Strategies: Racial Wealth Building

Evidence-informed strategies to close the racial wealth divide. These solutions account for historical practices that established and maintain the wealth divide– and reduce wealth inequities by increasing income and assets, expanding employment opportunities, removing barriers to quality education, and increasing access to homeownership. 

42 Strategies

Paid family leave

Provide employees with paid time off for circumstances such as a recent birth or adoption, a parent or spouse with a serious medical condition, or a sick child
Evidence Rating:
Scientifically Supported
  • Employment

Individual Development Accounts (IDAs)

Support subsidized asset accumulation programs in which deposits by low and moderate income participants are matched by program sponsors; withdrawals must be used for qualified expenses to retain matching funds
Evidence Rating:
Some Evidence
  • Income

Unemployment insurance (UI)

Extend or raise the compensation provided to eligible, unemployed workers looking for jobs
Evidence Rating:
Some Evidence
  • Income

Full child support pass-through and disregard

Adopt policies that allow custodial parents who receive Temporary Assistance for Needy Families (TANF) to collect all child support paid by the non-custodial parent; no portion is retained by the state
Evidence Rating:
Scientifically Supported
  • Income

Child tax credit expansion

Expand federal or state child tax credits by increasing credit amounts, making credits refundable, decreasing or eliminating the earnings threshold, or creating a fully refundable supplement
Evidence Rating:
Expert Opinion
  • Income

Living wage laws

Establish locally mandated wages that are higher than state or federal minimum wage levels
Evidence Rating:
Some Evidence
  • Income

Minimum wage increases

Increase the lowest hourly, daily, or monthly compensation that employers may legally pay to workers
Evidence Rating:
Mixed Evidence
  • Income

Earned Income Tax Credit (EITC)

Expand refundable earned income tax credits for working individuals and families with low to moderate incomes
Evidence Rating:
Scientifically Supported
  • Income

College access programs

Help high school students prepare for college, complete applications, and enroll, especially first-generation applicants and students from families with low incomes
Evidence Rating:
Scientifically Supported
  • Education

Low Income Housing Tax Credits (LIHTCs)

Provide funding via tax credits at the state and local level to support development and rehabilitation costs of low income rental housing
Evidence Rating:
Some Evidence
  • Housing and Transit