U.S. HUD Halts Asheville's Disaster Relief Funds Over DEI Criteria

Asheville -- The U.S. Department of Housing and Urban Development (HUD) has halted funding for Asheville’s Hurricane Helene disaster

recovery plan, citing the inclusion of Diversity,

Equity, and Inclusion (DEI) criteria. HUD Secretary Scott Turner confirmed that the city’s draft action plan will not be approved unless DEI elements are removed.

Background on the Funding

HUD allocated $225 million in Community Development Block Grant – Disaster Recovery (CDBG-DR) funding to Asheville to address the impact of Hurricane Helene. These funds were intended to support infrastructure repair, housing recovery, and business assistance programs. However, HUD has refused to approve the city’s current draft plan due to its prioritization of Minority and Women-Owned Businesses (MWBE) within the Small Business Support Program, which was set to receive $15 million. (hud.gov)

HUD’s Position and Federal Policy

In response to Asheville’s draft plan, Secretary Turner stated, “DEI is dead at HUD. We will not provide funding to any program or grantee that does not comply with President Trump’s executive orders.” This aligns with the Trump administration’s recent executive actions aimed at eliminating DEI-focused government programs. According to HUD, the use of DEI criteria in allocating federal disaster relief funds conflicts with these new policies. (hud.gov)

Impact on Asheville’s Recovery

Asheville is still recovering from the devastation caused by Hurricane Helene, which severely impacted local infrastructure, displaced residents, and left many small businesses struggling to rebuild. The city had been counting on the $225 million in federal funding to accelerate recovery efforts and address critical needs.

However, Asheville officials now face the task of revising their disaster recovery plan to comply with HUD’s requirements. Until the plan is updated and approved, the city will not receive any of the allocated $225 million in federal funding. City representatives have stated that they are working closely with HUD to ensure compliance while maintaining their commitment to equitable disaster relief efforts. (hud.gov)

The final plan is expected to be resubmitted to HUD by April 21, 2025. If approved, project implementation could begin by the summer or fall of 2025. However, this delay in HUD’s approval has effectively postponed the release of the $225 million, which could put Asheville behind in its recovery plans. Originally, the city had anticipated that funds would be approved by June 2025, allowing projects to begin shortly thereafter. Any additional revisions required by HUD could extend the review process, delaying the city's infrastructure repairs, housing recovery, and small business support. If negotiations with HUD take longer than expected, Asheville may be forced to adjust its recovery timeline, potentially pushing key projects into late 2025 or beyond.

Key Takeaways

HUD has paused Asheville’s access to $225 million in federal disaster relief funding due to DEI provisions in its draft plan.

President Trump’s executive orders have eliminated DEI-focused programs at HUD, and funding will be withheld until Asheville removes these elements.

The city must revise its plan to comply with federal guidelines before receiving any funding.

Asheville is in ongoing negotiations with HUD to ensure compliance while finalizing a revised plan.

The delay in HUD’s approval may push Asheville’s recovery projects further into late 2025 or beyond.

Asheville is still recovering from the impact of Hurricane Helene, and this funding delay could slow down critical rebuilding efforts.

Sources:

U.S. Department of Housing and Urban Development

Blue Ridge Public Radio

Citizen-Times

As Asheville moves forward in revising its disaster recovery plan, the situation highlights the broader shift in federal policy regarding DEI programs and their role in government-funded initiatives.