Bloomberg News

Atlanta’s Hartsfield-Jackson International Airport lost 9.4% of its capital funding, at least temporarily, in a fight with the federal government as a slew of cities, counties and other local entities fight the same policies in court. 

At issue is the Trump administration’ s requirement that local entities disavow diversity, equity and inclusion policies as a condition to receive federal grants for transportation and housing. 

The airport tried to get the U.S. Department of Transportation to modify its policies on the grants this summer but was rejected. 

Federal Aviation Administration District Office Manager Parks Preston told Airport General Manager Ricky Smith it refused to approve $57 million in grant requests for fiscal year 2025. Of this $57 million, $19.5 million may be available in the following fiscal year, but Preston made clear the funding would be available only if the airport ends its policies promoting diversity, equity and inclusion. 

“The city of Atlanta informed the Federal Aviation Administration that it had concerns about the new standard grant agreement and could not sign it,” an FAA spokesperson said Friday. “The FAA is working with the city to resolve these issues. Some of the funds will still be available if the city chooses to sign a grant agreement next fiscal year.” 

The FAA also requires the airport to work with Immigration and Customs Enforcement officers. There’s no indication about the airport’s position on this. 

KBRA this summer said federal funds were expected to account for 9.4% of the airport’s $12.6 billion in capital spending through fiscal 2031.

Meanwhile, a slew of U.S. cities, counties and other local entities have sued the Trump administration over the requirement that the entities eliminate DEI measures as a condition of federal grants. 

New York City; Los Angeles; Chicago; Seattle; Denver; Columbus, Ohio; Pittsburgh; Milwaukee County; Minneapolis; San Diego and many others filed suit in District Court for the Western District of Washington this spring over DEI policies. 

U.S. District Judge Barbara Rothstein issued a temporary restraining order against the administration’s DEI policies. 

Larger sums of money are believed to be at stake in the lawsuit than in Atlanta’s struggle. 

Atlanta’s airport is rated Aa3 by Moody’s Ratings, AA by S&P Global Ratings and AA-plus by KBRA.