Atlanta airport forfeits $37M in FAA grants over DEI rules
The Brief
Atlanta airport lost $37M+ in FAA grants after rejecting DEI terms
Federal funds tied to restroom, taxiway, and sustainability projects
City weighing options as future funding eligibility remains uncertain
ATLANTA - Hartsfield-Jackson Atlanta International Airport has reportedly forfeited more than $37 million in federal grant funding this summer after refusing to accept new terms tied to diversity, equity and inclusion (DEI) programs, according to The Atlanta Journal-Constitution. The money was part of a larger $57 million package from the Federal Aviation Administration intended for restroom upgrades, taxiway repairs, and sustainability projects. While the city still qualifies for future funding, this year’s allocation has been lost.
The city has said the airport can pursue other financing options without disrupting passengers or service providers. Officials emphasized that federal money makes up less than 10% of the airport’s six-year, $10 billion capital improvement budget.
The backstory:
Earlier this year, the Trump administration directed all recipients of U.S. Department of Transportation money to certify they do not operate DEI programs that could conflict with federal anti-discrimination law. The FAA added this language to its 2025 grant agreements.
While cities including New York, San Francisco, and Boston filed lawsuits challenging the mandate, Atlanta reportedly attempted to alter the grant documents to remove the DEI clause. FAA officials rejected the changes and gave Atlanta until Aug. 1 to comply. On July 29, airport general manager Ricky Smith informed the agency that the city could not sign the agreement with the new provisions. Days later, the FAA confirmed the funding would not be released.
What they're saying:
The City of Atlanta sent the following statement:
"The City of Atlanta’s airport is the busiest and most efficient on the planet, with large and complex staffing, operations and capital improvements, supported by an annual capital and operating budget of over $2 billion.
We are confident that the airport will be able to pursue alternative funding to advance these projects without impacting customers or airport service providers.
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.
The City 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."
What we don't know:
Federal officials have not said whether any other airports have lost money for the same reason. It is also unclear whether Atlanta will pursue litigation. Delta Air Lines, the airport’s largest tenant and financial backer of expansion projects, has declined to comment.
What's next:
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. Meanwhile, city leaders say they are weighing policy options to balance Atlanta’s long-standing minority contracting initiatives with access to federal funding. The outcome could shape how the airport finances major projects such as concourse expansions and infrastructure upgrades in the years ahead.