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

Child care subsidies

Provide financial assistance to working parents, or parents attending school, to pay for child care
Evidence Rating:
Scientifically Supported
  • Income

Refundable child and dependent care tax credit

Offer a refundable tax credit to working families with qualifying children or other dependents that receive care outside the home (e.g., a spouse with disabilities)
Evidence Rating:
Expert Opinion
  • 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 Home Energy Assistance Program (LIHEAP)

Provide funds to households with low incomes to meet home energy needs, especially for households with children, older adults, or individuals with disabilities
Evidence Rating:
Expert Opinion
  • Housing and Transit

Inclusionary zoning & housing policies

Require developers to reserve a proportion of housing units for residents with low incomes via mandatory requirements or incentives such as density bonuses
Evidence Rating:
Some Evidence
  • Housing and Transit

Land banking

Acquire, hold, manage, and develop properties such as vacant lots, abandoned buildings, or foreclosures, and transition them to productive uses, often affordable housing developments.
Evidence Rating:
Some Evidence
  • Housing and Transit
  • Diet and Exercise

Tax increment financing (TIF) for affordable housing

Create designated tax districts that generate revenue to invest in affordable housing initiatives, blight remediation, and economic development efforts
Evidence Rating:
Expert Opinion
  • Housing and Transit

Community land trusts

Purchase the land a home is on to lease to homeowners with low and middle incomes and require homeowners to sell the home back to the trust or to another resident with low income upon moving
Evidence Rating:
Some Evidence
  • Housing and Transit

Community Development Block Grants (CDBGs)

Provide funding for local community development activities such as affordable housing, anti-poverty programs, and infrastructure development
Evidence Rating:
Some Evidence
  • Housing and Transit

HOME Investment Partnership Program

Provide grants to states and localities to fund activities that build, buy, or rehabilitate affordable housing for rent or homeownership, or provide direct rental assistance to households with low incomes
Evidence Rating:
Expert Opinion
  • Housing and Transit