ASHEVILLE, N.C. (WLOS) — U.S. Department of Housing and Urban Development (HUD) Secretary Scott Turner says the department will not approve the city of Asheville's draft action plan in its current form due to what it calls "DEI criteria."

"HUD looks forward to helping thousands of North Carolinians rebuild after Hurricane Helene by directing funding assistance to impacted businesses, nonprofit organizations, and neighborhoods," Turner said in a written statement on Tuesday, March 11. "However, Asheville's draft action plan incorporated DEI criteria to prioritize some impacted residents over others, which was unacceptable."

In the news release, Turner's office quoted the following passage it says was in Asheville's draft action plan: “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.”

NEW U.S. HUD SECRETARY TO TOUR HELENE DISASTER SIGHTS IN NORTH CAROLINA

After being informed that its current plan would not be approved, Turner said Asheville officials "assured us that it was updating its draft action plan to be compliant."

"Once again, let me be clear: DEI is dead at HUD. We will not provide funding to any program or grantee that does not comply with President Trump's executive orders," he added.

CITY REVISES $225M DRAFT HELENE RECOVERY PLAN AFTER HUD REJECTS DEI ELEMENTS

The city of Asheville issued the following statement regarding Secretary Turner's remarks Tuesday:

We are in daily communications with our HUD representatives. 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.

Secretary Turner was in western North Carolina on Tuesday to tour Helene storm damage. He did not address the statements he made earlier in the day.

ASHEVILLE TO HOST PUBLIC MEETINGS ON FEDERAL DISASTER FUNDS, UNMET COMMUNITY NEEDS

HUD allocated $225 million in Community Development Block Grant–Disaster Recovery (CDBG-DR) funding to Asheville to address unmet disaster-related needs. The city held a series of public meetings in February to gather feedback and comments to incorporate into the draft action plan and inform which programs and activities would receive funding.

Congressman Chuck Edwards made the following statement about the City of Asheville's draft disaster plan on Tuesday:

“Natural disasters do not discriminate, and recovery assistance should not either. Including DEI criteria for the distribution of millions of Helene dollars that I fought to secure for our region’s recovery is sending a message that some folks deserve to recover more than others.

“I am glad to hear that the City of Asheville has decided to reevaluate its draft disaster plan to remove all DEI criteria. The City’s funding is not going to be stripped away for its misguided draft plan, but I stand with HUD leadership who will continue to work with Asheville leaders to create a plan that adequately supports the entire Asheville community.”

Al Whitesides, a Buncombe County commissioner, argued that dismantling DEI principles undermined efforts to ensure that everyone receives equitable access to critical resources and offer policies that dismantle systemic injustice that improve the lives of all Americans.

“It’s not giving anybody anything, but it’s giving people the opportunity who are qualified," Whitesides said. "We’re talking about qualified people who still have to jump through hoops.”

"If they knew the history of America, where we’ve come from, where we are today and where we need to go, it would be a lot different,” he added.

See Asheville's draft action plan (March 10, 2025) below: