Feds to Double Contracts to Small, Disadvantaged Businesses

Yesterday, the Biden Administration announced several new actions aimed at narrowing the racial wealth gap including targeted infrastructure investments, efforts to reduce housing discrimination, and a pledge to purchase more goods and services from small, disadvantaged businesses.

On the 100th anniversary of the Tulsa Race Massacre, President Joe Biden announced that his Administration is doubling down on efforts to reduce the racial wealth gap. The federal government will use its procurement power to increase the share of contracts to small disadvantaged businesses by 50 percent – an additional $100 billion over five years.

From the press release:

The federal government is the largest consumer of goods in the world, buying everything from software to elevator services to financial and asset management, Federal procurement is one of our most powerful tools to advance equity and build wealth in underserved communities.

Biden also announced that the federal government will take more action to address racial discrimination in the housing market. It will start by sending its proposed rulemaking to Congress for confirmation. The Administration is hoping to counteract current trends that often show homes in majority-Black neighborhoods are valued significantly less than comparable homes in similar—but majority-White—communities.

From the press release:

The effort will seek to utilize, quickly, the many levers at the federal government’s disposal, including potential enforcement under fair housing laws, regulatory action, and development of standards and guidance in close partnership with industry and state and local governments, to root out discrimination in the appraisal and homebuying process.

For more information, view the full press release and coverage in ABC News.