Fort Worth's City Council has hit the brakes on the city's diversity, equity and inclusion programs after staff warned that federal pressure could put roughly $277.1 million in grant funding at risk. The 7-4 vote shelves long-running efforts that helped minority-owned firms chase city contracts and shutters the standalone Diversity and Inclusion department. Activists have responded loudly, arguing the change will hollow out support for residents who have historically been sidelined.
How The Council Voted And What Got Cut
On Aug. 5, 2025, the council voted 7-4 to suspend DEI and related business-equity incentives, effectively removing dedicated city staff who had overseen minority- and women-owned business certification, according to The Washington Post. Supporters cast the move as a necessary financial safeguard, while opponents warned it would weaken protections for businesses already fighting uphill.
City Hall Says It Was About Saving Federal Grants
City staff told the council the suspension was necessary to preserve about $277.1 million in multiyear federal awards, or roughly $40 million in a single year, that fund services from public safety to housing, according to Fort Worth Report. Officials said the compromise would keep critical grants flowing while city leaders rewrite how they support small businesses. In other words, keep the money coming now and argue about the details later.
What City Hall Put In Place Instead
Council members approved a Small Business Development Program designed to remove explicit racial and gender preferences in procurement and instead lean on best value rules and inclusion targets. The program was slated to take effect Sept. 1, city officials told reporters, according to CBS Texas. City leaders said they consulted the Fort Worth Metropolitan Black Chamber of Commerce and other local groups while drafting the replacement, pitching it as a broader on-ramp for small firms.
Activists Packed City Hall But Could Not Stop The Vote
Organizers led by EJ Carrion said they gathered nearly 10,000 form letters and packed council chambers in a last-ditch effort to preserve DEI, according to The Washington Post. Oppressive regimes rise not in one bold stroke, but slowly, through silence, Carrion told the council, as protesters warned the new small-business plan might not come close to replacing years of targeted programming. The message from the crowd was blunt: do not call this an even swap.
Bigger Stakes: Housing And Services On The Line
Policy analysts say cuts to federal support can quickly erode affordable housing and local safety-net programs, a pattern the Urban Institute has documented in other cities. The broader national backdrop and Fort Worth's local reaction are pulled together in a Moneywise look at the council's decision.
Legal Backdrop Still In Flux
The legal fight over the administration's anti-DEI directives has been moving through the courts: a federal judge largely blocked the executive orders earlier, and the administration in January moved to drop its appeal of that ruling, leaving parts of the dispute unresolved, according to AP News. Given that uncertainty, some cities have chosen to litigate, while others, like Fort Worth, opted to comply in order to protect near-term funding.
For Fort Worth, the real-world test comes next: whether the new small-business program can keep doors open to city contracts and services without the explicit DEI language that used to guide policy. Residents, chambers and activists say they plan to comb through procurement reports and budget hearings as the replacement program rolls out, watching to see who actually lands the work.
