Press Release: McDuffie Secures Baby Bonds and Funding to Reduce Racial Wealth Gap, Facilitate an Equitable Recovery and Reimagine Public Safety in Budget
News Release — Ward 5 DC Council member Kenyan McDuffie
For Release: Tuesday, August 3, 2021
Contact: Malcom Fox
Washington, DC – Today, the DC Council unanimously passed the FY22 Local Budget Act (LBA), which funds many of Councilmember McDuffie’s legislative priorities that address structural inequities concerning economic opportunity, public safety, and amenities for Ward 5 residents. The FY22 budget funds Councilmember McDuffie’s landmark Child Wealth Building Act ($32M), a second round of significant financial relief for workers and small businesses ($88M), financial assistance for excluded workers ($41M), a new Amazon-UDC partnership for degrees in cloud-based computing services ($9.8M), a new Commercial Acquisition Fund ($4M), and a new Career Pathways Program East of the River for high-growth sectors careers ($2M), all transformational measures that contribute to an equitable recovery for District residents. The budget also includes funding to expand public safety programs created under the NEAR Act, build a new community and recreation center at the historic Crummell School ($20M) and create a new library to serve the Eckington and Edgewood communities ($24.5M), among other important investments.
“This budget funds measures that break down structural barriers and further racial equity in the District, said Councilmember McDuffie. “The Child Wealth Building Act, Commercial Acquisition Fund, and guaranteed basic income all facilitate a more inclusive recovery that will not simply be a return to normal, but make lasting economic opportunities more accessible for all District residents. Critically, this budget provides additional financial relief for workers and small businesses most impacted by this pandemic as well as multiple Ward 5 priorities such as the new community center in Ivy City and a new library in Eckington.”
The Child Wealth Building Act (‘baby bonds’) is a transformational measure that would provide a District government-sponsored trust fund for babies born into a District household whose income does not exceed 300% of the Federal Poverty Level. Upon turning 18, an enrollee can spend trust fund dollars to pursue an education, buy property, start a business or invest towards retirement. This legislation seeks to address the legacy of institutional racism that has prevented Black Americans from accessing wealth building opportunities and passing down wealth over generations.
Councilmember McDuffie’s new $4M Commercial Acquisition Fund helps socially disadvantaged small business owners purchase their real estate, addressing longstanding access to capital challenges and helping combat commercial displacement across the city. He also secured grant funding for community development financial institutions (CDFI) and minority deposit institutions (MDI) that provide critical access to capital to entrepreneurs of color. Supporting minority-owned businesses in these ways helps to chip away at the District’s racial wealth gap, increases employment opportunities for Black and Brown residents who experience a 12.6% unemployment rate in the District, and reduces commercial gentrification.
Councilmember McDuffie continues to champion workers and small businesses most impacted by the pandemic. This year’s LBA includes $88M for a second round of bridge fund grants to support workers and businesses including hotels, restaurants, retailers, entertainment venues, and the arts. This additional funding builds upon Councilmember McDuffie’s previous measures to support impacted industries such as $100M for the first round of Bridge Fund grants, his Small Business Recovery Microgrant Program that paid out over $30M to 6,481 DC small businesses, and his Equity Impact Fund that provides financial support to socially disadvantaged entrepreneurs impacted during the pandemic who often struggle to access traditional financial support vehicles.
The FY22 budget significantly increases funding for many public safety programs created in Councilmember McDuffie’s Neighborhood Engagement Achieves Results (NEAR) Act to address the gun violence epidemic. The budget expands violence interruption programs, increases cohort sizes for the ONSE Pathways Programs and provides additional funding for trauma-informed behavioral health services. The budget also funds a new transitional housing program for returning citizens and significantly expands mental health resources for District students. These initiatives, coupled with Councilmember McDuffie’s measures to expand economic opportunities, address the root causes of crime and will make communities safer.
The FY22 LBA also funds a significant number of Ward 5 constituent priorities. Notably, the budget includes $20M for a new community and recreation center at the historic Crummell School, something Councilmember McDuffie, Ivy City residents, and community stakeholders have long asked for, as well as $250,000 for an Ivy City Small Area Plan. There is an additional $19M to renovate the Harry Thomas Recreation Center and $24.5M to build a new library in the Eckington/Edgewood/Stronghold neighborhoods. The LBA includes recurring funding to establish new Ward 5 Roving and Eckington Clean Teams. There is also $1M to fund a North Capitol Deck Over feasibility study connecting the Bloomingdale and Eckington communities.
###
Comments are closed.