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WORKFORCE

Building the Bridge: Workforce Development as the Path to an Equitable Future Congressman Steven Horsford

most. An equitable future demands that we dismantle and reimagine those structures, deliberately and urgently.

I grew up on the Historic Westside of Las Vegas, a community shaped by resilience, by creativity, and by the quiet determination of people who work hard every day for a future they could not always see. My mother immigrated to this country with little more than that same determination. What I witnessed in my household, and in the households around me, was not a lack of ambition. It was a lack of access. The difference between those who made it and those who were left behind was rarely talent or drive. Instead, it was opportunity and a clear difference in what communities were and were not given the tools to seize it. That understanding and the community I come from has shaped everything I have done in public life. Before I ever cast a vote on the House floor, I spent more than a decade as CEO of the Culinary Training Academy, Nevada’s largest job training program. Every day, I watched workers, many of them Black and brown, many of them immigrants, many of them single parents, walk through our doors not asking for a handout, but asking for a chance. Through our partnership between labor and industry, we placed more than 80 percent of our graduates into good-paying careers in the hospitality industry. That experience taught me something that no policy brief ever could: workforce development can be transformational in our communities. As we mark fifty years of the Congressional Black Caucus Foundation, I am proud to reflect on the progress we have made and to be honest about the distance we still must travel. Black workers in America remain disproportionately underrepresented in the high-wage, highgrowth sectors that are shaping the economy of tomorrow. The gap is the direct product of decades of underinvestment in minority communities, discriminatory credentialing systems, and a workforce infrastructure that too often rewards those who already have the

In Congress, I have fought to make that vision concrete. I have championed the Jumpstart Our Businesses by Supporting Students (JOBS) Act, which would expand Pell Grant eligibility to cover highquality, short-term job training programs, because the credential pathways of the twentieth century were not designed with the twenty-first century economy in mind. A worker who completes a rigorous six-month program in advanced manufacturing, health information technology, or clean energy should not be penalized for choosing a path that fits their life. I have also worked to bring these investments home. I secured nearly $7 million to build the Westside Education and Training Center in Las Vegas in the community where I was born and raised. That facility will train Nevadans for careers in manufacturing, welding, and technology. It will create hundreds of construction jobs in its building and thousands of career pathways once it opens this October. For me, that is a personal highlight. When completed, the Training Center will be a reminder that the zip code you are born into does not have to determine the trajectory of your life. We are also living through a moment of profound technological disruption. Artificial intelligence, automation, and the green energy transition are rewriting entire sectors of the economy at a pace that our workforce systems were not built to match. The communities most at risk of being left behind are the same communities that have always been most at risk: Black workers, workers without four-year degrees, workers in industries facing rapid change. This is not a time for incremental tweaks. It is a time for bold, targeted investment in re-skilling and upskilling, with an explicit commitment to equity baked into every program design and every dollar spent.

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An equitable workforce future means that a young Black woman on the Historic Westside of Las Vegas can graduate from a certificate program in cybersecurity and walk into a career that pays a living wage without drowning in debt. It means that a hospitality worker displaced by automation has a clear, supported pathway to a new career, not a cliff. It means that the communities who built this country’s economy with their hands and their labor are not spectators to its next chapter, but architects of it. The Congressional Black Caucus Foundation has spent fifty years pushing this nation toward that vision by documenting the gaps, amplifying the voices that power too often ignores, and building the intellectual and policy infrastructure to close them. That work has never been more urgent. I am honored to be part of this mission, and I am committed to fighting every day to ensure that the economy of the future belongs to all of us, not just to those who were already at the front of the line.

the communities who built this country’s economy with their hands and their labor are not spectators to its next chapter, but architects of it.

Congressman Steven Horsford is a leader focused on advancing economic opportunity and supporting working families in Nevada’s Fourth District. In the 119th Congress, he prioritizes economic recovery, public trust, and community safety. A former State Senate Majority Leader—the first African American in Nevada’s history—he championed clean energy and bipartisan solutions during the recession. Horsford previously led the Culinary Training Academy, expanding workforce pathways for thousands. His policy work addresses gun violence prevention, education equity, and family stability. A Las Vegas native, he brings experience in public service, workforce development, and community-based innovation.

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The Push Back to the Past: Eroding the Black Middle Class Jocelyn Frye My parents were born into a segregated America, raised during an era when their opportunities and day-to-day experiences were determined by the color line and the indelible imprint of entrenched racism cemented into law and practice. They saw firsthand how the nation’s stated ideals were little more than an empty promise for Black Americans, who were shut out of opportunities and treated like second-class citizens. Yet they, like millions of other Black Americans, worked to build a stable life as the walls of segregation slowly began to come down. They sought out work in the federal government because, in the 1950s, that’s where opportunities for better-paying, steady jobs were beginning to open up, thanks in part to executive orders that aimed to desegregate the federal workforce even as the private sector remained hostile and inaccessible to Black workers. The legal framework for desegregation laid the foundation for a middleclass life: my parents found steady jobs at agencies where they would work for over 30 years. They married. They bought a home. They raised a family, all while making sure that I—their one and only daughter—had access to opportunities that would never have been available to them and could set me up for an even better future. The pathway taken by my parents and so many other Black workers depended on being able to access jobs and careers of their choosing. Workplaces that were open to all and free of discrimination, thus, were a necessity to the fight for civil rights. The Civil Rights Act of 1964—passed amid a fervent push to unravel the country’s deep legacy of slavery, segregation, and racism and advance equal opportunity—enshrined comprehensive protections against discrimination in U.S. law, some for the first time. Title VII of the Act prohibited discrimination in employment based on race, color, sex, religion, and national origin, and it established the Equal Employment Opportunity Commission (EEOC) which opened one year after the

Act’s passage to receive complaints and enforce the law, recognizing that the sweeping protections against discrimination were only as strong as the government’s ability to enforce them. In an effort to take other proactive steps to disrupt discrimination, the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) was also established in 1965 to monitor and assess compliance with anti-discrimination rules by federal contractors. Under this backdrop, Black Americans saw important progress. Black workers were able to break through barriers that had previously kept them out of certain fields and jobs. For example, Black women too often had been limited to low-wage domestic and care worker roles, but greater civil rights protections led to more opportunities in different, better-paying roles and more opportunities to move up the career ladder. Progress has been crucial but race and sex-based employment discrimination are still stubbornly prevalent, making clear that having robust legal protections is only one component in remedying workplace discrimination. Vigorous enforcement and changes in attitudes about the abilities and qualifications of Black workers are essential but they do not occur overnight—they require intentional, targeted effort. The Trump Administration has made clear that it views the efforts to improve opportunities for Black people as inherently discriminatory and unfair to white people. It has sought to propel a narrative that casts Black Americans as undeserving beneficiaries of misguided government programs, and frames any progress made by Black people as a threat to fairness, effectively relegating them to the economic margins. It has also denigrated Black people and communities, including by attacking prominent and successful Black women to question their competence, legitimacy, and integrity.

