Hartsfield-Jackson Atlanta International Airport has forfeited approximately $37.5 million in federal grant money. This loss stems from airport leadership's refusal to accept new language in Federal Aviation Administration (FAA) grant agreements. The new language required recipients to disavow their diversity, equity, and inclusion (DEI) programs.
The airport was initially slated to receive over $57 million in FAA grant dollars before the fiscal year concluded this month. These funds were designated for several critical projects. These included restroom renovations, taxiway pavement replacement, and initiatives aimed at sustainability and reducing emissions.
Key Takeaways
- Hartsfield-Jackson Atlanta International Airport lost $37.5 million in FAA grants.
- The loss is due to refusing new grant terms regarding DEI programs.
- Initial funding was for restrooms, taxiways, and sustainability projects.
- Atlanta Mayor Andre Dickens is evaluating options for future funding.
- More than $19 million could be available in fiscal year 2026 if terms are accepted.
Federal Grant Language and Airport Response
The new grant condition, mandated by the Trump administration, required all federal funding recipients to disavow their DEI programs. Documents obtained by The Atlanta Journal-Constitution (AJC) confirm Atlanta's forfeiture of these funds. An FAA spokesperson confirmed that about $37.5 million of the original allocation is now permanently lost.
This situation highlights a broader tension between federal directives and local government policies. Many American airports rely heavily on federal funding for large-scale capital improvement and infrastructure projects. Hartsfield-Jackson is no exception.
Fast Fact
Federal funding typically accounts for a significant portion of major airport infrastructure projects. For Hartsfield-Jackson, federal money represents less than 10% of its total capital program over the next six years, amounting to approximately $1 billion.
Impact on Atlanta's Infrastructure Projects
Atlanta Mayor Andre Dickens recently informed the AJC that his team was assessing potential changes to the city's minority contracting and inclusion programs. This evaluation aimed to ensure the city could continue accessing vital federal funds across its various departments. However, a substantial portion of the airport's federal money has already been lost during this review period.
For instance, the ongoing expansion of Concourse D at Hartsfield-Jackson relies on significant federal investment. This project is currently leveraging $40 million in U.S. Department of Transportation (DOT) grants. Such projects underscore the importance of federal funding for the airport's growth and modernization efforts.
"Federal funding for the airport, while important, represents less than 10%, approximately $1 billion over the next 6 years, of the airport’s total capital program over the same period," said Michael Smith, spokesman for Mayor Dickens.
Smith added that the city is confident the airport "will be able to pursue alternative funding to advance these projects without impacting customers or airport service providers." This statement suggests Atlanta is exploring other financial avenues to keep its projects on track.
The Mandate on Diversity, Equity, and Inclusion
The core of the dispute lies in the new grant language issued by the Trump administration. In January, President Donald Trump signed an executive order requiring all federal funding recipients to agree to anti-discrimination laws. This order aimed to prevent discrimination based on race, color, religion, sex, or national origin.
Background on the Mandate
In April, then-Secretary of Transportation Sean Duffy sent a letter to federal grant recipients. This letter outlined the new requirement. It stated that recipients must agree not to promote "diversity, equity, and inclusion" (DEI) programs if such programs were deemed to violate applicable anti-discrimination laws or executive orders. Adherence to this new language was presented as a legal obligation for financial assistance.
The FAA inserted these paragraphs into all grant templates for fiscal year 2025 and thereafter. The agency stated that any entity promoting "diversity," "equity," or "inclusion" programs that allegedly violate anti-discrimination laws would be designated as non-compliant. This included programs designed to achieve affirmative action goals, such as those banned in college admissions by a Federal Supreme Court decision.
Atlanta's Stance and Future Funding
Ricky Smith, General Manager of Hartsfield-Jackson Atlanta International Airport, formally rejected the new grant terms. Correspondence between the airport and the FAA, reviewed by the AJC, shows Atlanta's leadership pushed back against the language. They sought to modify or exclude the problematic provisions.
On July 29, the City of Atlanta emailed the FAA, stating its unwillingness to sign the agreement. The city explained that it "cannot accept the newly included provisions in the grant agreement that require the airport and the city to agree that certain federal funds cannot be used to promote DEI programs, which in our opinion, are not in accordance with the law."
Preston Parks, the FAA's District Office Manager for Atlanta, replied on August 1. He stated that the agency would not distribute the $57 million unless Atlanta signed the required terms. "We ask that you submit your applications and grant offers to the office that was submitted. The result is that the agency will not be able to accept the offers. The City would have to forfeit funding for fiscal year 2025," Parks wrote.
Atlanta's official response was direct: "The City cannot sign any modifications of offers or agreements that are not the standard that the FAA agency, city department, or airport accept." The airport officially gave up its funding for fiscal year 2025 by the August 1 deadline.
- $19 million: Amount of funds that will remain available to Atlanta in fiscal year 2026 if it signs the agreement next time.
- $10.6 million: Grant already received by the airport earlier this year for airfield improvements, according to the FAA's website.
Broader Implications for Other Cities
Atlanta is not alone in facing this challenge. Other major cities, including Boston, Denver, Kansas City, Minneapolis, New York, and San Francisco, joined a lawsuit against the administration over this issue. These municipalities sought to protect their DEI programs.
A court has temporarily protected some of these municipalities' programs. However, the long-term implications of these federal mandates remain uncertain. The situation highlights a growing national debate over the role and scope of DEI initiatives within public institutions receiving federal aid.
Delta Air Lines, the largest tenant at Hartsfield-Jackson and a major contributor to its construction funding, declined to comment on the matter. The city continues to evaluate its options. "Atlanta is currently evaluating all options to ensure alignment with our long-held values, local policy, and federal law and we are confident that the airport will be well positioned to receive federal funds in the future," said Michael Smith.
This suggests that while the immediate loss is significant, Atlanta intends to find a resolution that allows it to continue its development projects while upholding its local values and policies regarding diversity and inclusion.
