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HOPE Economic Mobility Forum – Seizing the Moment: Maximizing Federal Investment in Under Resourced Communities

May 28th, 2024

By Sara Miller, Senior Policy Analyst

Last week, HOPE hosted an Economic Mobility Forum in Selma, Alabama titled “Seizing the Moment: Maximizing Federal Investment in Under Resourced Communities”.  At the event, representatives from several federal agencies, local municipalities and county governments convened to discuss the historic investment opportunities available to low resourced communities for the improvement of economic mobility and infrastructure. The event was held in person and live streamed for virtual participants.  A recording of the event is available here.

The event included a keynote address from Dr. Corey Wiggins, Federal Co-Chairman of the Delta Regional Authority, who discussed recent work in the Selma Alabama to aid recovery from devastating tornadoes that hit the area last year. More broadly, Dr. Wiggins talked about the need for “lengthening the runway” for small towns who have faced obstacles accessing federal funds. Otherwise, those initiatives will uphold the status quo.

Following the keynote, Kiyadh Burt, Director of the Hope Policy Institute, presented regional data outlining the current challenges in economic mobility in the Deep South. The data showed that economic mobility is lowest among communities in the Deep South; however, accessing federal resources is key to improving community infrastructure and financial stability of low resourced communities.  While these funds are critical for these areas, Burt also presented research showing that rural communities in the Deep South are least likely to have to have the capacity to absorb federal dollars, underscoring the need for federal programs to better consider the capacity and community infrastructure needs of rural communities.

Community Perspectives

The event then continued with panel discussions.  The first, titled Community Perspectives, included several local leaders who discussed first hand, the factors that affect economic mobility in their communities, and opportunities and challenges regarding their ability to access, deploy and manage the resources needed to address them. Panelists included:

• Phyllis Belcher, Executive Director, Greene County Industrial Authority
• Commissioner Marcus Campbell, Sumter County, Alabama
• Mayor Thomas Haygood, Mayor of Tuskegee
• Christopher Spencer, Chief Community Engagement Officer, Black Belt Community Foundation
• Moderator: Nigel Roberts, Senior Vice President of Community and Economic Development at HOPE

The panel lifted up several challenges faced in their communities in accessing critical federal programs such as limited resources and little to no staff dedicated to grant writing and grant management. Their communities often depend on consultants or other contracting organizations to apply for federal funds. Some local governments are putting together pools of grant writers and program managers who can assist small towns in the Black Belt area of Alabama.  In addition to getting assistance to small local governments, Phillis Belcher of the Green County Industrial Authority discussed the need for applications for federal funds to be streamlined, use existing data, and to remove some of the complexity that can be a barrier for small towns.  Program design also should be evaluated to determine structures that may be harming small towns like programs designed with  reimbursement models which discourage small town accessibility because they may not have the cash flow to pay program costs up front. Finally, the group gave several examples of the importance of collaboration among small towns and community institutions in bringing in and managing vital resources.

Investing in America

The second panel was presented in two parts and included federal agency representatives and other resource providers. Panelists shared information about current programs that help increase economic mobility in under resourced communities and opportunities to leverage private investment and technical assistance.  Panelists included:

Panel 1

• Kendall Corley, Deputy Chief of Staff of External Engagement, U.S. Small Business Administration
• Development
• Marcia T. Johnson Alabama Deputy State Director of USDA Rural Development
• Marilyn Shazor, Senior Policy Advisor for Transportation Policy, U.S. Department of Transportation
• Moderator Ed Sivak, Chief Policy & Communications Officer, HOPE

Panel 2

• David Eichenthal, Inflation Reduction Act Program Office, U.S. Department of the Treasury
• Jennifer Riley-Collins, Regional Administrator, U.S. Department of Housing and Urban
• John Nicolson, Chief of Staff, Regional IV U.S. Environmental Protection Agency
• Moderator: Bill Bynum, Chief Executive Officer, HOPE

Panel participants discussed the significance of federal funds while acknowledging that some past federal practices not only aided communities inequitable distribution of relief but in some cases caused harm in underserved communities like the Black Belt.  In contrast, the emerging commitment to underserved areas through initiatives like Justice 40, has the potential to be a game changer.  Some of the ways panelists discussed making this a reality is by making sure every community is aware of the resources available and is informed about where private investments are going that will expand opportunities in local government and community nonprofit institutions.  Some panelists discussed new technical assistance programs and the importance of reaching out to regional offices of federal agencies like, the Small Business Administration development centers, local HUD offices, and USDA rural development offices to discuss needs and potential projects.  Panelists also discussed some upcoming innovative program design, i.e. direct pay, through the Inflation Reduction Act that will not require competitive grant making and is not capped to only provide resources to a limited number communities, but instead will be available to all eligible entities.

Key Takeaways from the Event

• Without intentional program design to make funds more available for small towns and other underserved areas, funding programs (Historic federal funds available through the American Rescue Plan, Bipartisan Infrastructure Law, and Inflation Reduction Act) will perpetuate existing inequalities.
• Small towns are often at the mercy of intermediary awardees of federal funds, like state governments, where variance in political priorities, program design, and technical assistance available for small town awardees can mean underserved areas remain out of the loop.
• Robust and proactive technical assistance for underserved communities must be designed into federal funding programs. That technical assistance is needed throughout the lifecycle of the project, not only in grant writing, but also in program management, reporting, and auditing federal programs.

The event in Selma was the second in a series of three events on the topic of maximizing federal investment in under resourced communities.  The third event in the series is planned for September in West Memphis, Arkansas.

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