Adding to the challenge, companies must first be re-evaluated by their original certifying jurisdictions before they can even apply for recertification with the feds. Reviewing the new criteria, I found them so subjective and vaguely constructed that it would be nearly impossible for any firm to know whether it can ever again qualify.
This upheaval comes as cities are already fighting off the federal government’s threats to withhold funding across a broad array of programs if they refuse to end diversity, equity and inclusion initiatives. Atlanta, Boston and other local governments have long argued that these programs strengthen — not weaken — their economies and civic culture.
Five former Atlanta mayors, for example, recently wrote that “Black-owned firms alone contribute nearly $7 billion in annual revenue and tens of thousands of jobs to the Atlanta metro area.” Atlanta’s equal opportunity program, now more than 50 years old, has helped minority- and women-owned firms, as well as small businesses, secure about $1.4 billion out of $5.2 billion of contracting dollars awarded at Hartsfield-Jackson Atlanta International Airport in the last decade, according to an airport report. Multiply that impact across the nation’s largest metro areas and the economic consequences reach into the tens of billions.
Recognizing those stakes, dozens of local governments have taken the administration to court and secured temporary injunctions protecting their federal funds not only for transportation but also for housing, health care and other programs. The cities and counties argue that diversity initiatives are lawful, narrowly tailored and irrelevant to the federal grants now being threatened.
Atlanta, however, has not joined the lawsuits or initiated one of its own in the conservative federal court for the Northern District of Georgia. Instead, it appears to be searching for a workaround. The Atlanta Journal-Constitution recently reported that city officials had quietly rebranded the Office of Equity, Diversity and Inclusion as “the Office of One Atlanta.” Though the mission — advancing anti-discrimination, human rights and social impact — remains essentially unchanged, renaming the office is low-hanging fruit. The harder question is whether Atlanta and other cities will ultimately give in to the administration’s central demand: ending race- and gender-based contracting goals that were created to remedy documented, longstanding discrimination.
Some local governments are being advised that they can sign the administration’s certificate of compliance and still operate a disadvantaged business enterprise program — perhaps substituting other local goals for race- and gender-based criteria. Cities would be taking a huge risk, however, not only in the potential loss of billions in revenue but also in exposure to potential enforcement under the federal False Claims Act — one of the most punitive contracting-related statutes on the books. Local and state governments could face further investigations or whistleblower suits based solely on claims that they might be considering race or gender. The uncertainty alone threatens to stall local contracting and discourage firms from bidding.
Public officials now face a defining question: Will they defend the programs that helped make their economies more inclusive or will they bend to political pressure that could have grave economic consequences — both in lost federal dollars and lost revenue from minority and female business enterprises? The answer will shape not only the future of minority business opportunity but the direction of local economies.
Some leaders are signaling a willingness to stand firm. Boston’s mayor, Michelle Wu, has urged cities to fight on every front — legally, politically and through public mobilization. In Atlanta, former mayors joined the current mayor, Andre Dickens, last month for a unity rally at a historic Black church to educate residents on what is at risk in the federal attacks on a broad array of diversity programs. Community members and consumers are also pushing back, targeting companies whose actions appear to align with the administration’s crackdowns.
There are also signs of renewed civic engagement. Organizations like Run for Something that recruit young progressive political candidates have recruited tens of thousands of people, mostly under 40, exploring running for state or local office. A Soul of Atlanta coalition that I helped convene with former mayors Shirley Franklin and Bill Campbell urged faith, business and education leaders to double down on diversity.
Neither of the two major parties will retain power forever. If cities and states put up a good fight, utilizing every means at their disposal, the pendulum might soon swing back their way. The souls of our communities should not be for sale. Now is the moment to choose courage over deference. The stakes are too high, and the cost of retreat too great, for anything less.
Governing’s opinion columns reflect the views of their authors and not necessarily those of Governing’s editors or management.