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In its first year, the Administration sought to downplay the existence of discrimination, ending programs that have helped document disparities, rewriting and whitewashing history to minimize past problems, and redefining the corrective measures used to combat discrimination historically as being the cause of the problem. They have closed or significantly reduced offices charged with civil rights enforcement, and rescinded longstanding anti-discrimination rules and orders. They have sought to weaponize the phrase “Diversity, Equity, and Inclusion” to make it synonymous with perceived discrimination against white men, and then hidden behind that term to accomplish their real goal: trashing the hard-won civil rights laws that have been central to both Black women’s economic progress and the growth of a Black middle class. In this moment, it is critical to stay focused squarely on the unfinished work at hand—to continue to combat discrimination and root out workplace bias, and to disrupt old systems that perpetuate inequities and exclude Black workers from opportunities. Economic stability for many Black workers—including my parents—was a direct result of intentional efforts to build the legal framework and enforcement tools needed to create workplaces where all workers could thrive. This work is more important than ever, to advance a vision for workplaces where everyone is treated equally, fairly, and with dignity and respect. Jocelyn Frye is President of the National Partnership for Women & Families—a policymaking and legal advocacy organization that advances civil rights, economic justice, reproductive freedom and affordable, equitable health care. She is the first Black woman to head the National Partnership, which was founded in 1971. Previously, Jocelyn helped spearhead the Women’s Initiative at the Center for American Progress. She also served in the White House during the Obama administration as Deputy Assistant to the President and Director of Policy and Special Projects for the First Lady. She is a graduate of Harvard Law School and the University o

They have sought to weaponize the phrase “Diversity, Equity, and Inclusion” to make it synonymous with perceived discrimination against white men.

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The Drum Major Moment: Why AI Literacy Is the Next Chapter in the Civil Rights Movement John Hope Bryant For most of American history, the greatest threat to opportunity was exclusion. It shaped who could go to school. Who could own land. Who could vote. Who could borrow. Who could build. Progress, especially for Black communities, has often meant fighting to gain access to systems that already existed but were never designed with us in mind. Today, we are facing a different kind of moment. Artificial Intelligence is not fundamentally good or evil. It is simply powerful. And like every powerful tool in history, it will either accelerate opportunity for those prepared to use it, or it will widen the gap for those left behind. The real question is not whether AI will change the economy. It already is. The question is who will be ready to shape it, and who will be forced to live with the consequences of arriving too late. This is not the first time we have seen this pattern. There was a time when the horse and buggy represented the height of technology. It was familiar, reliable, and trusted. Then came the automobile—faster, riskier, and uncertain. Some resisted it out of fear. Others learned to drive. The world quickly reorganized itself around those who adapted. AI is our automobile moment. We can stand in front of it and hope it slows down. Or we can step out front and become the line leaders and drum majors guiding our communities into the future.

also create new ones and secure others for people who learn how to leverage, operate, and build with it. Paired with entrepreneurship, financial literacy, and homeownership, this technological shift puts our communities within real striking distance of long-term economic wins. But this is not happening in isolation. We are in a global competition. While we debate whether AI is something to fear, there is a young person in China, in India, in Africa, in Europe, building the next billiondollar company. And closer to home, there is a neighbor, a church member, a niece or nephew quietly learning these tools and creating something new. The world does not pause while we process change. It moves forward with or without us. And here is the uncomfortable truth: if we allow fear, skepticism, or nostalgia to slow us down, we risk giving someone else a permanent head start on our future. Not because they are smarter. Not because they are more deserving. But because they were willing to learn faster. This is where the Black experience offers a powerful case study for the nation. Historically, Black communities have been forced to adapt. We have had to innovate under pressure, build without capital, and lead without permission. We understand what it means to be late to systems that shape wealth and power, and what it costs when access arrives after the opportunity window has closed. AI represents a rare moment where the window is still open. But only for a short time.

At Operation HOPE, we believe AI is ripe with opportunity, if we lean into it now. AI will replace some jobs. That is unavoidable. But it will

The danger of this technology is not that it will replace only blue-collar

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work. It is already transforming white-collar professions—law, finance, medicine, marketing, engineering. With every new breakthrough, we are reminded that no one is immune. The world is changing for the rich and the poor, Black and white, native and immigrant, employed and unemployed alike.

movements: the long march for civil rights and the fast-moving march of technological transformation. The question is whether we will watch these movements collide, or whether we will help turn them into a single parade, guided by our voices, our experience, and our willingness to engage the future directly.

The question is not whether AI will reshape the economy. The question is whether we will prepare people to reshape themselves.

We cannot afford another moment of digital redlining. Another era where opportunity exists, but only for those who arrived early. Another generation that inherits systems they never helped design. The future will not be built by those who resent success, but by those who learn how to replicate it. Not by those who fear disruption, but by those who organize around it. Not by those who stand in front of progress hoping it stops, but by those willing to lead it somewhere better.

When I was a child, I once heard a banker speak. I asked him what he did for a living. He said, “I finance entrepreneurs.” I did not know exactly what that meant, but I knew this: if you dress like that and you help people build things, that is what I want to do. That moment changed the direction of my life. Exposure creates possibility. AI literacy is exposure at scale. Through initiatives like the AI Literacy and Leadership Program at Georgia State, the HOPE Ethics AI Council (which we co-launched with OpenAI founder Sam Altman, Dr. Bernice King, and others), and our broader HOPE AI efforts announced at the HOPE Global Forums, we are working to ensure communities are not just consumers of technology—but informed participants in shaping it. This is not about turning everyone into an engineer. It is about giving people the language, confidence, and competence to engage the future rather than retreat from it. It is about participation, not spectatorship. Power, not proximity. Financial literacy has long been the civil rights issue of this generation. Today, AI literacy is becoming one of its most critical extensions, not as a defensive measure, but as a pathway to real agency in the economy being built around us.

