Atlanta, September 26, 2025
News Summary
Hartsfield-Jackson Atlanta International Airport has forfeited over $37 million in federal grant funding intended for various airport projects due to a new DEI clause in grant agreements. Although the airport lost this year’s allocation, it remains eligible for future funding. The loss is linked to a directive from the previous administration requiring disavowal of diversity, equity, and inclusion initiatives. Local officials are exploring ways to align federal regulations with their policies while seeking alternative funding sources.
Atlanta
Hartsfield-Jackson Atlanta International Airport has forfeited over $37 million in federal grant funding from the Federal Aviation Administration (FAA). This funding loss is part of a larger $57 million package aimed at enhancing various airport projects, including restroom upgrades, taxiway repairs, and sustainability initiatives.
Though the airport has lost this year’s funding allocation, it is still eligible for future federal funding opportunities. Importantly, federal funding represents less than 10% of the airport’s substantial $10 billion capital improvement budget over the next six years.
This funding loss stems from a directive set forth during the Trump administration that requires recipients of federal funding to disavow any diversity, equity, and inclusion (DEI) programs. In response to this, the FAA integrated a DEI clause into its 2025 grant agreements, and Atlanta officials made attempts to modify the grant documents to exclude this clause. However, these amendments were rejected by the FAA.
To comply with the new requirements, Atlanta was tasked with responding by August 1. On July 29, airport general manager Ricky Smith communicated to the FAA that the city could not authenticate the agreement given the new provisions. Subsequently, the FAA confirmed that the funding would not be disbursed.
A representative from the City of Atlanta indicated that the city is exploring options to reconcile federal regulations with its local policies and values. Mayor Andre Dickens assured that the airport is seeking alternative funding sources. Previously, Hartsfield-Jackson Atlanta International Airport had successfully obtained a $10.6 million grant for airfield enhancements earlier in the same year.
If adjustments are made to current policies, Atlanta may recoup approximately $19.6 million in future federal funding. The city is currently evaluating how to align its longstanding minority contracting initiatives with its ability to access federal funding. Other cities, including New York, San Francisco, and Boston, have initiated litigation to challenge the DEI mandate, although it remains uncertain whether Atlanta will follow a similar path regarding its funding loss.
Delta Air Lines, the largest tenant at the airport, has chosen not to comment on the funding issue. Historically, Atlanta’s minority business programs have played an essential role in propelling the growth of Black-owned businesses within the city. The airport has significantly contributed to the local economy and stands as a key institution for minority advancement.
Funding Overview
- Lost FAA funding: $37 million
- Total FAA package: $57 million
- Initial grant received: $10.6 million
- Potential future funding recoup: $19.6 million
- Capital improvement budget: $10 billion (over six years)
Recent Developments
- DEI clause added to grant agreements: FAA 2025
- Deadline for compliance: August 1
- City’s response: Unable to sign agreement due to DEI provisions
- FAA’s confirmation: Funding not released
Impacts
- Federal funding constitutes less than 10% of the operating budget.
- Potential for legal action remains uncertain.
- Major impact on minority contracting initiatives.
FAQ
What is the amount of federal grant funding lost by Hartsfield-Jackson Atlanta International Airport?
The airport has forfeited over $37 million in federal grant funding.
What was the total FAA funding package for the airport?
The total FAA package was $57 million.
What kinds of projects were the FAA funds intended to support?
The funding was intended for restroom upgrades, taxiway repairs, and sustainability projects.
Is the airport still eligible for future federal funding?
Yes, the airport can still qualify for future funding despite losing this year’s allocation.
How does federal funding compare to the airport’s overall budget?
Federal funding constitutes less than 10% of the airport’s six-year $10 billion capital improvement budget.
What was the reason behind losing the federal funding?
The loss is linked to a directive from the Trump administration requiring federal funding recipients to disavow diversity, equity, and inclusion (DEI) programs.
What steps did Atlanta officials take regarding the DEI clause?
The FAA added a DEI clause to its 2025 grant agreements, and Atlanta officials attempted to alter the grant documents to remove the DEI clause, but the FAA rejected these changes.
What was the deadline given to Atlanta to comply with the new DEI requirement?
Atlanta was given a deadline until August 1 to comply with the new requirement.
What was the response of Delta Air Lines regarding the funding issue?
Delta Air Lines, the airport’s largest tenant, declined to comment on the issue.
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Author: STAFF HERE ATLANTA WRITER
The ATLANTA STAFF WRITER represents the experienced team at HEREAtlanta.com, your go-to source for actionable local news and information in Atlanta, Fulton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as vibrant music festivals like Shaky Knees and Music Midtown, major cultural celebrations including Dragon Con and the Atlanta Film Festival, and iconic sporting events like the Peachtree Road Race. Our coverage extends to key organizations like the Metro Atlanta Chamber of Commerce and the Atlanta Convention & Visitors Bureau, plus leading businesses in logistics, beverages, and retail that power the local economy such as Delta Air Lines, The Coca-Cola Company, and The Home Depot. As part of the broader HERE network, including HEREAugusta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
