REVELATION: Greensboro Accused of Busing Unhoused Individuals Out of City Using Taxpayer Funds via DGI

GREENSBORO, N.C. — May 30, 2025 — Newly uncovered financial records released on Tuesday, May 20, 2025 by the City of Greensboro reveal that Downtown Greensboro, Inc. (DGI), a nonprofit run by City Councilman Zack Matheny and largely funded by the City of Greensboro and Guilford County, has spent thousands of dollars on Greyhound bus tickets for unhoused individuals, raising allegations of a coordinated effort to remove them from downtown.

Matheny resigned from his city council position in 2015 citing a conflict of interest as he negotiated to become CEO of DGI, but later decided it was ok, and was re-elected to the city council in 2022 while serving as President/CEO of DGI.

The controversy erupted after local activists and journalists obtained DGI’s 2023–2024 financial records, which show $3,214.70 in Greyhound bus ticket purchases under the publicly funded "4115 Downtown Ambassador Program BBB" and Program DMSD" account. The expenses, charged to a DGI city funded credit card, all noting "2045-0 American Express (Zack)", were logged between July 2023 and June 2024, with no clear documentation or purpose.

If DGI’s Ambassador Program offered bus tickets as an alternative to enforcement ordinance banning sitting or sleeping on sidewalks, systematically removes unhoused individuals from public spaces, for any of the 32 instances between July 03, 2023 and June 6, 2024, all charged to Zack's DGI taxpayer funded credit card, the actions could be construed as coercive, particularly if the program lacks documentation showing a legitimate, non-discriminatory purpose for the bus tickets.

The ACLU of North Carolina previously warned Greensboro in 2023 about policies targeting the unhoused.

The bus ticket revelations follow a series of aggressive measures against Greensboro’s unhoused population, including:

Defunding the Interactive Resource Center (IRC), a 24/7 shelter, reducing its hours to 8 AM–3 PM on weekdays.

Banning food distributions in downtown parks.

Installing hostile architecture (e.g., benches designed to prevent sleeping).

Emails obtained by the A&T Register show downtown business owners, including DGI board members, pushing for increased policing of unhoused individuals in Matheny's downtown domain.

DGI, which receives $195,000 in city funds for its "Ambassador Program," is led by Zack Matheny, a City Council member who voted for the anti-homeless ordinance.

The Ambassador Program’s bus ticket spending may be part of this strategy, raising ethical questions about whether DGI is prioritizing downtown aesthetics over human rights. Using taxpayer funds to bus people out of town may not align with the program’s stated goals, potentially constituting embezzlement or fraud if the expenditures knowingly violated the contract, risking termination of city funding or a claw back of misspent funds.

Mayor’s Response Sparks Backlash

When questioned by resident Jason Hicks, Mayor Nancy Vaughan initially claimed the funds were privately raised, inadvertently confirming the existence of the bussing, stating;

"When an unhoused individual in Guilford County cannot access services locally, the nonprofit may offer no-cost transportation." and "the funds used to purchase the bus tickets were raised privately and outside of the city’s contracts".

However, Hicks and local political activist George Hartzman later verified that the expenses were tied to the Business Improvement District (BID) cash account—public money approved by the City Council.

Hartzman fired back;

"If the program was truly private, why were expenses logged under a publicly funded line item?"

Mayor Vaughan acknowledged bus tickets were provided to unhoused individuals, but insisted funds were private, despite ledger entries tying expenses to public accounts (4115/DMSD), meaning unhoused people were transported out of Greensboro using taxpayer linked funds without public disclosure, and the Mayor of Greensboro misled/obstructed the investigation.

Fungibility undermines Nancy's argument. The Mayor’s ‘private funds’ claim is mathematically impossible to prove while the DGI ledger shows public money was used.

Hicks wrote "Upon further review, your claim that the Greyhound bus ticket expenses were privately funded appears to be inaccurate. The 2023–2024 ledger from Downtown Greensboro, Incorporated (DGI) lists these charges under the BID cash account — which is publicly funded through the City of Greensboro."

Hartzman has asked the City and DGI to produce the private donation records, expense reports and communications explicitly calling for and paying for busing vagrants out of town.

The City nor DGI have yet to comment after the Mayor's erroneous confessional confirmation.

