HUD Rejects Asheville, NC, Hurricane Recovery Plan Because It Targets DEI

HUD allocated $225 million to Asheville to help fund assistance to impacted businesses, non-profit organizations, and neighborhoods.

The U.S. Department of Housing and Urban Development (HUD) initially rejected Hurricane Helene recovery efforts in Asheville, North Carolina, because the city’s plans include a diversity, equity, and inclusion (DEI) section.

According to HUD, Asheville’s DEI portion of the Hurricane Helene recovery plan conflicts with President Donald Trump’s executive orders from January.

In a March 11 statement, HUD Secretary Scott Turner wrote that HUD “looks forward to helping thousands of North Carolinians rebuild after Hurricane Helene.” HUD allocated $225 million to Asheville to help fund assistance to impacted businesses, non-profit organizations, and neighborhoods.

However, “Asheville’s draft action plan incorporated DEI criteria to prioritize some impacted residents over others, which was unacceptable,” Scott added. “After HUD informed Asheville that its plan was unsatisfactory and it would not be approved, the city assured us that it was updating its draft action plan to be compliant.”

Hurricane Helene made landfall near Perry, Florida, on Sept. 26, 2024, as a Category 4 Storm with sustained winds of 140 mph. The storm wreaked havoc as it pushed through an already-flooded western North Carolina. According to WCNC, Hurricane Helene was the worst and deadliest flood in state history.

The National Oceanic and Atmospheric Administration estimated that Hurricane Helene caused more than $78.7 billion in damages. In North Carolina, the storm reportedly killed more than 100 people and caused more than $60 billion in damages.

In its 125-page plan, city leaders said the funds from HUD would be spent on economic recovery, infrastructure, and housing. Most of the HUD funding, $130 million, would be spent on infrastructure.

However, HUD slammed plans on page 76 to support small businesses.

“Within the Small Business Support Program, the City will prioritize assistance for Minority and Women-Owned Businesses (MWBE) within the scoring criteria outlined within the policies and procedures,” the plan reads.

“Once again, let me be clear: DEI is dead at HUD,” Scott said in his statement.”We will not provide funding to any program or grantee that does not comply with President Trump’s executive orders.”

In Buncombe County, where Asheville is located, there are roughly 858 Black-owned firms and 26,122 White-owned firms. According to the State of Black Asheville, Black-owned businesses average $40,000 in annual sales, compared to $400,000 for white-owned firms.