City Pivots to Dodge Federal DEI Claw Backs, While Honoring Values
Date Posted: August 4, 2025
Posted In: Discussion, Ideas, News, Workforce,
by Tom Finan, Executive Director/Co-Founder, Construction Forum
The Trump Administration’s claw back of grant funds for contracts demonstrated to have ties to DEI has prompted the City of St. Louis to take drastic action.
Last Friday, in response to escalating changes in federal guidance putting at risk federal funds received by the City of St. Louis, today Mayor Cara Spencer issued a public letter to City residents, workers, and businesses. In the letter Mayor Spencer outlined the difficult conversations and decisions faced by the City as it navigates a path forward.
“Like local governments across the United States, St. Louis faces challenging decisions on how to respond to federal demands to eliminate some policies and programs designed to overcome systemic discrimination,” Mayor Spencer stated in the letter. “The frustration with the uncertainty created by these changes is universal. Consequences for non-compliance are severe, target both the City and individuals, and impact the City’s efforts to secure federal disaster recovery funding.”
The Mayor’s letter noted that, “St. Louis is a better City as a result of diversity, equity, and inclusion. There is no question that policies and programs designed to overcome systemic discrimination, lift communities, create opportunity, and right past wrongs have driven our City forward.”
At the same time, however, she observed that the City is at greater risk for federal DEI claw back than other municipalities, particularly given that FEMA funding for tornado relief has not yet been awarded.
“Adaptive to Changed Landscape”
Recently the City paused its M/WBE certification activities while it assessed the necessary next steps. The City, “will now move quickly and strategically to shape legislation updating the existing ordinances governing its M/WBE construction requirements, and is committed to doing so in a way that still centers our community and our values,” Mayor Spencer stated in the letter
“I have directed my administration to move rapidly to shape legislation creating a supportive construction contract framework adaptive to the changed federal landscape ready to file on the first day of the upcoming Board of Aldermen’s legislative session, and will work with the Board to ensure its expeditious passage. This is no small task, but St. Louis is no stranger to centering our community’s values through difficult but necessary work,” Mayor Spencer said in a statement issued Saturday.
Outlining Next Steps
Mayor Spencer’s letter outlined next steps “providing the clarity that is critically needed at this point for City departments, minority subcontractors, general contractors, and developers”:
- “Out of an abundance of caution and the need to ensure clarity and consistency, effective the start of business day on Monday, August 4, 2025, City departments will not issue any new non-emergency contracts for City construction projects that are covered by the City’s M/WBE goals.”
- “During this pause on new contracts, the City will work with the community to expeditiously develop a new City construction contracting ordinance that acknowledges the changes in the federal landscape but centers our community’s values. The City anticipates announcing a formal direction on revised requirements mid-September.”
- “To avoid placing developers, contractors, and subcontractors further at risk of litigious breach of contract scenarios, already-executed City construction contracts will continue to operate under existing terms during this time.”
- “The City will work with its impacted departments to prepare them for the significant lift of implementing revised contract requirements which comply with the changed federal framework.”