Orlando pauses MWBE program after new federal grant language; council members pledge to redesign support for small businesses

Mayor Dyer announced at the Orlando City Council meeting June 9 that the city has temporarily paused its minority- and women-owned business enterprise program after “new language” was added to federal grant agreements the city must sign.

The change, Dyer said, required city certification that the city “does not operate any programs that favor anyone based on race and gender,” and the city attorney recommended suspending the program while staff and outside counsel review compliance. "Because this new language was added, our city attorney recommended that we pause our WMBE," Dyer said.

The announcement came during the mayor’s regular update. Dyer said the city and the airport rely on federal grants for multiple services and that federal funding has been a significant part of recent budgets. He said the city has engaged a nationally recognized expert and that staff will bring recommended modifications back to commissioners for review and direction.

Commissioner Tony Ortiz said he supports research and additional work by staff, calling the pause unjust to businesses the program was meant to help. "We should not stand on the sidelines...we need to continue fighting for what is right for our community," Commissioner Tony Ortiz said.

Commissioner Patty Sheehan said she was “distressed” by the suspension and described the MWBE program as a tool that helps people without opportunities gain access to contracts and business growth. "It's just it's really unfortunate that people don't see that these programs...are there to help those who don't have opportunities," Commissioner Patty Sheehan said.

Interim Commissioner Rose said she was “deeply disappointed” and called the program a “critical tool” that supports economic equity and pathways to generational wealth; she urged swift, community-involved work to find alternatives that meet federal requirements. "Its suspension sends the wrong message," Interim Commissioner Rose said.

Commissioner Burns said pausing the program was prudent while the federal language is reviewed but warned the pause should not become abandonment of support for diverse small businesses. "We cannot use this as an opportunity to abandon our support for our diverse small businesses," Commissioner Burns said, and offered to work with staff on the redesign.

Discussion among council members generally supported quick staff action, engagement with commissioners, and consultant work to propose revised policies that comply with federal grant conditions. The mayor said staff will meet individually with commissioners to gather recommendations and that the city remains committed to supporting local small businesses while ensuring compliance with federal grant terms.

The council did not vote on a policy change at the June 9 meeting; Mayor Dyer said a set of recommendations will be returned to the council after staff and the consultant complete their review and propose options.

Why this matters: The MWBE program has been used by the city for more than two decades to direct business opportunities toward woman- and minority-owned firms. Pausing the program affects procurement practices tied to federal grants and could affect local small-business participation in city contracts while staff and outside experts draft compliant alternatives.