This is not a time for timidity. It is a time for conscious, strategic engagement. For getting close enough to the tools shaping the future to understand them, challenge them, improve them, and use them for good. It is time to wake up from the dream and make it real through action. The choice, as always, is ours. John Hope Bryant is an American entrepreneur and civic leader often described by Fortune 500 CEOs as the “conscience of capitalism.” He is the founder, chairman, and CEO of Operation HOPE, the nation’s largest on-the-ground provider of financial literacy and economic empowerment, and founder and CEO of Bryant Group Ventures. Bryant helped make financial literacy official U.S. policy under two presidents and inspired the renaming of the Freedman’s Bank Building on the White House campus. A CNBC Contributor, LinkedIn Top 10 Voice, and six-time best-selling author, his latest book is Capitalism for All (2026).

This is a real drum major moment. Not one rooted in arrogance, and not one driven by fear, but one grounded in leadership, responsibility, and participation. We are standing at the intersection of two

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Amplifying Black Perspectives: Spotlight on Workforce To what extent are workforce development programs important for the advancement of Black communities? Three out of four respondents indicated workforce development programs are extremely important for the advancement of Black communities. Moderately important

Unsure

Extremely important

Very important

20%

Moderately important Unsure

Extremely Important

75%

DATA SOURCE: THE CENTER FOR POLICY ANALYSIS AND RESEARCH AMPLIFYING BLACK PERSPECTIVES DATA PROJECT. RESULTS ARE BASED ON ANALYSIS OF AN ONLINE SURVEY OF 187 BLACK-IDENTIFYING INDIVIDUALS CONDUCTED BETWEEN JANUARY 14 – 30, 2026.

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Workforce Policy Landscape Black Americans provided essential labor to build the United States that we live in today. Since the country’s founding, plantation owners forced enslaved Africans to work in brutal conditions, shaping the agricultural landscape of the South from which they accumulated vast wealth. Enslaved people also mined resources and constructed prominent landmarks like the U.S. Capitol and White House, physically building the halls of power from which they were systematically excluded. After the Civil War, in which Black Americans fought to preserve the Union, states ratified the 13th Amendment, ending slavery and involuntary servitude except as punishment for a crime. Despite this landmark victory for civil rights, Black workers were still not guaranteed equal opportunities to participate in the workforce. In the early 20th century, increased industrial investment and labor shortages during World War I created new career opportunities for Black Americans. The promise of jobs, combined with the growth of Jim Crow laws in the South, prompted over one million Black workers to relocate to states in the North and Midwest in what became known as the Great Migration. During this time, Black workers were often hired in racially integrated settings, creating a complicated dynamic within the American labor movement. The leadership of the American Federation of Labor (AFL), a prominent, predominantly white association of trade unions, feared that businesses would hire Black workers — who had been historically excluded from unions-- as strikebreakers, undermining the labor movement’s momentum. Instead of welcoming Black workers into its organization, the AFL advocated for racially segregated workplaces, creating a breeding ground for racial tension during the Great Migration. Between 1917 and 1919, race riots erupted in several major Northern cities, leaving thousands of Black Americans jobless, displaced, and vulnerable to violence. While World War II provided renewed workforce opportunities for Black Americans, it was not until the 1960s that Black Americans received equal opportunity under the law. The Civil Rights Act of 1964 revolutionized Black employment by prohibiting unlawful discrimination

in the workplace and establishing the Equal Employment Opportunity Commission (EEOC) to investigate violations of the law. The legislation did not only pave the way for Black Americans to access higher paying jobs and union membership; it provided a mechanism for economic mobility and recognition for their contributions to the labor market. In compliance with new civil rights laws, both public and private sector entities began employing strategies to integrate and diversify their workplaces. However, since 2025, the Trump Administration has moved to eliminate diversity, equity, and inclusion practices from every aspect of the workforce, firing thousands of federal workers and leaving Black communities behind in the employment sector. Black Americans experienced record-high unemployment in 2025, with reports that over 300,000 Black women were forced out of the workforce between February and August of 2025. Policymakers must play a key role in strengthening the Black workforce for the future.

Despite this landmark victory for civil rights, Black workers were still not guaranteed equal opportunities to participate in the workforce.

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Timeline December 6, 1865 States ratified the 13th Amendment, prohibiting slavery and involuntary servitude in the United States except as punishment for a crime.

December 1886 Samuel Gompers founded the American Federation of Labor, a trade union that did not accept Black members.

Summer 1919 Known as Red Summer, over 60 lynchings and racially motivated attacks occurred in Northern and Midwestern cities over a four-month period.

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June 10, 1963 President John F. Kennedy signed the 1963 Equal Pay Act into law, prohibiting employers for using sex as a basis to justify wages.

July 2, 1964 President Lyndon B. Johnson signed the 1964 Civil Rights Act into law, prohibiting unlawful discrimination in the workplace and establishing the Equal Employment Opportunity Commission (EEOC) to enforce the law.

July 26, 1990 President George H. W. Bush signed the Americans with Disabilities Act into law, prohibiting discrimination against individuals with disabilities in the workplace. May 25, 2007 President George W. Bush signed the Fair Minimum Wage Act of 2007 into law, raising the national minimum wage to $7.25.

February 5, 1993 President Bill Clinton signed the Family Medical Leave Act of 1993 into law, allowing employees to take up to 12 weeks of unpaid leave to attend to personal or familial medical situations.

January 21, 2025 President Donald Trump issued a series of executive actions eliminating diversity, equity, inclusion, and accessibility roles and practices in the federal government.

