Liberal North Carolina city's DEI plan for hurricane relief shut down by HUD secretary

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Exclusive: HUD announces cancellation of $4M in DEI contracts

Housing and Urban Development Secretary Scott Turner on cutting $4 million in DEI contracts and uncovering $1.9 billion in misplaced funds under the Biden administration.

Department of Housing and Urban Development (HUD) Secretary Scott Turner shut down a hurricane relief draft plan put forth by the city of Asheville, North Carolina, that included a diversity, equity and inclusion (DEI) initiative that would have prioritized some residents over others, his office said.

"Once again, let me be clear, DEI is dead at HUD," Turner said of axing the plan. "We will not provide funding to any program or grantee that does not comply with President Trump’s executive orders."

"HUD looks forward to helping thousands of North Carolinians rebuild after Hurricane Helene by directing funding assistance to impacted businesses, nonprofit organizations and neighborhoods," Turner added. "However, Asheville’s draft action plan incorporated DEI criteria to prioritize some impacted residents over others, which was unacceptable. 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 city of Asheville, which is a Democratic stronghold in a state that has elected Republican presidential candidates since 2012, posted a draft plan to its website on March 4 on how it could distribute millions of dollars for Hurricane Helene disaster relief, including a section that focused on DEI.

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Department of Housing and Urban Development (HUD) Secretary Scott Turner shut down a hurricane relief draft plan put forth by the city of Asheville, North Carolina, that included a diversity, equity and inclusion (DEI) initiative that would have prioritized some residents over others. (Kent Nishimura/Reuters)

HUD allocated $225 million in a Community Development Block Grant in January under the Biden administration, after Hurricane Helene ripped through the state in September 2024, devastating thousands of residents, most notably in the western Appalachian region, with flooding, high winds, power outages and complete destruction of communities. At least 106 people died in the Tar Heel State during the storm, according to the state.

The city of Asheville detailed under a section in its draft plan titled "How Programs Will Support Vulnerable Populations" that minority- and women-owned businesses would be prioritized for assistance. 

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"Within the Small Business Support Program, the City will prioritize assistance for Minority and Women Owned Businesses (MWBE) within the scoring criteria outlined within the policies and procedures," reads the draft plan, which was reviewed by Fox News Digital. 

HUD allocated $225 million in a Community Development Block Grant in January under the Biden administration, after Hurricane Helene ripped through North Carolina in September 2024, devastating thousands of residents, most notably in the western Appalachian region, with flooding, high winds, power outages and complete destruction of communities. (Marco Bello/Reuters)

HUD was alerted to the language in the draft plan and took appropriate action against it after investigating the matter, Fox News Digital learned. 

HUD cited that on President Donald Trump's first day in office, he signed an executive order focused on "ending radical and wasteful government DEI programs" and one focused on restoring merit-based opportunity and "ending illegal discrimination," which ended DEI practices at the federal level in favor of merit-based systems.

"At HUD, we are taking a detailed and deliberate approach in every aspect of our work to ensure we are serving all communities regardless of race, color, or creed," Turner said in a comment Wednesday to Fox News Digital. "Let this send a clear message that no detail will go unnoticed, adherence to President Trump’s Executive Orders is mandatory. We appreciate that Asheville has reversed course and is now working with us to get this right." 

Democratic Asheville Mayor Esther Manheimer said in comments provided to Fox News Digital that the city was "working closely with HUD as we continue to navigate the changing compliance requirements of the new administration."

"We are grateful for the administration’s support in our recovery efforts," Manheimer continued. "The City will ensure it meets current federal standards in order to facilitate approval of critically needed funding to help the city recover from the devastation of Tropical Storm Helene." 

The city released an updated draft on Monday that did not include a section on prioritizing minority- and women-owned businesses, Fox New Digital found. 

EXCLUSIVE: TRUMP HUD SECRETARY CANCELS $4M IN DEI CONTRACTS AFTER LAUNCHING DOGE TASK FORCE

Department of Housing and Urban Development Secretary Scott Turner announced on Fox News in February that the agency was in the midst of canceling $4 million in DEI contracts after the freshly-formed Department of Government Efficiency (DOGE) task force uncovered $260 million earlier in the month. (Bill Clark/CQ-Roll Call, Inc via Getty Images)

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Turner announced on Fox News in February that HUD was in the midst of canceling $4 million in DEI contracts after the federal agency's freshly-formed Department of Government Efficiency (DOGE) task force uncovered $260 million earlier in the month. 

The DEI contracts focused on "culture transformation," according to HUD, including "outward mindset training" — which is a DEI initiative aimed at teaching people to focus their attention on inclusivity and the needs and objectives of others — as well as diversity and inclusion research subscription services.

Department of Housing and Urban Development Secretary Scott Turner shut down a hurricane relief draft plan put forth by the city of Asheville, North Carolina, that included a diversity, equity and inclusion initiative that would have prioritized some residents over others, his office said.? (Getty Images)

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"It is inexcusable the American taxpayer was footing the bill for the promotion of DEI propaganda," Turner said at the time. "Not only was this costing millions of taxpayer dollars, but it was also wasting valuable time that should have been used to better serve individuals and families in rural, tribal and urban communities. DEI is dead at HUD."