Treasury's Internal and National Steps in Advancing Racial Equity
The Department of the Treasury Secretary Janet Yellen has appointed Janis Bowdler to serve as Treasury’s first Racial Equity to advance racial equity efforts. In her new position, Bowdler will tackle racial inequality issues in banking and financial services. The announcement came the same day as Deputy Secretary Wally Adeyemo published “A Coordinated Strategy to Advance Racial Equity at Treasury.”
The Coordinated Strategy notes that COVID-19 exacerbated systemic inequities which had existed well before the crisis. Following passage of the American Rescue Plan (ARP), a $1.9 trillion relief package of which more than $1 trillion is managed by the Treasury Department the Department stood up an Office of Recovery Programs to manage ARP funds.
Under the Coordinated Strategy, the Office and the Department are looking to a three-pronged approach for ensuring funds are dispersed equitably:
Direct support to American families: the Strategy notes the disproportionate financial impact of the pandemic on communities of color and outlines how economic impact payments and the child tax credit can improve these situations. The Strategy explains, “Going forward, Treasury will continue to build on the lessons we have learned from the distribution of EIPs in reaching underserved communities and will continue to invest in new tools to harness our data to better serve the American people.”
House equity and access: the Strategy notes two ARP programs aimed at ensuring Americans can keep their homes during the pandemic and the role of infrastructure support in preventing evictions and foreclosures. “We are committed to using every lever at our disposal and providing any support we can to state and local governments in order to make that happen. By helping recipients stay in their homes, these programs will help families avoid the economic scarring that comes with eviction or other housing instability—job loss for adults, and lower health and educational outcomes for children, among others,” the Strategy explains.
State and local aid: the Strategy notes the “historic” investment in state, local, territorial, and Tribal governments to respond to the pandemic, maintain fiscal strength, and invest in the future. The Strategy explains the importance in ensuring these funds on focused on low-income communities.
“The American economy has historically not worked fairly for communities of color. The pandemic threw a spotlight on this inequity; people of color were often the first to lose their jobs and businesses,” stated Yellen, “Treasury must play a central role in ensuring that as our economy recovers from the pandemic, it recovers in a way that addresses the inequalities that existed long before anyone was infected with COVID-19.”
As a result, Secretary Yellen named Bowdler to serve as Counselor for Racial Equity. Bowdler began her career as a case manager for community development organizations that focused on affordable homeownership and renting. Bowler later worked for UnidosUS, one of the nation's largest Latino advocacy groups, where he focused on issues related to economic mobility, such as retirement security, housing, banking, and community development.
Most recently, she served as president of the JPMorgan Chase & Co. Foundation, where she was instrumental in launching initiatives for racial equity, extending capital access for entrepreneurs of color, and improving banking products and services for underserved communities.
“I could not be more humbled by the historic opportunity to serve as the U.S. Department of the Treasury’s first Counselor for Racial Equity. Addressing racial and gender disparities and giving underserved communities greater access to opportunities creates more broadly shared prosperity for all,” stated Bowdler.
Deputy Treasury Secretary Wally Adeyemo highlighted the department's commitment to building a workforce that reflects the diversity of the American people, beyond Bowdler's appointment. Currently, more than 40% of Treasury Department political appointees identify as people of color, reflecting America's diversity, and nearly half of these senior level political appointees are people of color.
"With more people of color and people from different backgrounds and lived experiences at the decision-making and policy-making table, Treasury is better able to make policies and administer programs to reach more American families, businesses, and communities," stated Adeyemo.
