As a beacon of leadership, the U.S. Department of the Treasury has taken a monumental stride in advocating for economic fairness. Commemorating the Juneteenth holiday, the Treasury Department outlined its initiatives to level the economic playing field for historically marginalized communities, with a focus on Black Americans.
When the current administration took office over two years ago, the United States was in the grip of the COVID-19 pandemic. The consequences, both in health and economic terms, were severe. It became increasingly evident that Black Americans were disproportionately affected. Recognizing the need for an equitable recovery, the Treasury Department has since worked tirelessly to create programs that directly address and benefit the underserved communities.
Homeowner Assistance Fund (HAF)
This initiative aims to ensure that vulnerable homeowners, who are traditionally underserved, can sustain homeownership. As of December 2022, 57% of the assistance through HAF has been provided to very low-income homeowners, of which 35% self-identified as Black.
ERA is the first-ever nationwide program dedicated to preventing evictions by providing direct assistance to renters. Remarkably, nearly two-thirds of ERA assistance went to extremely low-income renters, with Black families receiving 42% of the assistance.
To bolster Black-owned businesses, SSBCI has been allotted $2.5 billion in funding and incentive allocations to provide capital to underserved businesses. Moreover, there is an emphasis on transparency and accountability, with demographic data on business owners, including race and ethnicity, being collected.
Through ECIP, the Treasury Department has invested $1.4 billion in Black-owned and Black-majority shareholder depository institutions. This investment is projected to increase lending in Black communities by almost $80 billion in the next decade.
In April, the CDFI Fund prioritized community investments, announcing $1.73 billion of grant awards through the Equitable Recovery Program. These awards went to community development financial institutions with a strong history of lending to Black borrowers.
The Treasury Department emphasized equity in the spending guidelines for the American Rescue Plan’s State and Local Fiscal Recovery Fund. Many local governments have used these resources for projects addressing systemic health and economic challenges affecting Black and low-income communities.
Over the past two years, contracts awarded by the Treasury to Black-owned businesses have increased by 60%. In Fiscal Year 2022, the Treasury awarded Black-owned businesses $188 million, an increase of about $75 million from FY 2020.
While progress has been made, the Treasury Department acknowledges the work ahead. It is committed to continuing efforts, such as implementing key provisions of the Inflation Reduction Act, which aims to create jobs and ensure that all Americans benefit from clean energy economic growth. This illustrates the Department’s unwavering commitment to equity and racial justice as fundamental pillars in rebuilding the American economy.
The Treasury Department’s data-driven approach to dismantling economic barriers reflects its dedication to building an inclusive economy. Through innovative programs and funding, it is actively fostering an environment that unleashes the economic potential of all Americans, particularly those in historically marginalized communities. This lays the groundwork for a future where prosperity is shared more equitably.
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