Local government in Fort Worth pauses diversity, equity, and inclusion (DEI) initiatives to align with Trump's directives and establishes a new small business program.

In a controversial move, the Fort Worth City Council has suspended its Diversity, Equity, and Inclusion (DEI) programs, effective from early August 2025. This decision was made to comply with new federal guidelines, following threats to withhold over $300 million in funding, primarily federal grants worth approximately $277 million [1][2][3][5].

The suspension vote, which passed 7-4, took place on August 5, 2025, after extensive public comment and debate. The council chose this path to maintain critical federal funding that supports low-income housing, utilities, public safety, and other services [1][3][5]. Mayor Mattie Parker and city leadership described the suspension as the "only legally viable path forward" to ensure the city remains financially stable and compliant with federal law [1][5].

In place of DEI programs, Fort Worth has created a Small Business Development Program. This new program focuses on business development without explicit DEI criteria but engages with groups like the Fort Worth Metropolitan Black Chamber of Commerce and Hispanic Chamber of Commerce to maintain some level of community support under the new federal rules [1][2][3][5].

The Trump administration's position, emphasized since its tenure and reflected in ongoing federal policy, targets the elimination of DEI efforts from government spending, conditioning significant federal funding on compliance [1][2][3][4]. Dallas has made similar moves, suspending DEI efforts to safeguard federal funds, reflecting a broader regional trend in compliance with these policies [4].

The decision has been met with controversy, with some council members and many residents opposing the suspension, fearing impacts on racial and social equity [1][3][5]. Speakers against the suspension argued it would damage the city's relationships with communities of color and set a dangerous precedent. On the other hand, speakers in favour of the suspension emphasized fiscal responsibility and the potential need for a property tax increase.

For projects over $100,000, the city will start with a 30% small business utilization goal, among other initiatives. The Small Business Administration sets standards for the maximum size that a business and its affiliates can be to qualify as a small business [6]. The city will work with the Fort Worth Hispanic Chamber of Commerce, the Fort Worth Metropolitan Black Chamber of Commerce, and the Fort Worth Chamber of Commerce to create and maintain the incentive program [6].

Michelle Green-Ford, president of the Black chamber, expressed confidence that the city can move forward with a plan that will develop all small businesses. Ericka Garza, president of the Hispanic chamber, will work with the city to match qualified small businesses with contracting opportunities [6]. After the suspension vote, a small business development program was created to mitigate the impact on minority- and women-owned businesses [6].

Karen Johnson, chair of the Fort Worth Human Relations Commission, opposed the DEI suspension and cited decades of Jim Crow laws and redlining as examples of blatant discrimination against all people of color. She also referred to the policies as "federal overreach on steroids" and a power play by the government [6].

This reflects a significant shift in Fort Worth’s approach to equity initiatives, driven primarily by the need to maintain federal grant funding under controversial federal policies originating in the Trump administration. It is important to note that the city has not increased its tax rate since 1995, and Fort Worth receives 139 multiyear federal grants for a cumulative $277 million [6].

[1] https://www.star-telegram.com/news/politics-government/article256620958.html [2] https://www.fortworthtexas.gov/government/city-council/agendas-and-minutes/2025/08/05 [3] https://www.bizjournals.com/dallas/news/2025/08/06/fort-worth-council-suspends-diversity-equity.html [4] https://www.dallasnews.com/news/politics/2025/08/06/fort-worth-suspending-diversity-equity-and-inclusion-programs-to-preserve-federal-funding/ [5] https://www.wfaa.com/news/local-news/fort-worth-city-council-suspends-diversity-equity-and-inclusion-programs-to-preserve-federal-funding/ [6] https://www.wfaa.com/news/local-news/fort-worth-city-council-suspends-diversity-equity-and-inclusion-programs-to-preserve-federal-funding/

The Fort Worth City Council, following threats to withhold over $300 million in federal funding, has suspended its Diversity, Equity, and Inclusion (DEI) programs, effective from early August 2025.
To comply with new federal guidelines, the council chose to maintain critical federal funding that supports various city services, including low-income housing and public safety.
In place of DEI programs, Fort Worth has established a Small Business Development Program, focusing on business development and engaging with local chambers of commerce.
The Trump administration's position targets the elimination of DEI efforts from government spending, and this policy has led to similar decisions in other cities, such as Dallas.
The decision to suspend DEI programs has been met with controversy, with concerns about its impact on racial and social equity and relationships with communities of color.
After the suspension vote, a small business development program was created to mitigate the impact on minority- and women-owned businesses, with the involvement of local chambers of commerce.

Local government in Fort Worth pauses diversity, equity, and inclusion (DEI) initiatives to align with Trump's directives and establishes a new small business program.