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The Significance of Federal Employment in Raising Living Standards for Black Workers Dr. Valerie Rawlston Wilson Introduction For Black Americans, public sector employment has historically provided a pathway to better, more equitable, and more secure job opportunities than those in the private sector. The federal government has played an especially vital role in establishing a robust Black middle class in the Washington, DC metro area.1 According to the 2023 American Community Survey, roughly 2 out of 5 Black adults in the DC metro area were college graduates, Black median household income was nearly $90,000, and the Black homeownership rate was 52.8%. Postal service jobs have been particularly valuable to Black workers without college degrees because of the uniform wage and benefit structure (all postal employees with the same job title and job tenure are paid the same nationwide) and higher pay relative to comparable private sector jobs. With a minimum education requirement of a high school diploma, the median hourly wage of a postal worker is 43% higher than that of a typical high school graduate. While federal employment has opened the door to social and economic mobility for generations of Black Americans, it has also been the battleground and a compass for setting higher labor standards and equal employment policies in the United States. Opportunity. Backlash. Resistance. Change: A Brief History of Black Federal Workers The history of Black workers employed by the federal government dates back to the Civil War, when the Treasury Department hired its first Black employee in 1863. In time, the federal government quickly became the largest employer of formerly enslaved people, with large concentrations in the military and the US Postal Service (USPS). By 1912, the federal government was the largest employer of Black Americans in the nation, including highly skilled Black workers who were hired in high-ranking white-collar positions. 2

One of the earliest actions aimed at weakening the position of Black federal workers came shortly after the inauguration of President Woodrow Wilson. In 1913, Wilson racially segregated the USPS and the Treasury Department – the first federal agencies to employ, and in the case of USPS, promote Black workers to management positions.3 The administrative practice of segregating the federal workforce extended to the demotion of Black civil servants from white-collar positions, at-will firings, and refusal to fill open jobs with qualified Black candidates. Later that year, a group of Black workers formed the National Alliance of Postal Employees, the first industrial union in the federal service, to resist the administration’s racist tactics.4 In the 1940s and 1950s, FDR, Truman and Eisenhower each issued executive orders that took measured steps to undo the overtly racist and discriminatory federal employment practices put in place by Wilson. Those orders were largely directed at national defense industries, the armed forces, and government contractors in response to the demands of World War II. But, throughout the 1950s and 1960s, civil rights activists pushed the federal government to do more to expand its hiring of Black workers. In response, President Eisenhower’s Executive Order 10590 established the President’s Committee on Government Employment Policy (PCGEP) in 1955. The PCGEP involved federal agencies more fully in the government’s anti-discrimination agenda and called on departments to develop regulations in line with their missions to end discrimination across all federal employment. However, the group lacked the enforcement power necessary to accomplish that mission. Over the following decades, job prospects for Black federal workers improved most with a series of executive actions and legislation introduced in the 1960s and 1970s. On March 6, 1961, President John F. Kennedy’s Executive Order 10925 required the federal government and federal government contractors to practice non-discrimination

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in their hiring practices. Additionally, E.O. 10925 established the President’s Committee on Equal Employment Opportunity (PCEEO) to monitor non-discrimination on government contracts. In a move that distinguished the PCEEO from prior ineffective, enforcement-lacking efforts like Eisenhower’s PCGEP, Kennedy granted policy-making authority to the group led by Vice President Lyndon Johnson and Secretary of Labor Arthur Goldberg. On January 17, 1962, Kennedy signed Executive Order 10988, which, for the first time, allowed limited collective bargaining for federal employees and opened the door to federal employee union membership under three classifications: informal, formal, and exclusive recognition. Public-sector collective bargaining would play a central role in maintaining the quality and accessibility of federal jobs through labor contracts that fostered transparency with clearly defined policies and pay structures. Labor contracts also served to limit discriminatory outcomes while providing critical protections and recourse against other forms of exploitation or mistreatment. The power of Kennedy’s executive orders was reinforced when Title VII of the historic Civil Rights Act of 1964, signed by President Johnson, formally prohibited employment discrimination in the United States and established the Equal Employment Opportunity Commission (EEOC) to enforce the law. The Equal Employment Opportunity Act of 1972 extended Title VII protections to cover more employers and strengthened the EEOC’s enforcement authority by allowing workers to litigate against employers, including federal agencies that violated Title VII. Within the span of the 1960s and 1970s, the federal government established a clear definition of what it meant to be an equal opportunity employer, leveraged its purchasing power to compel private contractors to meet similar standards, extended collective bargaining rights to federal workers, and assigned the EEOC a central role in enforcing anti-discrimination law. Black federal employees also continued to support and advocate for one another, establishing the nonprofit organization Blacks in Government (BIG) in 1975. The progress made during the 1960s and 1970s would be gradually chipped away in the decades that followed.

Federal Job Losses Since the 1980s During the 1980s, the Reagan administration took a swipe at federal employees, unions, and anti-discrimination enforcement, but that record pales in comparison to more recent developments. While Reagan announced plans to cut federal jobs and, infamously, fired 11,000 striking air traffic controllers in the early 1980s, federal payrolls actually rose by more than 200,000 during his presidency, then dropped by 427,000 during the 1990s and took another hit of 244,000 between 2010 and 2014. Since the 1980s, the postal service, a major employer of Black workers, has been under sustained assault, including attempts to undercut employee compensation and the agency’s solvency. In 2025, the Trump administration took steps to implement massive cuts to the federal sector and to reverse course in the government’s pursuit of equity by rescinding at least a dozen prior executive orders related to racial and/or gender equality and terminating workers in diversity, equity, and inclusion (DEI) departments within federal agencies.5 In a series of legally challenged actions, Trump fired decision makers at the EEOC and National Labor Relations Board (NLRB) – rendering two independent agencies responsible for enforcing workers’ rights non-operational for several months – while his newly created Department of Government Efficiency (DOGE) made severe staff reductions and eliminated entire federal agencies. Trump’s attacks on the federal workforce have also included attempts to limit the approval of collective bargaining agreements. The actions of Trump and DOGE contributed to the loss of 288,000 federal jobs between January and December 2025, according to data from the Bureau of Labor Statistics. Ironically, while federal jobs once provided Black workers relatively more job security, early evidence suggests the burden of federal job cuts has fallen disproportionately on Black women.6 The potential consequences of these actions go beyond job losses and include major implications for Black family incomes and racial and gender pay equity. An Accounting of the Significance of Federal Sector Employment for Black Workers and Families As detailed in the history above, between 1941 and 1981, Black workers gradually improved their employment status in the federal

