If the deadline for “DEI” policy modifications is missed, Charleston may lose $100 million in federal funds

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If the deadline for "DEI" policy modifications is missed, Charleston may lose $100 million in federal funds

Charleston, South Carolina, city leaders face a deadline by the end of December 2025 to revise diversity, equity, and inclusion (DEI) policies, or risk losing over $100 million in federal funding tied to community development grants.​

Key Concerns

City Councilmember William Gregorie expressed strong opposition, warning against perceived reversals in civil rights progress and noting a lack of clear federal guidance on what constitutes a DEI program. Councilmember Stephen Bowden called the federal interpretation discriminatory and potentially violative of the Civil Rights Act of 1964, highlighting risks to funding for flooding mitigation, affordable housing, and parks.​

Program Changes

Two programs—the Minority and Women-Owned Business Enterprise Office and the Racial Conciliation Commission—have already changed names and must adjust operations to comply with mandates from President Donald Trump’s early 2025 executive orders eliminating race-based considerations in spending and contracts. Corporation Counsel Julia Copeland emphasized efforts to address all potential compliance issues to avoid False Claims Act penalties. South Carolina Governor Henry McMaster’s executive order aligns with this by prioritizing merit in state decisions.​

Next Steps

A special community development meeting on December 11, 2025, will gather public input on contingency plans if funding is lost. These actions stem from broader federal enforcement, including Executive Order 14173, targeting DEI in grant recipients.

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