White House Racial Wealth Gap Efforts

On Apr. 12, White House reported on efforts to close racial wealth gap.

  • White House provided a fact sheet on Biden's efforts to close racial wealth gaps.
  • Follows fact sheet on new actions to build black wealth and narrow gap, see #106912.
  • Progress on home appraisal bias, disadvantage businesses investments, student debt.
  • Noted that 80% of Congressional Republicans are supporting a plan that would reverse this progress, while cutting Medicare, Social Security, and the Affordable care act.
  • Appraisal Bias
  • Reported appraisal gap, likelihood that homes in communities of color are undervalued compared to homes in majority-white communities, has been cut by more than 40%.
  • Created Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) to root out bias and advance equity in process; made progress on action plan, #133144.
  • Made critical progress towards implementation, including major steps to empower consumers to take action against appraisal bias, prevent algorithmic bias in valuation.
  • Additionally, support a well-trained and more representative appraiser profession.
  • Small Disadvantaged Businesses
  • In 2023, agencies surpassed Biden’s goal for federal contracting dollars going to small disadvantaged businesses (SDBs), awarding $76.2bn, or 12.1% in federal contracts.
  • Sets a new all-time record for federal dollars to SDBs, surpassing last set record.
  • Illustrates continued progress towards the President’s goal of 15% to SDBs by 2025.
  • According to analysis, eliminating racial disparities in business ownership rates would narrow the wealth gap by an additional 22% between Black and white households.
  • Further, it reduced by an additional 17% between Latino and white households.
  • Student Loan Debt
  • Canceled an additional $7.4 billion in student loan debt for 277k borrowers, #207695.
  • Brings the total amount of debt relief approved by the Administration to $153bn.
  • Builds on plans to cancel student debt for tens of millions of Americans, if implemented
  • Plans help create financial stability for millions of working and middle-class families.
  • Address disproportionate debt burden on communities of color, advance racial equity.
  • Bidenomics Progress
  • Black unemployment and gap between Black and White unemployment hit record lows
  • Fact sheet noted that Black wealth is up 60% relative to pre-pandemic levels.
  • The share of Black business owners more than doubled between 2019 and 2022.
  • Further, Black-owned businesses are being created at the fastest rate in 30 years.

Regulators White House
Entity Types Bank; Corp; MG Orig
Reference PR, 4/12/2024; ESG;
Functions Compliance; Financial; Legal; Operations; Social; Treasury
Countries United States of America
Category Central Government
Products Banking; Corporate; Mortgage
Regions Am
Rule Type Guidance
Rule Date 4/12/2024
Effective Date 4/12/2024
Rule Id 208431
Linked to Rule :106912
Reg. Last Update 4/12/2024
Report Section US Investment

Last substantive update on 04/17/2024