Atlanta Airport Loses $37.5M in Federal Funds Over DEI Dispute

Atlanta’s Hartsfield-Jackson International Airport has forfeited at least $37.5 million in federal funding after city leaders refused to disavow programs related to diversity, equity, and inclusion (DEI). The decision comes in response to a mandate from the administration of former President Donald Trump that requires compliance with specific terms set by the Federal Aviation Administration (FAA).

On July 29, 2023, the airport declined to agree to a condition stating that it must not operate any DEI programs that conflict with federal anti-discrimination laws. This language aligns with an executive order signed by Trump in January 2023, which prohibits DEI initiatives for entities conducting business with or receiving federal funds. The FAA indicated that it was withholding a total of $57 million, but noted that $19 million could be available in the next federal budget year if the airport complies with the required terms.

The funding was earmarked for significant projects, including repaving taxiways and renovating public restrooms. Compliance with the FAA’s stipulations could jeopardize a longstanding program aimed at allocating 25% of airport business to minority-owned firms and 10% to women-owned firms. This initiative traces back to former Mayor Maynard Jackson, who played a crucial role in ensuring that a portion of a $400 million airport expansion project benefitted minorities and women. Under Jackson’s leadership, Atlanta secured its position as the world’s busiest airport, a legacy reflected in the airport’s naming.

The city’s minority business programs have significantly contributed to the growth of Black-owned businesses in Atlanta, enhancing the city’s reputation as a place of opportunity for African Americans. The Atlanta Journal-Constitution reported that city officials made unsuccessful attempts to negotiate with the FAA regarding the controversial language.

Several local governments, including those in New York, Chicago, and San Francisco, filed lawsuits in May 2023 to challenge Trump’s DEI ban, arguing it infringes upon congressional authority by imposing conditions on federally approved grants. A judge has temporarily blocked the administration’s ability to modify grant conditions for the suing local governments, but this does not extend to other municipalities.

Mayor Andre Dickens, who is up for reelection this year, has indicated that the city is considering adjustments to its DEI initiatives to secure federal funding for various operations, including those at the airport. Although Atlanta’s officials are elected on a nonpartisan basis, Dickens identifies as a Democrat.

“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,” stated Michael Smith, a spokesperson for Dickens.

In the interim, the airport plans to seek alternative financing to continue advancing projects without disrupting services for customers or airport providers. Smith did not specify the sources of potential new funding. Historically, the city has financed airport improvements through income generated by airport operations. For the fiscal year ending June 2024, Hartsfield-Jackson reported $989 million in revenue against $845 million in expenses, as detailed in a city financial report. At present, the airport is engaged in nearly $1 billion worth of ongoing construction projects. While federal funding is deemed important, it constitutes less than 10% of the airport’s planned construction budget for the next six years.