort Worth
Moving forward, the city will partner with the Fort Worth Chamber of Commerce and the Black and Hispanic chambers of commerce to address challenges that small businesses face, such as access to capital, bonding assistance and insurance.
Under the new small business development program, the city will work with regional certification agencies to identify eligible minority and women-owned businesses to be officially certified as small businesses, using Small Business Administration definitions. The city will eventually work to develop its own definition of a small business. Such businesses will be eligible for a 5 percent bid preference, and the city will have a goal of issuing 30 percent of it contracts over $100,000 to small businesses.
The city’s new small business procurement ordinance will be effective with bids and contracts on or after Sept. 1. The city is expected to vote on contracts with the three chambers of commerce to support the program on Aug. 26.
Critics concerned about economic disparities
Critics of the removal of ordinances and programs that promote DEI say it will limit opportunities for minority and women-owned businesses and widen economic disparities.
Sharon Douglas, owner and president of Potere Construction LLC, says the city’s small business plan has to be inclusive and be fair for the survival of small business owners.
“A prime contractor now has no guidance to be inclusive,” Douglas told the Star Telegram before Tuesday’s city council meeting. “So what does that do for me? That makes my job more difficult, that makes it very difficult for me to find additional opportunities in the city, and if it comes to that point, then my question to myself will be, what am I doing here? What is my motivation for staying here?”
Demetria Bivens, executive director of the National Association Of Minority Contractors Dallas-Fort Worth Chapter Inc., says the suspension of DEI ordinances and programs sets a bad precedent that equity and inclusion are no longer priorities, risking undoing decades of progress.
Without equitable access to contracts for small businesses it creates a ripple effect in which neighborhoods miss out on jobs, services, and local reinvestment, Bivens said in an email statement to the Star Telegram before Tuesday’s meeting.
“Without clear details, it’s hard to trust that a general small business program will address the systemic barriers that the Business Equity Ordinance was designed to overcome,” Bivens said. “A race-neutral approach often ignores the real disparities that still exist.”
This story was originally published August 6, 2025 at 10:51 AM.
CORRECTION: This story has been updated to clarify Councilman Chris Nettles’ comments on raising taxes.
