A Trump Cabinet official says the Department of Housing and Urban Development will not approve Asheville’s proposed plan for $225 million in disaster recovery if that spending plan includes programs related to diversity, equity and inclusion.
HUD Secretary Scott Turner wrote that “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,” he said.
Last week, Asheville released its draft proposal for HUD’s Community Development Block Grant Disaster Recovery program.
As written, the plan would “prioritize assistance for Minority and Women Owned Businesses” as part of a $15 million Small Business Support Program.
“After HUD informed Asheville that its plan was unsatisfactory and it would not be approved, the city assured us that it was updating its draft action plan to be compliant,” the HUD press release said.
City officials declined to confirm who from the city communicated about the changes with federal authorities, but in a statement, spokesperson Kim Miller said that the city is “in daily communications with our HUD representatives.”
“We have taken proactive steps to resolve any issues and meet federal standards for activation of critical recovery resources for all residents. We remain committed to working with our federal partners until final submission of the plan in April,” she said.
Miller also declined to respond to questions about whether city officials made any other concessions to HUD requests in the proposal.
The proposal includes $130 million for infrastructure, $30 million for commercial district revitalization, $26 million for the construction of multi-family affordable housing and $15 million for small business support, among other items.
The money was originally allocated under the Biden Administration to help Asheville address unmet needs from Hurricane Helene, which unleashed more than $1 billion in damage to the city, along with a $17.6 million loss in revenue to the city.
The city will continue to take public input on its HUD funding spending plan through April 3. A City Council vote on a final action plan is expected on April 8, with HUD projects slated to start by fall of 2025.