Legal and Ethical Concerns;

Critics argue the bus tickets appear to have been used to pressure unhoused individuals into leaving Greensboro.

Greensboro’s Dec. 3, 2024, ordinance banning sitting, lying, or sleeping in public spaces, was passed unanimously by the City Council, including Zack Matheny.

DGI played a significant lobbying role in pressuring the City Council to pass the anti-houseless ordinances.

DGI gave grants to The Forge, a non-profit created by DGI board member Andy Zimmerman. The Forge's Tiffany Jacobs sits on DGI's board with Zimmerman, and both sit on the board of The Forge.

During the December 3 city council meeting, Zimmerman and a Forge representative thanked the city council for passing the bans and spoke on how positive an effect these bans will have on local businesses. Zimmerman made a point to give special thanks to Mayor Nancy Vaughn, former member of the Board of Directors for DGI, for proposing the ordinance.

Legal experts warn the Ambassador Program's bussing could violate;

False Imprisonment or Kidnapping (N.C.G.S. § 14-43.3): If unhoused individuals are transported against their will; e.g., under threat of arrest or without informed consent, could constitute false imprisonment or, in extreme cases, kidnapping. If ambassadors pressured individuals to leave town without ensuring they had a safe destination and didn't follow up, this could be legally actionable.

Misuse of Public Funds (N.C.G.S. § 14-90): DGI received $195,000 for the Ambassador Program to provide hospitality, social service outreach, and public assistance, which Zack Matheny voted for as a City Council member, after which DGI received the money, after which Matheny spent some of the questionably utilized taxpayer monies on bussing out the unwanted.

As both DGI CEO and Council member, Matheny voted to fund the program, oversaw its implementation and personally authorized and paid for the disputed expenses.

"When you vote to fund a program, then run the organization spending those funds, the ethical lines disappear," said Hartzman. "This isn't just poor oversight, it's potential malfeasance."

While cities can regulate public spaces, bussing people out of town against their will or under coercive circumstances (e.g., threatening arrest under Greensboro’s new anti-homeless ordinances) could violate their due process rights. For example, if DGI’s Ambassador Program offered bus tickets as an alternative to enforcement of the Dec. 3, 2024, ordinance banning sitting or sleeping on sidewalks, this could be construed as coercive.

Targeting unhoused people as a group for removal could be seen as discriminatory, especially if the policy disproportionately affects a protected class (e.g., based on race or disability, as many unhoused individuals have mental health issues).

If the Ambassador Program systematically removes unhoused individuals from public spaces, it could be challenged as discriminatory, particularly if the program lacks documentation showing a legitimate, non-discriminatory purpose for the bus tickets and follow up safety checks.

According to data released by Partners Ending Homelessness, over half of those considered unsheltered in Greensboro identify as African American. People who identify as white make up about 20% of those unsheltered in Greensboro, and all other ethnic groups make up about 10%.

If DGI cannot show that these expenditures were part of a legitimate social service effort (e.g., reuniting someone with family), it risks reinforcing the narrative of displacement.

If bussing leads to harm; e.g., an unhoused person is sent to an unsafe location and suffers injury or death, DGI and the city could face tort claims for negligence or intentional infliction of emotional distress.

City Council’s Silence

No one at DGI including Matheny responded to requests for comment. Mayor Vaughan has not addressed the discrepancies in her initial statement. Calls for comment from the City and Guilford County, which also funds DGI, have gone unanswered.

As the controversy grows, the human cost of displacing vulnerable residents with taxpayer monies needs to be thoroughly investigated.

Hartzman and other activists are now demanding:

Full transparency on how bus ticket funds were used.

Proof that recipients consented to relocation.

Documentation of following up with those transported elsewhere.

An independent audit of DGI’s spending.

Previously;

EXCLUSIVE: DGI Scandal Deepens; FY23-24 Records Just "Tip of the Iceberg," Investigators Say

https://x.com/antzmrah/status/1928116128708186493

"DGI Board Members Face Mounting Pressure to Recuse Themselves or Resign Amid Deepening Compliance Investigation involving Greensboro's City Council"

https://georgehartzman.substack.com/p/dgi-board-members-face-mounting-pressure