On the heels of President Biden's address to Congress, LISC’s Matt Josephs takes a closer look at the president’s plans to build up the nation’s social and economic infrastructure, with an eye toward fueling an inclusive, broadly shared prosperity that will deliver dividends for American families and communities, long into the future.
It may not have been a formal State of the Union address, but President Biden’s remarks to Congress last night nonetheless had the same tone of agenda-setting and consensus-building that an annual address might offer.
For LISC and other community-based organizations that focus on equitable economic opportunity, it reflected a range of encouraging policies, from desperately needed pandemic relief to new efforts to end childhood poverty to policies that reduce violence and improve community safety.
At the heart of his remarks were the American Jobs Plan, which the president has called a once-in-a-generation investment in America, and the American Families Plan, which would provide critical supports to individuals and families through investments in childcare, education and income supports. Taken together, they offer an ability to foster inclusive economic recovery and growth. And, notably, they put forth a real-world view of infrastructure—recognizing that housing, schools, health care, broadband and jobs are as fundamental to the nation’s well-being as roads, rails, bridges and power grids.
“We have a giant opportunity to bend to the arc of the moral universe toward justice, real justice,” Biden said. “We have a real chance to root out systemic racism that plagues American life in many other ways, a chance to deliver real equity.”
LISC couldn’t agree more. New infrastructure investments and supports for families will both respond to 21st century challenges and address long-standing gaps in health, wealth and opportunity that limit the prospects for millions of people, especially people of color. In LISC’s recently released Policy Priorities for 2021-2022, we offer a number of proposals to help close the racial equity gap, including many of the opportunities the president outlined last night.
The pandemic has heightened the urgency around these issues and highlighted why they are so important. The COVID-19 pandemic exposed a long-standing need for reliable and affordable home broadband internet connection, an appropriate device, and the skills to use them for each and every individual and family in this country. LISC understands that access to affordable broadband services and enhanced digital skills expands the health, wealth, and educational opportunities of families across the nation. Yet, up to 42 million people in the U.S. still lack access to these services, with a disproportionate impact on those within historically marginalized communities.
The president has also rightly pointed to housing as a fundamental part of infrastructure. The reasoning is clear: there is no state in the country, not one, that has enough affordable housing for its residents, and municipal leaders have recognized that gap as a drag on their economies. The pandemic has deepened those worries, as families who have had income loss fear they could eventually lose their homes, having few alternatives if that happens.
The president’s $213 billion commitment to affordable housing takes on our housing crisis by leveraging what we already know works—tax credits, formula funding, grants and rental assistance. It includes direct investments that will help build, renovate and retrofit housing, as well as incentives to promote fair housing, so that people have the chance to live closer to job centers and good schools.
We are particularly pleased that the president has called for the enactment of the Neighborhood Homes Investment Act (NHIA), which will help 500,000 families, including many first time and minority homeowners, buy or repair their homes. It reflects a larger truth, that housing investments are as much about multi-generational wealth-building as they are streetscapes, materials manufacturing and construction trades. If enacted, NHIA should help narrow housing gaps based on race, class and zip code, which have affected millions of families.
The president’s remarks on child care also directly connect to economic opportunity and inclusion, particularly the proposed $25 billion for investments in child care facilities, which are vital for working families and thriving businesses. They also contribute to racial and gender equality. The majority of child care center owners and workers are women of color, and it’s largely women who see their careers disrupted when childcare is unaffordable or unavailable. By shoring up child care, we narrow those gaps and support economic growth.
This drive toward a more inclusive, more robust economy was a common thread running throughout the president’s remarks, especially with regard to jobs. We whole-heartedly agree that a four-year college degree should not be the only ticket to economic opportunity in America. By ensuring people can access a range of technical, trade and workplace skills, lawmakers can lay a strong foundation for growth in the years to come.
We speak from experience on this. LISC’s Financial Opportunity Centers and Bridges to Career Opportunity programs—which worked with more than 25,000 individuals last year in partnership with more than 110 community organizations—help people build the skills they need to take advantage of quality jobs in growth industries. This kind of integrated coaching, education and training is a clear pathway toward financial stability, and we are grateful that the president has prioritized this kind of work in his plans. LISC recently called for increased federal investments in financial coaching as a critical complement to workforce development and wealth building initiatives.
All of that barely scratches the surface of the administration’s sweeping plans, or LISC’s for that matter. We are eager to work with lawmakers on efforts to engage community residents in activities that help curb violence, building on the long-standing work of LISC’s community safety team. We likewise remain focused on small business relief and recovery with a focus on businesses owned by women and people of color. We continue to work with federal agencies as well as private funders to help entrepreneurs build back for the future.
Here is the bottom line of all this work: investments in the physical, social and economic infrastructure of our communities pay long-term dividends and help our economy work well for everyone, just as better access to education, childcare, healthcare and homeownership opportunities will increase family well-being, so they can build their incomes and wealth. That isn’t just a theory. It’s backed by decades of experience at LISC.
Infrastructure, as the president has defined it, is the foundation for opportunity, equity and growth in urban and rural communities. The American Jobs Plan and the American Families Plan are down payments on that hopeful future.
Matt Josephs, Senior Vice President, LISC Policy
Matt manages the team that is responsible for developing LISC’s federal policy agenda; communicating this agenda to LISC employees, board members, funders and other stakeholders; and pursuing this agenda through engagement with members of Congress and other federal officials.
@LISC_policy