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. 

5 Strategies
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Child care subsidies

Provide financial assistance to working parents, or parents attending school, to pay for child care

Evidence Rating:
Scientifically Supported
  • 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

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

Minimum wage increases

Increase the lowest hourly, daily, or monthly compensation that employers may legally pay to workers

Evidence Rating:
Mixed Evidence
  • Income

Payday loan regulations

Regulate short-term loans that must be repaid by a borrower’s next pay day via bans, caps on maximum interest rates and loan amounts, or require minimum loan terms and credit cost

Evidence Rating:
Mixed Evidence
  • Income