Atlanta forfeits $37.5 million in airport funds over DEI ban

Atlanta’s airport has forfeited at least $37.5 million because city leaders refused to disavow diversity, equity and inclusion programs as mandated by President Donald Trump’s administration. The Atlanta Journal-Constitution reports that Hartsfield-Jackson International Airport declined on July 29 to agree to terms set out by the Federal Aviation Administration.

The FAA told the airport that it was withholding $57 million in federal funds, with officials saying $19 million would be available in the next federal budget year if the language is adopted. The money would have gone to repave taxiways and renovate public restrooms, among other projects.

The language mirrors a January executive order signed by Trump banning DEI programs operated by entities receiving money from the federal government. City officials argued they could not certify the airport’s compliance with the directive without jeopardizing existing minority- and women-owned business programs.

The policy could force the city to give up a longstanding program that targets 25% of airport business for minority-owned firms and 10% for women-owned firms. Those programs have been credited with expanding opportunities for Black- and minority-owned businesses in Atlanta, part of a broader legacy linked to the city’s early airport expansion efforts.

Atlanta’s first Black mayor, Maynard Jackson, helped push a major airport expansion that included minority-business participation, a project that contributed to the airport’s rise as the world’s busiest by passenger traffic. The complex is now partially named for Jackson, along with former Mayor William Hartsfield. City officials say the programs have shaped Atlanta’s economic landscape and the city’s reputation as a place where Black residents could advance economically.

But the DEI-language requirement has provoked pushback from some officials who see it as a condition tied to federal funding. A number of other local governments, including New York, Chicago, San Francisco, Boston and Minneapolis, sued in May to stop Trump’s DEI ban. They argue the administration is usurping powers reserved to Congress by attempting to impose funding conditions on congressionally approved grants. A judge has temporarily blocked the administration from altering grant conditions for the local governments that are suing, but not for other governments.

Atlanta Mayor Andre Dickens, who is seeking reelection this year, has said he’s considering changes to the program so the city could keep receiving federal money for a wide range of functions including the airport. Dickens, who is Black, has described the city’s approach as aligned with long-held values while noting the need to comply with federal law. “The city is currently evaluating all options to ensure alignment with our long-held values, local policy, and federal law and we are confident that the airport will be well positioned to receive federal funds in the future,” said Michael Smith, a spokesperson for Dickens. In the meantime, the airport plans to pursue alternative funding to advance these projects without impacting customers or airport service providers, although Smith didn’t specify where that money would come from.

The city’s policy has been to finance airport improvements solely with airport-generated income. In the year ended June 2024, the airport reported $989 million in revenue and $845 million in expenses, with almost $1 billion in ongoing construction. Smith said federal funding is important but represents less than 10% of the airport’s planned construction program over the next six years.

The case underscores a broader clash between federal funding conditions tied to DEI policy and local control over major infrastructure investments, a friction that may reverberate through other municipalities as they navigate lawsuits and potential policy adjustments.