Asheville Revises $225M Hurricane Helene Recovery Plan After HUD Rejects DEI Elements

Asheville -- Asheville has revised its $225 million Hurricane Helene recovery action plan after the U.S. Department of Housing and Urban

Development (HUD) rejected elements

prioritizing Minority- and Women-Owned Businesses (MWBEs). The city’s initial plan included a $15 million Small Business Support Program that aimed to direct resources specifically toward MWBEs, a provision that HUD deemed noncompliant with federal funding regulations.

HUD’s Rejection of DEI Elements

According to HUD Secretary Scott Turner, “DEI is dead at HUD,” emphasizing that federal disaster relief funds cannot be distributed based on Diversity, Equity, and Inclusion (DEI) criteria. The department’s ruling required Asheville to remove all references to MWBE prioritization before approving the plan.

A city spokesperson, Kim Miller, confirmed Asheville’s compliance efforts, stating, “We are in daily communications with our HUD representatives and have taken proactive steps to resolve any issues and meet federal standards.”

Key Changes to Asheville’s Recovery Plan

To align with HUD’s requirements, Asheville eliminated any language prioritizing MWBEs. The $15 million originally planned for targeted business support is now accessible to all businesses on an equal basis.

The revised funding allocations are as follows:

$130 million for infrastructure improvements.

$30 million for commercial district revitalization.

$26 million for multi-family affordable housing.

$15 million for small business support (previously intended to prioritize MWBEs but now open to all businesses).

Impact on Minority- and Women-Owned Businesses

With the removal of targeted funding, MWBEs will no longer receive priority access to recovery funds and must compete alongside all businesses. While they are still eligible for assistance, the lack of dedicated resources could make it more challenging for smaller and historically underfunded businesses to secure aid.

Next Steps and Timeline

The city’s revised plan is currently open for public input until April 3, 2025. The Asheville City Council is expected to vote on the final version on April 8, 2025. Once approved, HUD will release the funds, with disaster recovery projects expected to begin in fall 2025.

The rejection of DEI-based funding prioritization follows a broader federal shift in policy regarding race- and gender-based considerations in government grants and programs. 

This story will continue to develop as Asheville finalizes its recovery strategy and HUD issues its final approval of the revised plan.

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