When the federal government bigfoots you, they do it with authority. There’s no ambiguity. It’s a stern warning with an immediate timeline and significant consequences.
On April 24, U.S. Secretary of Transportation Sean P. Duffy sent out a four-page missive laying down the law — the federal law — about DEI and transportation projects.
“As recipients of such DOT funds,” Duffy warned municipalities and transportation agencies, “you have entered into legally enforceable agreements with the United States Government and are obligated to comply fully with all applicable Federal laws and regulations.” Noncompliance with applicable federal rules, including new anti-DEI measures, could lead to “enforcement action” the missive warned, possibly jeopardizing federal funding.
The letter also warns about interfering in immigration — a clear shot at sanctuary cities.
Duffy’s letter makes abundantly clear what the new federal policy is on diversity programs: They are at an end. This is going to have profound consequences for large-scale transportation projects that rely on federal assistance: airports, rail projects, roads, bridges and the like. I’m particularly interested in how this may impact the North Central Texas Council of Governments, DFW International Airport and Love Field.
It’s not surprising that the Trump istration is following through on its promise to end diversity and inclusion initiatives. When a president cannot run for another term, it allows an istration to act aggressively without worrying about reelection. And you can be sure they are not worried about the future or, surprisingly in of the typical arc of U.S. history, the long-term health of the Republican party.
The rules of the game have changed dramatically. In fact, it’s a totally different game. Duffy reminded, “The Equal Protection principles of the Constitution prohibit State and Federal governmental entities from discriminating on the basis of protected characteristics, including race.”
It is reasonable to assume that the istration’s interpretation will pertain to Community Development Block Grants and arts funding that affect municipalities. Cities should be thinking holistically about what this will do to their budgeting. Now might be the time for saving, not significant borrowing or launching new projects.
Large cities and other governmental entities have favored minority- and women-owned businesses, giving them greater opportunity even when they are not the lowest bidder. How they unwind these programs with existing contracts in place will be interesting.
Already over the last few years, we’ve seen the state Legislature reduce the rights of municipalities, often for good reason. For many years, Dallas has operated like it’s not part of Texas, emboldened by apathetic residents and a small army of city attorneys ready to rumble. That approach won’t work now. The long, strong arm of the federal government is at the doorstep.
Even more concerning, Dallas will have to comply quickly. There’s no grace period in Duffy’s decree, no time for the back-and-forth that the city likes to do with the state. This is the parent letting you know there’s a curfew and when you don’t follow the rules there will be no allowance.
I expect Mayor Eric Johnson will want to take an active role in compliance with this edict to show off his Republican credentials. But can the city’s missing mayor stay past his 3 p.m. nap time, when he typically leaves City Council meetings, and provide some leadership? Time will tell.
I have mixed feelings about this measure. On one hand, my firm has routinely been unable to gain work on projects because it’s had the obstacle of being founded, owned and operated by white males. Lacking the Minority and Women-Owned Business Enterprise certification has inhibited my company’s ability to grow. In other instances, we’ve had to outsource work to minority business partners that we are perfectly capable of doing.
On the other hand, l’m concerned because while local government is closest to the people and has the most impact on their lives, it’s the federal government making these decisions. Maybe this is what people get for not voting in any other than presidential elections. They get a centralized approach.
The big foot of the federal government has moved quickly, and it will affect large government projects across the region. Cities would be wise to listen to the secretary’s suggestion, “Proactive engagement is strongly advised to prevent inadvertent noncompliance.”
Marilla Street may not like these policies, but the time for debate is over. The feds aren’t messing around.