Full Breakdown
Palm Beach County Restores HUD Funding for LGBTQ+ Center After Anti-DEI Law Dispute
5/5/2026, 2:31:48 AM
The Funding Decision and Its Reversal
In April 2026 Palm Beach County Deputy Housing and Economic Development Director Carlos Serrano denied Lake Worth Beach’s request for more than $300,000 in HUD grant money to repair the roof, air-conditioning system, and elevator of the building that houses Compass Community Center, an LGBTQ+ nonprofit. County Administrator Joe Abruzzo reversed the denial on Friday after city officials and community leaders protested, restoring the grant and allowing repairs to begin.
Legal Context
Deputy Director Serrano cited Florida Senate Bill 1134, signed by Governor Ron DeSantis in April 2026, which bars local use of taxpayer dollars for DEI initiatives. Although the law takes effect in 2027, officials applied it to the repair request.
Timeline
April 24, 2026 – Serrano emails public works director Jamie Brown, invoking S.B. 1134 to block the HUD grant. Weeks later – city officials and Compass protest, sparking backlash. Friday, May 2026 – Administrator Abruzzo reverses the decision and restores funding.
Funding Request
The HUD application sought more than $300,000 to replace a leaking roof, upgrade air-conditioning, and repair an elevator to meet safety and accessibility standards.
Official Responses
County Administrator Joe Abruzzo said the reversal “breaks no laws,” stressing compliance with the statute. Commissioner Sarah Malega called the original denial “appalling, but not shocked,” arguing tenant identity should not affect building maintenance. Compass noted the law does not take effect until 2027.
Criticism & Opposition
Lake Worth officials said the law’s application misread its intent, asserting “it shouldn’t matter who our tenant is in a building. It’s a city-owned building.” Compass called the denial “a gut punch,” warning the statute could jeopardize essential services for LGBTQ+ residents.
Conflicting Interpretations & Gaps
Sources differ on whether a law effective in 2027 can be applied to a 2026 infrastructure request. The grant’s purpose—building repairs, not DEI programming—remains contested, and no alternative financing details were provided.
Why It Matters
The dispute highlights tension between state anti-DEI legislation and local efforts to maintain services for LGBTQ+ communities, potentially shaping future municipal funding decisions.
Verbatim Quotes
- “It shouldn’t matter who our tenant is in a building. It’s a city-owned building,” — Sarah Malega, Lake Worth Beach Commissioner
- “appalled, but not shocked” — Sarah Malega, Lake Worth Beach Commissioner
- “a gut punch.” — Julie Seaver, Executive Director, Compass Community Center
- “I’m very comfortable reversing the decision and putting [the grant request] back on schedule, because approving the money this year would break no laws,” — Joe Abruzzo, Palm Beach County Administrator
What's Next
Lake Worth commissioners will explore city-funded repair options before S.B. 1134 takes effect, while observers monitor the law’s impact on future municipal projects.
