City Council may cut Fort Worth DEI programs amid threats to federal funding
Fort Worth will decide whether to cut DEI (diversity, equity and inclusion) programs to follow federal regulations and prevent loss of existing and future federal funds.
In a work session on Tuesday afternoon, assistant city manager Dana Burghdoff gave a presentation on how recent U.S. Supreme Court cases, executive orders by President Donald Trump and directives from federal agencies prohibit use of race, color, national origin, sex, religion, etc., as criteria for participation in programs and services.
The city has 139 federal grant awards of over $277,111,300 and 120 positions in the city funded through federal grants. Federal grants also provide neighborhood services that provide for over 18,000 families and 39,000 individuals annually and over $66,000,000 in transportation funds.
The city will have to certify they do not have such DEI programs, even if using non-federal funds for the programs.
The city would be at risk of losing current and future federal funds, of dealing with lawsuits, and treble damages, or damages to be multiplied if their actions are found to be intentional, according to Burghdoff.
Burghdoff added that a recommendation would be to adopt a resolution to suspend certain city council approved programs such as the Business Equity Ordinance, minority- and women-owned business enterprises requirements in economic development incentive policies, and duties of Diversity & Inclusion Department prescribed in City Code addressing racial, ethnic, and gender disparities, and any other similar programs.
The resolution will come to city council on June 24 and if approved, all programs, ordinances or similar programs will be suspended as of July 1.
Additionally, employees will not be fired or removed but the city will work with them to find other opportunities in the city that fit their skills.
To replace federal funding the city’s tax rate would increase 13 cents or about 20 percent and a $320 increase in resident’s tax bill for homeowners.
Theresa James, deputy city attorney, added this immediate change was directed from agencies in the federal government on what the city will have to do to continue receiving funding.
City Manager Jay Chapa, said the situation requires the city either move forwards without federal grants, or they make changes to programs that allow DEI, sign the grant agreements and say that those programs don’t exist.
“As the city manager, it would be unfair for me to ask employees to put themselves in that kind of position, both civilly and criminally liable, or sign a document that they know does not meet the requirements,” Chapa said.
Chapa agreed with a proposed solution in creating a small business development program that would be open to all small businesses, regardless of race, gender, or ethnicity, and include Fort Worth Chamber and the Black and Hispanic Chamber of Commerce to develop a program to look at issues involving all small businesses.
Councilman Chris Nettles said he did not support the resolution especially with removing the Business Equity ordinance and the minority- and women-owned business enterprises requirements on economic development. He said this decision would affect people in their communities and as a non-partisan city council they need to find a better solution.
“One of the things that Dr. (Jared) Williams talked about is, when do we take a stand for our city residents, and what we believe, historically is the right thing to do,” Nettles said.
The city recommended to have a resolution before the July 4th break because the city will be applying for aviation and DOT federal grants (which they will present on June 24).
Councilwoman Deborah Peoples said although she understood the financial implications, she could not support suspending these programs as it would send a bad sign to residents the city does not care for them and hoped the city would find other solutions.
“We are one of the most diverse cities in the United States of America, and I guess what gives me heartburn is that these programs were started as a remedy to discrimination, and they allowed members of the Hispanic, African American, Asian American communities and others to build generational wealth,” Peoples said.
This story was originally published June 17, 2025 at 6:14 PM.