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government through collective and individual activism by groups such as the National Alliance and Blacks in Government, within a context of official support for their rights through executive orders and landmark civil rights legislation. This improved employment status expanded the ranks of Black federal workers who could secure higher incomes. By 1970, the median household income for Black families was just $6,279 compared to a range of $7,178 - $10,987 for those earning GS 5-8 salaries in the federal government.4 In fact, Black federal employees compensated between grades GS 5-8 were either close to or slightly above the national median of $9,867. This remains a factor today, as the high concentration of federal employment and related professional job opportunities in the Washington, DC metro area helps make metro DC’s Black median household income ($89,912 in 2023) one of the highest in the nation and well above the national median of $77,719.7 Analysis of 2024 state-level data from the Office of Personnel Management (OPM) reveals that over 300,000 federal workers (excluding USPS) reside in the DC metro area, accounting for 60% of all federal workers in the District of Columbia and the surrounding states of Virginia, Maryland, and West Virginia.8 Black workers are just over one-fourth of the federal workforce in the District of Columbia (28.8%), Maryland (27.9%), and Virginia (26%). While the DC metro area is home to the largest concentration of federal workers, over 90% of the federal workforce lives and works outside the nation’s capital. Black workers account for at least one-fifth of the state’s federal workforce in 12 states beyond the DC metro area. Implications of Massive Federal Job Losses and the Unfinished Business of Equity To understand the stakes of federal workforce contraction, it is necessary to compare the demographic and wage structure of federal employment with that of the broader labor market. As shown in Table 1, in 2023 and 2024, Black workers were 12.5% of the private sector workforce, compared to more than a fifth (22.6%) of all workers in the federal sector – a share that also exceeds their representation in the entire public sector (16.4%), which includes state and local governments. Black women’s share of the federal workforce (12.8%) was double their share in the private sector (6.4%).

Table 1. Demographic Snapshot of Private, Public and Federal Sector Workers, 2023-2024 Private sector

Public sector

Federal sector

Men

53.4%

43.2%

56.3%

Women

46.6%

56.8%

43.7%

White

58.2%

62.3%

55.4%

Black

12.5%

16.4%

22.6%

White men

31.1%

27.6%

34.4%

Black men

6.1%

6.4%

9.8%

White women

27.1%

34.7%

21.0%

Black women

6.4%

9.9%

12.8%

18-24

13.1%

6.2%

4.8%

25-54

64.2%

68.3%

68.4%

55+

21.1%

25.2%

26.6%

HS or less

35.8%

18.1%

18.8%

Some college

26.0%

23.3%

25.7%

College

25.2%

29.7%

28.6%

Advanced degree

13.0%

28.9%

26.9%

Union

6.8%

35.9%

29.5%

SOURCE: AUTHOR’S ANALYSIS OF POOLED 2023-2024 CPS-ORG MICRODATA

A national comparison of median hourly wages and low-wage (10th percentile) work shows the clear monetary benefit of federal-sector employment over the private sector. Figure A shows that this is true across race and gender, at both the middle and lower ends of the wage distribution. The hourly wage of a typical or median Black federal worker is more than 40% higher than that of the median Black worker in the private sector. Black federal workers – at the median

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and the 10th percentile – also have higher wages than same gender White workers in the private sector. It is worth noting that these wage comparisons do not account for the more generous benefits typically offered to federal and other public sector workers, which further raise the value of their total compensation. The higher wages earned by federal workers largely reflect the higher share of college- and advanced-degree holders as well as higher rates of union coverage relative to private-sector employees. Less than 7% of private sector workers are in a union or covered by a union contract, compared with 35.9% of all public sector workers and 29.5% of federal workers (see Table 1). While greater union coverage helps boost wages and benefits for all workers, it is an even more important factor in raising wages for those whose racial and gender discrimination further restricts their individual bargaining power.

Figure A. Median and 10th percentile wages by sector, race & gender, 2023-2024 (2024 dollars) $30.12

$27.98 $27.21 $27.96 $24.97

$21.11 $23.83 $19.87

$19.61 $16.42 $17.29 $15.54

$17.07 $15.42 $15.50 $14.92

$15.39 $12.97 $13.03 $12.23

$38.62 $33.93

$32.02

$29.03

Another factor contributing to better pay outcomes in the federal government is the use of the Schedule (GS) pay scale, which applies to over 70% of white-collar federal jobs. This helps mitigate pay discrimination in the federal government by standardizing the qualifications and compensation for a specific position, aligning them with experience, job performance, and local cost of living. On average, Black federal workers appear to experience only marginally improved pay equity over Black workers in the private sector, while the Black-White wage gap is much smaller in the public sector overall. Table 2. Comparison of Racial and Gender Wage Gaps by Sector (regression-adjusted), 2023-2024 Private

Public

Federal

Women vs. Men

-21.5%

-21.4%

-16.2%

Black workers vs. White

-14.9%

-3.8%

-12.6%

Black women vs. White men

-33.9%

-23.6%

-26.1%

Black men vs. White men

-20.1%

-10.4%

-18.2%

White women vs. White men

-24.3%

-22.8%

-17.5%

SOURCE: AUTHOR’S ANALYSIS OF POOLED 2023-2024 CPS-ORG MICRODATA

Black women White women Black men White men

In the federal sector, Black workers earn 12.6% less than White workers with the same levels of education, experience, union coverage status, gender, and state of residence, compared to 14.9% less in the private sector and just 3.8% less in the overall public sector (see Table 2). Although there is a sizeable wage gap between Black women and White men across sectors, the federal sector gap (26.1%) is nearly 8 percentage points lower than the gap that exists in the private sector (33.9%). Given the enforcement of the GS pay scale, remaining racial and gender pay gaps among federal workers likely reflect disparities in job positions and associated GS levels, a long-

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documented concern of Black federal worker advocates and activists. These disparities may stem from the underrepresentation of Black workers in higher-level, higher-paying positions, which can reflect differences across agencies in workforce demographic composition, occupational structures, and promotion rates. Notwithstanding the relatively higher economic position of many Black federal workers, these results epitomize the unfinished business of eliminating pay inequity and occupational segregation across all sectors of the labor market. Conclusion This brief summarizes the important role federal sector employment has played in providing better job opportunities for Black Americans than have traditionally been available in the private sector. However, those outcomes have never been a given. A solid history of advocacy and activism by and on behalf of Black federal workers, alongside others, was critical in securing important wins through executive actions and policy change. Moreover, pushback against some of the most egregious violations of federal workers’ civil and labor rights has at times led to stronger, more broadly enforced labor and equal employment standards, improving outcomes for all workers. Dr. Valerie Rawlston Wilson is a labor economist and Director of the Economic Policy Institute’s Program on Race, Ethnicity, and the Economy (PREE), a nationally recognized source for expert reports and policy analyses on the economic condition of America’s people of color. As PREE Director, Wilson has worked to elevate EPI’s thought leadership on issues of racial and economic justice and expand PREE’s capacity to prescribe policy solutions that center racial equity. Throughout her career, she has written extensively on various issues impacting racial economic inequality in the United States—including employment, wage, income and wealth disparities.

