Apr 17, 2026
What started as a fight over diversity programs has turned into a high-dollar showdown, with cities across the U.S. having to decide if they should push back against President Donald Trump's DEI crackdown, or protect the federal funding they rely on.
And in Fort Worth, Texas, that choice has come with a serious price tag. Fort Worth City Council member Carlos Flores told attendees at a meeting that, "We can't account for $277.1 million," which is how much the city stands to lose in funding, per The Washington Post (1).
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Faced with the potential of such a massive hole in the budget, council members voted to suspend DEI programs, illustrating how political battles in Washington are affecting decisions at City Hall.
Cities caught between politics and funding
What happened in Fort Worth is part of a wider showdown happening in cities nationwide, where access to billions in federal funding for housing, transit and local services is increasingly tied to compliance with federal conditions.
In Fort Worth, where the council typically deals with issues such as development permits and road repairs, residents packed council chambers, urging leaders to either stand up to Trump or to protect the city's financial future.
Activists including EJ Carrion, the host of a local talk show, helped organize almost 10,000 form letters to council members to try to sway the decision in favor of keeping DEI programs intact. "Oppressive regimes rise not in one bold stroke, but slowly, through silence," he told the City Council at a June meeting, per the Washington Post.
But hanging in the balance was millions of dollars, money the city relies on.
Federal funding like this helps pay for housing programs, infrastructure upgrades and essential services. The National League of Cities (2) has warned that as federal aid dries up, cities are entering a period of tighter budgets and slower revenue growth, which could strain local finances.
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The fallout hits fast
According to The Washington Post, Forth Worth could lose about $40 million in just one year if it refuses to comply, and as much as $277 million over time.
Managing Trump’s mandates is complicated for both cities and states. Cities including San Francisco and New York have shown some fight when it comes to DEI demands from the federal government (3). Others are choosing a more cautious path, such as in Portland, Oregon, where leaders acknowledged the impact that losing federal grants would have and changed the city's DEI policy (4) to follow Trump's DEI mandate. But even New York has cut references to DEI from its racial equity plan (5), at the same time as the state’s education department is refusing to give in to Trump’s demands (6).
When funding disappears, the fallout hits fast. Research from the Urban Institute (7) shows cuts to federal support can put affordable housing programs at risk and hurt the community services that vulnerable residents rely on.
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That's what made Fort Worth's decision so significant. In the end, the council voted 7–4 to suspend DEI programs.
Scrapping DEI meant putting long-running programs on ice, including those aimed at helping minority-owned businesses compete for city contracts. In their place, officials pitched a broader small business initiative, framing it as a compromise.
How residents can stay informed
Decisions made on the city level can have a big impact on everyday life for residents. Here are a few key things to keep an eye on:
Follow the money in city budgets: Changes often show up in budget meetings long before they become visible service cuts. These hearings can reveal early signals about hiring freezes, delayed infrastructure projects or reduced community programming.
Know what's federally funded: An analysis by Local Housing Solutions (8) explains that local housing programs rely heavily on federal funding streams that can change or disappear, so even small changes can have big impacts.
Pay attention to local elections: Policy experts such as the National Civic League (9) say turnout in municipal races is usually low, which means organized groups can have an impact on outcomes.
Faced with the possibility of losing millions of dollars, even Fort Worth's officials who supported diversity programs ultimately decided the financial risk was too high. It's a trade-off cities across the country have been forced to confront.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
The Washington Post (1); National League of Cities (2); O’Melveny (3); OPB (4); City and State (5); Truthout (6); Urban Institute (7; Local Housing Solutions (8); National Civic League (9)
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Jessica is a freelance writer with a professional background in economic development and small business consulting. She has a Bachelor of Arts in Communications and Sociology and is completing her Publishing Certificate.
