CHARLOTTE, N.C. — The city of Asheville changed language in a disaster recovery plan that was publicly criticized earlier this week by the leader of the Department of Housing and Urban Development for inclusion of “DEI criteria.”

On March 4, the city released a 125-page document detailing how to use $225 million HUD allocated to help Asheville with disaster recovery from Helene. The original plan outlined Helene’s fierce impacts on housing, infrastructure and the economy. The storm caused over $59 billion in damage across Western North Carolina.

A portion of the money – $15 million — will go toward supporting small businesses. The Small Business Support program will assist in “job creation, job retention, business expansion, and/or encourage entrepreneurship for economic diversification within the City of Asheville.”

But HUD Secretary Scott Turner took issue with one section that detailed how Asheville would support vulnerable populations. It stated, “the City will prioritize assistance for Minority and Women Owned Businesses.”

A day after the plans release, Turner took to X to denounce the priority given to these businesses.

“DEI is dead at HUD. Looking into this,” his tweet said.

In a Tuesday news release, Turner criticized this assistance, saying it incorporated “DEI criteria to prioritize some impacted residents over others.” The release said HUD advised Asheville its plan were “unsatisfactory” and would not be approved in its original form. The city of Asheville assured the department it would update the plan to be in compliance, the release said.

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

On Jan. 20, Trump signed an executive order titled “Ending Radical And Wasteful Government DEI Programs And Preferencing.” The order, which is facing legal challenges, aimed to rid of several diversity, equity and inclusion programs and policy from the federal government.

On March 10 the city of Asheville released a revised version of the recovery plan. The updated plan states the Small Business Support program “is intended to support all businesses, including those that employ (low and moderate income) individuals and vulnerable populations.”

“City staff are in daily communications with our HUD representatives,” city spokesperson Kim Miller wrote in a statement to The Charlotte Observer. “We have taken proactive steps to resolve any issues and meet federal standards for activation of critical recovery resources for all residents. We remain committed to working with our federal partners until final submission of the plan in April. “

The city has three public sessions planned to allow the public to give input on the plan before it must be submitted on April 21.

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