References 1. Maye, A. A., & Marvin, S. (2025). Trump attacks on federal agencies have steep implications for Black workers. Economic Policy Institute. Retrieved April 13, 2026, from https://www. epi.org/blog/trump-attacks-on-federal-agencies-have-steepimplications-for-black-workers/ 2. Aneja, A., & Xu, G. (2020). The Costs of Employment Segregation: Evidence from the Federal Government under Woodrow Wilson (Working Paper No. 27798). National Bureau of Economic Research. https://doi.org/10.3386/w27798 3. Craven, L. (2025, February 4). Federal Government Hired Blacks When Private Sector Wouldn’t. Medium. https://medium.com/@ lester_craven/federal-government-hired-blacks-when-privatesector-wouldnt-7df82166022d 4. Gooding Jr., F. W. (2013). American Dream Deferred: Black Federal Workers in Washington, D.C., 1941-1981. Georgetown University. 5. McNicholas, C., Sanders, S., Bivens, J., & Poydock, M. (2025). 100 ways Trump has hurt workers in his first 100 days. Economic Policy Institute. https://www.epi.org/publication/100-days-100ways-trump-hurt-workers/ 6. Green, E. L. (2025, August 31). In Trump’s Federal Work Force Cuts, Black Women Are Among the Hardest Hit. The New York Times. https://www.nytimes.com/2025/08/31/us/politics/trumpfederal-work-force-black-women.html 7. Wilson, V., Maye, A. A., & Marvin, S. (2025). A tale of 10 cities: Metro areas signal what’s at stake for Black Americans under Trump’s anti-equity agenda. Economic Policy Institute. https://www.epi. org/publication/a-tale-of-10-cities-metro-areas-signal-whats-atstake-for-black-americans-under-trumps-anti-equity-agenda/ 8. Wilson, V. (2025). Black federal workers by state. Economic Policy Institute. https://www.epi.org/publication/black-federalworkers-by-

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Scaling to Policy: Place-Based Investments to Address Racial Disparities Dr. Rashawn Ray and Dr. Terris Ross The stark racial disparities that continue to affect Black communities across the United States are not merely statistics; they represent a complex web of systemic inequities rooted deeply in America’s history. Generations of discriminatory policies, practices, and ideologies have systematically denied Black Americans equitable access to education, employment, housing, and wealth accumulation, creating persistent gaps that permeate every aspect of life. These disparities shape the opportunities available to Black Americans and necessitate urgent, research-driven policy interventions. This article aims to provide evidence-based policy recommendations for local investments that enhance place-based strategies—defined here as targeted, community-centered approaches that leverage local assets and address the distinct needs of specific geographic areas—to address these disparities in Black and under-invested communities. By analyzing successful models and advocating for increased philanthropic and governmental support for Black communities, we can pave the way toward equitable solutions that benefit all. RACIAL DISPARITIES The ongoing policy issues affecting Black communities are not isolated incidents, but rather the enduring legacy of historical injustices. Understanding the depth and breadth of inequities in these communities is crucial for formulating effective solutions. In the sections that follow, we discuss disparities in education, employment, homeownership, and wealth as we create a cradle-tocareer framework for how government and philanthropy can help close gaps in economic mobility for Black Americans. Education Educational disparities are profound and begin early. Black students

are more likely to attend underfunded schools with fewer resources, larger class sizes, and less experienced teachers, often resulting in lower academic achievement. Non-White school districts collectively receive approximately $23 billion less in funding than predominantly White districts, despite often serving similar numbers of students. This underinvestment leads to poorer educational outcomes, with high-poverty schools, often serving a majority of Black and Hispanic students, demonstrating significantly lower percentages of students meeting grade-level standards in reading and math compared to lowpoverty schools. The disparities extend to early childhood, where Black students are suspended from preschool at a rate disproportionate to their numbers, often due to teachers more closely observing Black boys for challenging behaviors. Moreover, student loan debt disproportionately affects Black Americans, with Black individuals more likely to carry education debt and higher average amounts, impacting their financial future and ability to accumulate wealth. Employment The employment landscape for Black Americans is characterized by systemic disadvantages. Studies consistently show that individuals with “Black-sounding” names are significantly less likely to receive callbacks on job applications than those with “White-sounding” names, even when résumés are identical.1 Black workers are also overrepresented in low-wage essential jobs, making them more vulnerable to economic shocks and health crises, as evidenced during the COVID-19 pandemic. In fact, Black men are over-represented in the top occupations predicted to die off over the next decade and underrepresented in the fastest growing occupations. These challenges are compounded by the criminal justice system; applicants with criminal records face significant hurdles, and the disproportionality of Black individuals in the justice system means this barrier affects them more acutely.

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Wealth and Homeownership Homeownership is a primary driver of wealth accumulation in the U.S., yet Black Americans face significant barriers. Discriminatory practices in home appraisals and lending are major contributors to the racial wealth gap. 2 Homes of similar quality in majority-Black neighborhoods are valued 23% less. This percentage amounts to a staggering $156 billion in cumulative losses for Black homeowners. THE ROLE OF PHILANTHROPY Given these entrenched disparities, the need for targeted, placebased investments – tailored policies, projects, and financial supports that leverage community assets and address the needs and characteristics of a particular place—in Black communities is critical. Philanthropy and intermediary organizations can play a vital role in providing the funding, resources, and technical assistance needed to bridge these gaps. Notable examples include the Harlem Children’s Zone, which has successfully implemented a holistic, place-based approach to addressing education and communitybuilding issues, and the William Julius Wilson Institute, which focuses on policy research and advocacy to elevate the needs of marginalized communities and cradle-to-career initiatives. These models demonstrate the power of comprehensive strategies tailored to community needs. Unfortunately, the current financial landscape reveals a stark reality— Black communities receive a disproportionately lower amount of investment compared to their White counterparts. Nationwide, philanthropic giving meant to address racial inequities is mostly concentrated on the coasts; meanwhile, 56% of the South is made up of Black people, yet only 3% of philanthropic funding makes its way there. A 2020 analysis by the National Committee for Responsible Philanthropy showed that community foundations across cities like Birmingham, Jackson, Houston, Chicago and Cleveland—whose Black populations range from 16% to 49%—designated less than 2% in funding explicitly to Black communities. And when the limited amount of philanthropic dollars does reach organizations focused on racial equity and justice, a larger proportion gets funneled into predominantly White-led organizations. This inequity demonstrates the urgent need for a recalibration of funding priorities that focus on

