Last Updated on August 5, 2025 by Bertrand Clarke
City Council to Weigh Options on DEI Programs Amid $277M Funding Threat
In Fort Worth, Texas, a pivotal decision looms as city leaders prepare to vote on a resolution that could reshape the city’s approach to diversity, equity, and inclusion (DEI) initiatives. The Fort Worth City Council is set to determine whether to suspend several DEI-related small business grant programs to secure $277.1 million in federal funding, a move that has sparked intense debate among residents, business leaders, and activists. This decision, scheduled for August 5, 2025, underscores a broader national conversation about the role of DEI in local governance and the economic implications of aligning with federal mandates.
The Stakes: Federal Funding vs. Community Values
Fort Worth, one of the fastest-growing cities in the United States, relies heavily on federal grants to support critical services such as law enforcement, environmental initiatives, housing, and utility assistance. According to a June 17, 2025, city staff presentation, failing to comply with a recent executive order signed by President Donald Trump could jeopardize $277.1 million in multiyear federal awards. The executive order mandates the suspension of DEI programs in local governments, citing concerns about their alignment with federal funding requirements.
The resolution under consideration would suspend Fort Worth’s DEI initiatives, particularly those tied to small business grants aimed at supporting minority-owned enterprises. City officials argue that compliance is essential to maintain the flow of federal dollars, which fund programs benefiting a wide range of Fort Worth residents. However, opponents of the resolution, including local advocacy groups and community leaders, contend that dismantling these programs risks undermining decades of progress toward equity and inclusion in a city known for its diverse population.
Fort Worth’s population, as of the 2025 Census estimates, stands at approximately 961,000, with a demographic breakdown of 39% White, 35% Hispanic, 19% Black, and 7% other racial and ethnic groups. The city’s DEI programs have historically supported minority-owned businesses, which make up roughly 25% of small businesses in Tarrant County, according to the Fort Worth Metropolitan Black Chamber of Commerce. These initiatives have provided grants, training, and networking opportunities to help level the playing field for entrepreneurs who face systemic barriers.
A Community Divided
The debate over the resolution has exposed deep divisions within Fort Worth. At a recent city council meeting, 15 community members and business leaders spoke out against suspending the DEI programs. Representatives from the Fort Worth Metropolitan Black Chamber of Commerce, the Fort Worth Hispanic Chamber of Commerce, and the NAACP’s Fort Worth/Tarrant County branch voiced concerns about the long-term impact on minority communities. “When you guys leave this dais, what will you be known for?” asked Councilman Chris Nettles, a vocal opponent of the resolution, during a June 2025 meeting. “Will you be known for eating the crumbs off of Trump’s table, or will you be known for standing up to a bully?”
On the other side, proponents of the suspension argue that the city has no choice but to comply to avoid catastrophic financial losses. The $277.1 million in federal funding supports critical infrastructure projects, including $85 million for housing and utility assistance, $60 million for environmental services, and $45 million for law enforcement training and equipment. Losing these funds could lead to budget cuts, layoffs, and reduced services, disproportionately affecting low-income residents who rely on these programs.
City staff have proposed a compromise: a new small business program designed to replace the DEI initiatives while still supporting minority entrepreneurs. This “best value procurement” process, set to begin on September 1, 2025, would prioritize small businesses in city contracts and foster collaboration with local chambers of commerce. According to Assistant City Manager Fernando Chapa, the program aims to “soften the blow” of suspending DEI initiatives by ensuring that minority-owned businesses continue to receive support through alternative channels. The Fort Worth Chamber of Commerce, along with the Black and Hispanic Chambers, has signed a memorandum of understanding to share resources and amplify opportunities for local businesses.
A Broader National Context
Fort Worth’s dilemma is not unique. Across the country, cities and counties are grappling with similar challenges as federal policies shift under the Trump administration. The executive order, signed in early 2025, builds on a 2020 directive that restricted federal funding for programs deemed to promote “divisive concepts.” Critics argue that the order is part of a broader effort to roll back DEI initiatives nationwide, while supporters claim it ensures neutrality in government operations.
In Tarrant County, the political landscape has shifted further to the right in recent years. The 2024 election saw former state Representative Matt Krause win a seat on the Tarrant County Commissioners Court, signaling a conservative push that could influence local policy decisions. Posts on X reflect the polarized sentiment, with some users praising the potential suspension of DEI programs as a rejection of “radical Marxism,” while others decry it as a step backward for equity and inclusion. “The quiet dismantling of diversity, equity, and inclusion under federal pressure isn’t just disappointing — it’s familiar,” stated a July 30, 2025, post by Tarrant4Change, a progressive activist group.
Voices from the Community
Local business owners have been vocal about the potential impact of the resolution. Maria Gonzalez, owner of a Hispanic-owned catering company in Fort Worth, credits DEI grants with helping her expand her business during the economic recovery following the COVID-19 pandemic. “Without those funds, I wouldn’t have been able to hire more staff or upgrade my equipment,” she said in an interview with the Fort Worth Report. “If the city suspends these programs, it’s not just about me—it’s about the next generation of entrepreneurs who won’t get the same chance.”
Conversely, some residents argue that the city must prioritize fiscal responsibility. “We can’t afford to lose $277 million just to make a statement,” said John Reynolds, a Fort Worth retiree, during a public comment session. “The city can find other ways to support businesses without risking our tax dollars.”
Looking Ahead: The August 5 Vote
The Fort Worth City Council’s vote on August 5, 2025, will be a defining moment for the city. Mayor Mattie Parker, who supported delaying the vote in June to explore alternatives, has emphasized the need for a balanced approach. “We want to ensure that every business in Fort Worth has a fair shot, but we also have to protect the funding that keeps our city running,” she said in a statement to KERA News.
Councilman Nettles, who has emerged as a leading voice against the resolution, has called for a special meeting to discuss the issue further, though he has not confirmed whether he will push for it before August. Meanwhile, city staff are working to finalize details of the new small business program, which they hope will address concerns from both sides.
A City at a Crossroads
As Fort Worth prepares for this critical vote, the decision will have far-reaching implications. Suspending DEI programs could secure vital federal funding but risks alienating communities that have benefited from these initiatives. Alternatively, rejecting the resolution could preserve Fort Worth’s commitment to equity but at a significant financial cost. The outcome will likely shape the city’s identity and its approach to governance for years to come.
For residents, the debate is about more than money—it’s about values. “This isn’t just about grants or contracts,” said Angela Peoples, a former chair of the Tarrant County Democratic Party. “It’s about whether Fort Worth will stand up for its people or bow to external pressure.” As the city council meeting approaches, all eyes are on Fort Worth to see how it navigates this complex and deeply personal issue.
