Fort Worth, Texas, weighs DEI programs vs. $277M in federal money. What will it do?

Kamal Morgan, Fort Worth Star-Telegram on Jun 24, 2025

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FORT WORTH, Texas — The Fort Worth City Council voted Tuesday, June 24, to delay a vote on whether to suspend city programs that promote diversity, equity and inclusion and instead instructed city staff to create a plan to sustain such programs.

After a two-hour discussion, the council voted 9-2 to find a way to sustain DEI programs such as the city’s Business Equity Ordinance, which promotes contracts between the city and minority- and women-owned business enterprises. Council members Macy Hill and Charlie Lauersdorf voted against the delay. A decision is expected later this summer.

The debate 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 faces a $277 million loss in federal grants affecting 120 city employees and neighborhood services that affect over 18,000 families and 39,000 individuals annually if it does not adhere to the rules. It also risks lawsuits and multiplied damages if its actions are found to be intentional, according to Burghdoff.

To replace federal funding, the city’s tax rate would increase 13 cents, or about 20%, resulting in a $320 increase on the average homeowner’s tax bill.

City Manager Jay Chapa said the city could work on a small business program as a possible replacement with partners such as the Fort Worth Chamber of Commerce and the Black and Hispanic chambers of commerce that could address challenges that small businesses face, such as access to capital, bonding assistance and insurance.

The city is expected to present a plan for consideration by the council in late July or Aug. 5.

Chapa stressed the urgency of voting for the resolution to end the DEI programs, noting that delays could jeopardize grants and complicate budget planning.

“That’s the difficult piece from a delay to August 5, that there is no certainty on the funding available to move forward,” Chapa said.

Concern for small businesses

Michelle Green-Ford, president and CEO of the Fort Worth Metropolitan Black Chamber of Commerce, told the council it was unfortunate it may abolish the Diversity and Inclusion Department, which has helped people who have been systematically discriminated against.

“We beseech you to not forget about the small businesses that are still in need of assistance from their local government,” Green-Ford said. “We’re still expecting to be treated fairly in these uncertain and hostile times.”

Councilman Lauersdorf said he doesn’t think the city needs an ordinance to do the right thing and ensured that the city would create a program to help every small business program. He noted that the council members whose districts would be most affected by the potential losses in federal funding were the ones supporting a delay that could jeopardize the funding.

He suggested that Councilman Chris Nettles and others send around a “collection plate” for the $270 million needed to help pay for programs that could be gutted by a loss of federal funding.

“This, to me, comes down to fiscal responsibility,” Lauersdorf said. “Unless somebody else is willing to cut a check right now to the city of Fort Worth for $240 million, or whatever it is, then I don’t really see any other way around it.”

Nettles made the motion to delay the vote on ending DEI programs to allow time to gather more information.

“I am challenging our management to present us a more robust plan for the next three years of how we subsidize these programs that we will lose because at some point, the 11th largest city in United States of America has to become self-sufficient and not waiting for Trump to give us what he’s going to give us and then putting a pacifier in our mouth when he doesn’t want to feed us,” Nettles said.

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