addressing the historical neglect of Black communities. The AIR Opportunity Fund specifically addresses this challenge. We identify communities that have been traditionally underinvested and exhibit the widest racial gaps. Our focus centers on local foci like Birmingham, Little Rock, Cleveland, the west side of Chicago, Prince George’s County in Maryland, the Delta region, and Phoenix. By concentrating resources in these communities, the AIR Opportunity Fund aims to catalyze local development through strategic partnerships with community-based organizations that are ready for research and technical assistance. These investments are not merely financial; they are about fostering local capacity and sustainability. Initiatives designed to empower Black communities have transformative effects on workforce development, education, community health and well-being, and access to resources. For example, our targeted programs seek to uplift underrepresented groups such as young men and boys (like in Maryland), providing them with tools to succeed in education and beyond. POLICY RECOMMENDATIONS FOR ADDRESSING RACIAL DISPARITIES Meaningful progress requires a multi-pronged approach that tackles systemic issues at their root, blending rigor with accessibility and translating evidence into actionable insights for policymakers, advocates, and organizational leaders. Central to this framework is the concept of “reparative investments”—deliberate, targeted allocations of public and private resources designed to redress specific, historically documented racial harms and close racial wealth gaps—which go beyond general anti-poverty programming to acknowledge and repair the distinct economic injuries inflicted on Black Americans.3 1. Housing Solutions: Combating Segregation and Building Equity Addressing housing disparities is paramount for achieving racial wealth equity. Policies must aggressively confront discriminatory practices and proactively invest in Black communities. Enforce Equitable Home Appraisals and Loans Stricter Regulation and Training: Policymakers must mandate stricter

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federal and state regulations for appraisers, requiring comprehensive anti-bias training that emphasizes objective methodologies free of racial bias. Mechanisms for independent review and accountability for biased appraisals should be strengthened. The federal government, along with philanthropic partners, can fund and support pilot programs for alternative, data-driven appraisal methods that neutralize neighborhood racial composition as a depreciating factor. Governor Wes Moore of Maryland created a task force to address these disparities in his state. Expand Access to Affordable Capital: Government-backed loan programs (e.g., FHA, VA) should be reformed to specifically address historical lending discrimination, ensuring equitable access to lowinterest, affordable loans for Black first-time homebuyers and those seeking to refinance in historically redlined communities. Targeted down payment assistance and credit repair programs can further support aspiring Black homeowners. As noted earlier, research indicates that these disparities extend beyond income and credit scores; policy is needed to ensure corrective action. Invest in Historically Undervalued Black Neighborhoods Targeted Community Development: To counteract the cumulative losses from home devaluation in Black neighborhoods, comprehensive community development initiatives are essential. These should include public and private investments in infrastructure, schools, parks, and amenities in these areas.4 Such investments can raise property values organically, benefiting existing homeowners and attracting new ones, thereby closing the median home value gap observed in cities like Atlanta. Local governments can operationalize these initiatives by: (1) establishing cross-departmental equity offices with authority to align and coordinate public spending across housing, schools, and infrastructure; (2) partnering with Community Development Financial Institutions (CDFIs) to co-invest in neighborhood-level projects and expand access to affordable capital; and (3) adopting community benefit agreements with private developers that guarantee affordability thresholds, local hiring preferences, and anti-displacement protections for existing residents.5

Address Residential Segregation: Policies to promote true residential integration and dismantle discriminatory zoning laws (e.g., exclusionary single-family zoning) that perpetuate segregation are crucial. This includes incentivizing the development of mixed-income housing in well-resourced areas and supporting diverse housing types in formerly segregated communities. 2. Support for Small Businesses and Black Entrepreneurship Fostering a robust ecosystem for Black entrepreneurs is vital for wealth creation and employment within Black communities. Targeted Grants and Loans Policymakers should establish and expand federal and state programs offering direct grants and low-interest loans specifically for Black-owned small businesses. This addresses historical capital deprivation and helps overcome systemic hurdles in accessing traditional financing. Philanthropic organizations can play a critical role by providing seed funding and matching grants to leverage public investment. Business Incubators and Technical Assistance Invest in and expand business incubators, accelerators, and mentorship programs tailored for Black entrepreneurs. These initiatives provide not only capital but also critical technical assistance, legal support, and networking opportunities that are often less accessible to Black business owners. 3. Reparations for Black Americans To address the profound and enduring economic damage caused by slavery and subsequent systemic discrimination, a comprehensive reparations program is a necessary policy intervention. As highlighted in the Brookings article, “Why we need reparations for Black Americans,” reparations are not merely about compensation; they are about restorative justice and addressing the wealth gap created by centuries of exploitation.6 Acknowledge and Quantify Harm The first step towards reparations is a national acknowledgment of the immense and ongoing economic harm inflicted upon Black Americans

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through slavery, Jim Crow, redlining, and other discriminatory practices. This requires robust research to quantify the intergenerational wealth loss and economic disadvantages. Multi-faceted Approach Reparations should be multi-faceted, including direct payments, land distribution, educational programs, and investments in Black communities. As Dr. King noted in his “I Have a Dream” speech, America has defaulted on a “promissory note” to its Black citizens, and it is time to pay that debt. Options for funding, such as the sale or lease of underutilized federal land, demonstrate that the U.S. has mechanisms to begin this process. Targeted Investments A significant portion of reparations could be directed toward establishing trust funds for community development, affordable housing initiatives, Black-owned businesses, and educational programs in historically marginalized areas, aligning with the AIR Opportunity Fund’s place-based investment model. This approach would ensure that resources directly benefit and empower Black communities to build sustainable wealth and infrastructure. 4. Enhance Philanthropic and Local Investment for Systemic Change The policy recommendations above require significant shifts in how philanthropic and governmental resources are allocated and managed. Support for Research and Technical Assistance-Ready CBOs Philanthropic organizations and government agencies must proactively identify and fund community-based organizations (CBOs) that demonstrate readiness for research and technical assistance. This includes assessing their capacity for data collection, program evaluation, and strategic planning. The AIR Opportunity Fund’s model, which targets under-invested places with wide racial gaps and invests in CBOs focused on workforce development and education, exemplifies this approach. This ensures that interventions are evidence-based and responsive to local needs.

