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Trump's orders, state legislation kill DEI, city attorney tells council

By Bill Moss, Published: July 29, 2025

Executive orders signed by President Trump and state legislation that would become law if the General Assembly overrides a veto bar policies and practices that promote diversity, equity and inclusion in the city of Hendersonville, City Attorney Angela Beeker told the city council last week.

The executive orders Trump signed upon taking office terminated DEI programs in federal agencies, combated “illegal private sector DEI preferences, mandates, policies, programs and activities” and barred recipients of federal grants from operating DEI programs.

“That’s the one that really affects us as a local government the most because we receive federal funding,” Beeker told the council during its July 23 meeting. New federal funding applications require a certification “that we don’t have and won’t have any kind of DEI programs and activities,” she said. “And if we have DEI programs, having made that certification, it can subject us to liability under an act called the False Claims Act.”

The executive order is “very broad and even though it doesn’t have the force of law, it still has very serious implications,” Beeker said. She cited a letter that the EEOC sent to 20 major law firms in the United States.

“They said in that letter that telling recruiting committees or recruiting firms that you want diverse candidates — just doing that is considered unlawful discriminatory DEI practices, in the administration’s opinion,” she said.

For the city, the same prohibition would apply.

“So, for example, diversity requirements for hiring panels, or if you wanted to have a diverse candidate pool, any type of preference like that, they’re going to consider to be a violation,” Beeker said.

Under the False Claims Act, if the city certified that it had no DEI programs and an investigation “determined that we did have a DEI program, such that that certification was false, we could be subject to litigation and have to pay back three times the amount of the grant and could have civil penalties imposed against us.”

Veto override vote expected

A state law, House Bill 171, “says you can’t use state funds or any public money to promote, support, fund, implement or maintain DEI initiatives or programs,” Beeker said. The state law carries a penalty of $10,000 per violation “and that could be against individuals, not just the city, plus personal liability for damages suffered by local government as a result, and then also removal from office.”

The bill also requires the city to report annually to the state auditor “activities that the city did to remove DEI and comply with this law” and directs the state auditor’s office to conduct “compliance audits.”

Although Gov. Josh Stein vetoed House bill 171 on July 3, legislative leaders are expected to attempt an override. (The bill was on the House calendar for possible action on July 29.)

“As you know, the meetings of our DEI committee have been suspended until we know what is going to happen, primarily at the state level, because this is going to have the force and effect of law if the veto gets overturned,” Beeker told council members. “Already we have retooled a few smaller grants to comply, but we will be bringing back policy amendments and things like that for you all to consider, even in light of the executive orders.”

City response to concerns

The city responded to citizens’ concerns about Trump’s executive order back in March in a statement it issued publicly, saying it remained “committed to serving and representing all members of our community with fairness, dignity, and respect.” But, it added, because it is “required to operate within the framework of state and federal laws … (the city) must also consider the legal risks associated with noncompliance.”

Here is the statement the city posted on its website and on Facebook on March 21:

“As leaders of a representative government, we work to ensure that all residents and customers continue to have access to City programs and services that contribute to a high quality of life.

“City staff are currently reviewing recent executive orders and proposed state and federal legislation to assess their potential impact on local governments’ abilities to uphold protections against discrimination and ensure equal service to the public.

“We recognize there are many in our community experiencing fear, frustration, and the feeling of not being heard. We acknowledge these concerns and affirm that their voices matter. Hendersonville is stronger when all people feel safe, valued, and included, and we remain committed to listening and engaging with our residents in meaningful ways.

“As a municipal government, we are required to operate within the framework of state and federal laws. While we remain dedicated to fostering a welcoming, vibrant, and healthy community, we must also consider the legal risks associated with noncompliance, including potential liability, legal action, and funding implications. We do not take this responsibility lightly.

“Above all, we remain steadfast in our duty to serve and support all residents of Hendersonville with professionalism, integrity, and respect.”

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