Senate Minority Leader Charles Schumer (D-NY) recently unveiled The Economic Justice Act, a proposal to invest $350 billion in communities of color as a component of the next federal COVID-19 stimulus relief package. Through ten new initiatives identified as immediate or long-term investments, the bill aims to address systemic racism and historic underinvestment in communities of color by providing $215 billion for infrastructure, housing and Medicaid expansion, among other important sectors. Along with helping to build long-lasting wealth and health over the next five years in Black and brown communities, The Economic Justice Act addresses the impact of COVID-19 on minority groups by providing $135 billion for jobs, childcare, mental health and primary care. The proposal includes creating a new homeowner down payment tax credit with historically low interest rates for home mortgages, providing $15,000 per family to expand access to homeownership in communities of color.
The Economic Justice Act would also expand LIHTC by $5 billion over five years. In addition, it would provide a renter tax credit that would reduce rent and utilities for low-income individuals and families. The bill would also invest $115 billion as a “Down Payment on Building 21st Century Infrastructure,” including investments in high-speed internet, affordable housing, community development, K-12 public schools and environmental justice. The Economic Justice Act would be funded partially by re-programming $200 billion of unspent funds from the CARES Act that were previously provided to the Department of Treasury.
