Atlanta Airport Loses $37 Million in Federal Funding Over DEI Dispute

Hartsfield-Jackson Atlanta International Airport has forfeited more than $37 million in federal grant funding after city officials declined to accept updated requirements tied to diversity, equity, and inclusion (DEI) programs.

The funding, part of a $57 million package from the Federal Aviation Administration (FAA), was intended for infrastructure improvements including restroom renovations, taxiway repairs, and sustainability projects. By rejecting the new DEI conditions, the airport lost access to its portion of this year’s federal allocation. While the city remains eligible to apply for FAA grants in future years, the 2025 funds will not be recoverable.

City officials emphasized that federal funding represents less than 10% of the airport’s six-year, $10 billion capital improvement program. “The City is confident that the airport will be able to pursue alternative funding to advance these projects without impacting customers or airport service providers,” a statement said.

The Backstory
Earlier this year, the Trump administration required recipients of U.S. Department of Transportation funding to certify they do not operate DEI programs that could conflict with federal anti-discrimination law. The FAA incorporated this language into its 2025 grant agreements.

Cities including New York, San Francisco, and Boston have filed lawsuits challenging the mandate. Atlanta reportedly attempted to modify the grant documents to remove the DEI clause. FAA officials rejected the changes, and the city informed the agency on July 29 that it could not sign the agreement under the new provisions. Days later, the FAA confirmed the funding would not be released.

What We Know

• The city maintains that airport operations will not be disrupted despite the lost funding.
• Federal officials have not disclosed whether other airports have lost money for similar reasons.
• Delta Air Lines, the airport’s largest tenant and major supporter of expansion projects, declined to comment.

Next Steps
The airport already received a $10.6 million grant for airfield work earlier this year and may be eligible for more than $19 million in fiscal year 2026 if it agrees to the federal terms. City leaders are evaluating policy options to balance Atlanta’s minority contracting initiatives with access to federal funding. The outcome could influence major infrastructure projects, including concourse expansions, in the years ahead.