U.S. Sen. Bernie Moreno is turning up the heat on Cincinnati City Hall, warning that the city’s newly revamped contracting system could put millions in federal dollars on the chopping block if it bakes diversity, equity and inclusion preferences into how contracts are awarded. In a July 2 letter, Moreno told Mayor Aftab Pureval to spell out how much federal money Cincinnati has taken in recent years and hinted he may ask federal agencies to scrutinize that funding, escalating an already tense fight over who gets a piece of the city’s contracting pie.
On June 10, City Council signed off on an ordinance that creates a new Department of Economic Inclusion and Procurement by folding the existing Office of Procurement into the inclusion-focused department, according to City Council records. Both the official city bulletin and the ordinance language say the shakeup is meant to streamline how the city buys goods and services, cut down on duplicate administrative work and keep Cincinnati’s long-standing inclusion goals intact, according to the City Bulletin.
Moreno’s letter, which his office shared with federal officials, blasts the restructuring as potentially illegal and wasteful and presses Pureval to explain, in detail, how the new department will evaluate bids and award contracts, according to Fox News. He gave the city five business days to respond and copied the U.S. Department of Justice on the correspondence, signaling that this is more than a routine political dustup.
Why the city combined procurement and inclusion
The Department of Economic Inclusion is the product of a multi-year push to expand opportunities for minority- and women-owned firms in public contracts. The city’s 2023 disparity study found statistically significant underutilization of those businesses and urged targeted corrective measures, according to the City of Cincinnati Disparity Study. Backers of the new ordinance say merging procurement with inclusion gives Cincinnati a single shop to set participation goals, track compliance and move bid reviews along more quickly.
Local officials push back
Pureval’s office has not exactly been whispering in response. A spokesperson called Moreno’s threat to put federal funding on the line “extremely disappointing” and pointed out that the city already maintains public-safety and procurement plans, according to WCPO. City communications director Mollie Lair added that the reorganization does not come with new costs and argued that combining the two offices should actually speed up and simplify contracting, according to the Cincinnati Enquirer.
What comes next
Moreno’s office also forwarded the letter to the Justice Department and has said it may ask federal agencies to review Cincinnati’s grants and compliance practices, according to Fox News. The executive order that put DEI programs under a federal microscope, Executive Order 14151, was published in the Federal Register and directs agencies to examine DEI-linked initiatives and grants.
Past attempts to abruptly yank federal grants have not always gone smoothly for Washington. Courts have stepped in with blocks and rulings, making clear that any aggressive move against Cincinnati’s funding would likely face legal scrutiny. A recent case described by the San Francisco Chronicle illustrates how judges have reacted when administrations tried to cancel grants on short notice.
.jpg){kind=link}