Diversity
St. Louis Stops Certifying MBE and WBE Construction Contracts
Mayor Cara Spencer says the city can't afford to lose federal funding as it strives to recover from a May tornado.
The City of St. Louis won't issue new city construction contracts under its Minority and Women-Owned Business Enterprise (M/WBE) goals, citing new federal guidance that could withhold or eliminate funding to cities that offer such programs, according to Mayor Cara Spencer’s office.
Effective Aug. 4, St. Louis won't issue new, non-emergency city construction contracts under its Minority and Women-Owned Business Enterprise (MBE/WBE) goals—citing new federal rules that could withhold or eliminate funding for cities that offer such programs, according to Mayor Cara Spencer.
“Federal agencies have communicated that they will terminate and also claw back grant funds awarded to local governments operating such programs,” she said in an Aug. 1. public letter.
Indicating that the city cannot afford to lose federal disaster relief funds, particularly as it works to recover from a May 16 tornado that damaged 5,000 buildings, Spencer said “unlike other communities, these changes threaten federal funding the city is actively fighting to secure.”
St. Louis goals for city construction projects are 25% participation by MBEs and 5% participation by WBEs.
Spencer said that policies and programs designed to overcome systemic discrimination have benefitted the city and that St. Louis will move quickly to come up with new MBE and WBE legislation that is adaptive to the changed federal landscape.
Todd Weaver, CEO of TW Constructors & Affiliates, an MBE design/build general contractor, said he is disappointed by the city’s action.
“As a certified minority business enterprise proudly headquartered in St. Louis, we are deeply concerned by the city’s decision to halt new M/WBE construction contracts,” Weaver said in a statement. “This action undermines decades of work to create a more inclusive, competitive, and equitable construction industry—and sends a disheartening message to diverse firms and the communities we serve."
According to Weaver, “While this decision does not currently impact our private-sector work, the broader implications are clear. It undermines the progress our region has made in expanding access, creating jobs and fostering diverse talent pipelines in construction, a field that still struggles with representation.”
The potential loss of federal funding “would disrupt promising development, public safety and infrastructure as well as community services,” Spencer said.
Weaver stressed that his company "will continue to create pathways for underrepresented businesses and individuals, regardless of shifting public mandates. We are actively partnering with private developers and national clients who share that same commitment.”
