Matt Josephs, LISC senior vice president for policy, offers his take on the president's State of the Union address and how it connects to key efforts to expand economic opportunity throughout the country. “Whether we are investing in affordable housing, child care centers, recreational facilities or small businesses, the idea of breaking down barriers to opportunity is a constant.”
In many ways, what was most striking about last night’s State of the Union address wasn’t the policy particulars mentioned or even the theatrics of the night. It was the strong statement of civic and economic values that directly connect to the well-being of families and communities.
For those of us in the community development sector, I think that’s worth noting. Oftentimes, we listen to this annual speech with an ear for specific legislation related to affordable housing or economic development or health. Though he certainly touched on those areas, President Biden was most passionate about the principles that underpin key policy priorities, reinforcing the idea that fairness is a baseline for economic opportunity.
The president posited that “investing in places and people that have been forgotten” is a strategy for global competitiveness and growth, and further noted that “amid the economic upheaval of the past four decades, too many people have been left behind or treated like they’re invisible.” These statements reflect the ethos of community development. Whether we are investing in affordable housing, child care centers, recreational facilities or small businesses, the idea of breaking down barriers to opportunity is a constant.
So, when the president talked about the dignity of work, I thought about LISC’s network of Financial Opportunity Centers (FOCs) as they prepare people for career paths in growth industries, helping meet the needs of both employers and employees in the process; and how the work of our FOCs can be enhanced through more investments in workforce development programs targeting the hardest to employ populations.
Similarly, when he made a commitment to ensuring working parents have access to affordable child care, I thought about the work LISC is doing to finance child care and early learning facilities, and how there are still no dedicated, stand-alone federal resources to support the acquisition, construction, or renovation of child care spaces. We need this, as well as more focused initiatives to facilitate financial support and technical assistance for child care providers, who struggle to be recognized as small business micro-enterprises.
When he spoke about how all community members deserve to have safe interactions with law enforcement, and how we must all work together to address violence in our communities, I thought about LISC’s safety & justice work. We have been deepening collaborations with the Department of Justice and communities to successfully implement programs supported by the new federal Community Violence Intervention and Prevention Initiatives funding, and also collaborating with our lending and investment programs to finance community facilities focused on youth services, jobs and health care, including mental health services.
When he spoke about housing challenges for veterans, I thought of the proven value of permanent supportive housing and the way investments in community-based health services make it easier for veterans and others to get the support they need. “No one in America should be homeless,” the president said, “especially if they have served the country.”
Homelessness is only one part of our national housing challenges, of course, as every state in the country struggles with affordability issues that have been exacerbated by the pandemic. We stand ready to answer the president’s call last night “to get more families access to affordable and quality housing.”
In this new Congress, we hope to finally advance the Affordable Housing Credit Improvement Act, which would strengthen the Low Income Housing Tax Credit and lead to the production of millions of more units of affordable rental housing. We also will be pressing for enactment of the Neighborhood Homes Investment Act (NHIA), which would spur the production of 500,000 new single family homes for purchase by low-moderate income families and first time homebuyers. Both of these proposals have strong bi-partisan support and connect directly to the well-being of families and communities.
We are also focused on regulatory implementation, as measures included in the recently enacted Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA) can have a significant impact in our communities.
Look at climate and energy efficiency, for instance. The IRA outlined $60 billion for environmental justice, including the Greenhouse Gas Reduction Fund at the Environmental Protection Agency to help CDFIs and others invest in projects that reduce greenhouse gas emissions in distressed communities, where environmental hazards disproportionately impact residents. Similarly, the Green and Resilient Retrofit program at the Department of Housing and Urban Development will make federally assisted housing more resilient and healthier for residents as they are undergoing critically needed retrofits, while also extending the availability of this housing stock for low-income families.
As the president noted, “The climate crisis doesn’t care if your state is red or blue. It is an existential threat. We have an obligation to our children and grandchildren to confront it.” This is a clear priority for LISC as well.
We are also deepening our work on digital equity, focusing on bridging broadband gaps that constrain opportunity in low-income, rural and communities of color. The IIJA provided more than $64 billion in funding to support broadband access to help connect small businesses and families who otherwise might be left without affordable internet. “No parent should have to drive to a McDonald’s parking lot so their kid can do their homework online,” the president said. Neither should entrepreneurs trying to build their businesses. LISC is particularly interested in the roll out of $2.75 billion provided to the National Telecommunications and Information Agency to support digital equity initiatives.
Lastly, we are eager to see how the IRA’s permanent authorization of the Minority Business Development Agency will help close the historical capital gaps that limit growth for businesses owned by people of color. Addressing those disparities has been a critical issue for LISC and our partners, including our $1 billion Project 10X initiative focused on racial equity.
These are all investments in the “story of progress and resilience” the president referenced last night. More pointedly, for us, they directly fuel transformative strategies that give families and communities a better chance to thrive.
LISC will soon be releasing its bipartisan policy agenda for the next two years. We look forward to working with the White House, Congress, community organizations, business leaders, philanthropy and local officials to move these bold initiatives forward.
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