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Flexible and Long-Term Funding Shift away from short-term, restrictive grants towards flexible, multiyear funding models that allow CBOs to build capacity, innovate, and adapt their strategies over time. This includes core operating support, which is often difficult for smaller, grassroots organizations to secure. Intermediaries as Catalysts Recognize and support the crucial role of intermediaries, such as those affiliated with Blue Meridian Partners. These organizations can aggregate resources, provide expertise, and connect wealthy donors and government entities with effective, on-the-ground CBOs that are deeply embedded in the communities they serve. This bridges the gap between large-scale funding and local impact. Racial Equity Frameworks in Funding Integrate robust racial equity frameworks into all funding decisions for both public and private institutions. This means evaluating proposals based on their potential to reduce racial disparities, promote equitable outcomes, and empower Black communities, rather than relying on superficial diversity metrics. This aligns with the “Racial Equity Framework“, which involves becoming a “racial equity learner, advocate, and broker,” fostering accountability and transparency in addressing systemic racism. ADDRESSING CHALLENGES TO IMPLEMENTATION AND TRACKING MEASURABLE OUTCOMES Even the most well-designed policy recommendations face realworld obstacles. Three challenges merit particular attention. First, political resistance—particularly to race-conscious spending and reparations—is substantial. Policymakers can counter this by building broad coalitions that emphasize the universal economic benefits of closing racial gaps and by highlighting successful, bipartisan precedents such as the Community Reinvestment Act and enterprise zone legislation. Second, resource limitations often constrain local governments from sustaining long-term investments; braided funding strategies—combining federal block grants, state allocations, philanthropic capital, and CDFI financing—can extend the reach and durability of individual initiatives. Third, organizational capacity gaps in under-resourced CBOs can limit program delivery;

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sustained investment in core operating support, training, and data infrastructure—as practiced by the AIR Opportunity Fund—directly addresses this barrier.5 To address implementation challenges, a core set of measurable outcomes should be adopted. Baseline data should be established at program launch, with annual reporting against these benchmarks, enabling policymakers to make evidence-based adjustments and demonstrate impact to funders and communities alike by examining whether, how, and why gaps between inter- and intra-racially close. For education, outcome metrics should track attendance, reading and math proficiency, high school graduation rates, and college enrollment and graduation rates. For economic mobility, key indicators include the labor force participation rate, median wage growth in targeted zip codes, new Black-owned business formation rates, and the sustainability of those businesses. For housing, metrics include measuring outcomes for ownership rates, interest rates, home values, the number of Black households assisted through down-payment or anti-displacement programs, and changes in exclusionary zoning and infrastructure. Conclusion The persistence of racial disparities in employment, education, wealth, and homeownership is a testament to the enduring legacy of systemic racism. Addressing these deep-seated inequities requires not just incremental shifts but radical changes in the structure of our society. By focusing on place-based investments, channeling resources through research- and technical-assistance-ready community organizations, and implementing targeted policy reforms in housing, small business support, and, critically, reparations, we can begin to dismantle these structures.

Dr. Rashawn Ray is Vice-President and Executive Director of the AIR Opportunity Fund where he leads a $225 million initiative focused on expanding opportunity in education, workforce development, public safety, and community health and wellbeing. Dr. Ray is also a Professor of Sociology at the University of Maryland and Senior Fellow at The Brookings Institution. His expertise is widely sought by policymakers, and featured across major media outlets including The New York Times, Washington Post, CNN, and NPR. Dr. Ray was recently awarded an Andrew Carnegie Fellowship for his scholarship on policing, health, and wealth disparities. Dr. Terris Ross is the Managing Director of the AIR Opportunity Fund, where she leads the Fund’s strategy in education. She has more than 20 years of experience in education policy, research, and advocacy and she works to expand educational and economic opportunities by supporting research-driven solutions that inform policy and improve student success. She previously held research and evaluation leadership roles at the U.S. Department of Education, where she directed studies on education access and outcomes. Dr. Ross received her bachelor’s and master’s degrees in mathematics from Clark Atlanta University and her Ph.D. in education research, measurement and statistics from Georgia State University.

The AIR Opportunity Fund’s model in cities like Birmingham, Chicago, Little Rock, Cleveland, Phoenix, the Delta region, and Prince George’s County and Baltimore, Maryland, demonstrates the potential of such focused, community-driven strategies. Ultimately, achieving social justice and a truly racially inclusive society demands a collective commitment from policymakers, philanthropists, and communities to translate evidence into equitable action, ensuring that America finally honors its “promissory note” to all its citizens.

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REFERENCES 1.

2. 3. 4.

5. 6.

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Bertrand, Marianne, and Mullainathan, Sendhil. 2004. “Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination.” American Economic Review, 94(4): 991–1013. Oliver, Melvin L., and Thomas M. Shapiro. 1995. Black Wealth/ White Wealth: A New Perspective on Racial Inequality. Routledge. Darity, William A., Jr., and Mullen, Andrea. K. 2022. From Here to Equality: Reparations for Black Americans in the Twenty-First Century (2nd ed.). University of North Carolina Press: Chapel Hill. Ray, Rashawn, Andre Perry, David Harshbarger, Samantha Elizondo, and Alexandra Gibbons. 2021. “Homeownership, Racial Segregation, and Policy Solutions to Racial Wealth Equity.” The Brookings Institution. Kania, John, and Kramer, Mark. 2011. “Collective Impact.” Stanford Social Innovation Review, 9(1): 36–41. Ray, Rashawn, and Andre Perry. 2020. “Why We Need Reparations for Black Americans.” The Brookings Institution.

The persistence of racial disparities in employment, education, wealth, and homeownership is a testament to the enduring legacy of systemic racism.

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