Mayor Spencer Takes Action to Protect Federal Funds for St. Louis
In response to the recent changes in federal guidance that could jeopardize federal funds received by the City of St. Louis, Mayor Cara Spencer has issued a public letter to City residents, workers, and businesses. The letter outlines the difficult conversations and decisions that need to be made in order to comply with the new federal demands.
“St. Louis, like many other local governments in the United States, is facing tough choices on how to address federal mandates to eliminate policies and programs that aim to combat systemic discrimination,” said Mayor Spencer.
The uncertainty created by these changes is causing frustration for many, and the consequences for non-compliance are severe for both the City and individuals. This also has a direct impact on the City’s ability to secure federal disaster recovery funding.
As a precautionary measure, the City has temporarily paused its M/WBE certification activities while it assesses the necessary next steps. Mayor Spencer has directed her administration to act quickly and strategically in shaping legislation to update the existing ordinances governing M/WBE construction requirements. The goal is to do so in a way that still prioritizes the community and its values.
“I have instructed my team to work swiftly in creating a supportive construction contract framework that is adaptable to the new federal landscape. This legislation will be ready to file on the first day of the upcoming Board of Aldermen’s legislative session, and I will work closely with the Board to ensure its speedy passage,” said Mayor Spencer.
The Mayor’s letter also outlines the next steps that will provide much-needed clarity for City departments, minority subcontractors, general contractors, and developers. Effective Monday, August 4, 2025, City departments will not issue any new non-emergency contracts for City construction projects that fall under the M/WBE goals. During this pause, the City will work with the community to develop a new construction contracting ordinance that takes into account the changes in the federal landscape while still prioritizing the community’s values. A formal announcement on the revised requirements is expected in mid-September.
To avoid any potential legal issues, already-executed City construction contracts will continue to operate under their existing terms during this time. The City will also work with its impacted departments to prepare them for the significant task of implementing the revised contract requirements that comply with the new federal framework.
