Fort Worth council delays vote on pausing DEI office as staff warns of potential federal grant losses

The Fort Worth City Council voted on Tuesday to continue consideration of a resolution that would suspend the city's Diversity, Equity and Inclusion office and related programs, setting the matter for a vote on Aug. 5 or at a special meeting in July. The decision follows hours of public testimony and a staff briefing on legal and fiscal risks tied to new federal guidance and recent court decisions.

City staff told the council the issue began after federal agencies and a recent Supreme Court precedent changed how race-conscious programs are evaluated. Dana Bergdorf, assistant city manager, told the council: "The city currently has active federal grants totaling $277,000,000 across 10 different departments. Of that $40,000,000 is in annual grama awards that fund about 120 city employees, including our civil rights staff, emergency management staff, and our neighborhood services staff and programs." The staff presentation listed near-term deadlines — including an Aug. 15 HUD annual action plan for about $13 million in HUD funds — that factor into the timetable.

Why it matters: The resolution (agenda item 25-5257) would pause the city's DEI offices and suspend certain equity-oriented requirements tied to city procurement and economic incentives, steps staff warned could imperil federal grant awards or the city's ability to sign grant assurances. City attorneys told council members that signing federal grant agreements while the prohibited programs remain in place could expose individual signatories and the city to False Claims Act liability. City Manager Jay Chapa and City Attorney Leanne Guzman both briefed the dais and answered legal and operational questions about alternate approaches and timelines.

What council heard: More than three dozen residents, nonprofit and business representatives urged the council either to reject the resolution or to delay action so staff can craft a replacement program. Speakers included business leaders and leaders of the Fort Worth Metropolitan Black Chamber and the Fort Worth Hispanic Chamber of Commerce, who stressed the economic impact of the city's minority- and women-owned business enterprise (MWBE) efforts. Mindy Tackett said the council should not "cave to pressure from partisan mandates or political threats," while Erica Garza, president and CEO of the Fort Worth Hispanic Chamber, warned that pausing programs without clear replacements would cause confusion among small businesses that depend on city contracts and training.

City staff's alternatives and timeline: Staff described a proposed local small-business preference and capacity-building program that would replace race- or gender-based criteria with procurement tools and targeted support (bonding assistance, unbundling large contracts, technical assistance). Jay Chapa said the effort requires stakeholder work with both chambers and small-business groups and estimated a fully fleshed program could be prepared by Oct. 1; staff said a more limited, shareable framework could be produced in roughly two months and a shorter briefing for council by Aug. 5. Bergdorf said some grant awards already have start dates (a TCEQ/EPA monitoring grant that started June 1 was cited) and that the city's usual practice has been to sign grant agreements within about 30 days of award. The city has not yet signed the new federal grant assurances that would trigger the prohibitions, she said.

Council comments: Council members said they were split between protecting federal funding and developing new, legally defensible local programs. Councilwoman Elizabeth Beck urged urgency in designing a replacement, saying: "If West of 35 is doing fabulous and East of 35 isn't, our city is failing." Councilman Carlos Flores and others emphasized the practical fiscal risks; Councilman Chris Nettles urged the council to resist what he described as "bullying" from the federal administration and called for creative local funding options. Mayor Mattie Parker and multiple council members stressed the need for more stakeholder meetings with the two chambers and small-business groups.

Outcome and next steps: Instead of voting to suspend DEI functions, the council approved a motion to continue the resolution to Aug. 5 or to a special July meeting if a majority can be convened. Staff will return with a clearer, stakeholder-vetted plan for a small-business capacity program, and will also provide an updated assessment of which grant agreements must be signed and the risk exposure for particular awards and deadlines.

The council's continuation leaves current programs in place until the Aug. 5 vote but increases pressure on staff to produce specific replacement options that comply with federal guidance while minimizing disruption to grant-funded services and to workers whose positions depend on those grants.