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As a community, Black people have a lot to be proud of! Per The Chicago Tribune, the Illinois reparation fund has been transferred to a Black-owned bank. In November 2019, the city council in Evanston, Ill., voted 8-1 to approve the city’s first-of-its-kind reparations program. The landmark decision compensates Black residents for racist housing policies that have robbed communities of wealth.
With the program being funded through tax revenue on marijuana sales, opening a second dispensary will increase available funds. The program initially committed $10 million over 10 years. This is the first city to move beyond discussions of reparations. The first payments went out to residents in 2021.
In April 2024, Reparations Committee Chair Robin Rue Simmons announced that the $17 million reparations fund would be transferred to Black-owned Liberty Bank and Trust.
“This is a way that this repair can be multiplied,” Simmons told the publication. “$17 million in a Black bank is going to give more lending power and access to Black businesses, Black mortgages that are fair, and other forms of support, so this is a very, very big deal.”
As of June 2024, $4.5 million has already been disbursed. Black Evanston residents who were 18 years old from 1919 until 1969 and their descendants who were affected by redlining and other racist policies are eligible for the program.
Evanston, Ill., is another chapter in the rising pressure for compensation for Black Americans.
Reparations aren’t new to America. According to the Brookings Institute, a policy think tank, “Black Americans are the only group that has not received reparations for state-sanctioned racial discrimination, while slavery afforded some white families the ability to accrue tremendous wealth.” Other compensated groups include Native Americans, Japanese Americans, and Jews.
Aside from monetary restitution, closing the racial wealth gap should address access to education, student loan forgiveness, homeownership, and business grants.
“Given the lingering legacy of slavery on the racial wealth gap, the monetary value we know that was placed on enslaved Blacks, the fact that other groups have received reparations, and the fact that Blacks were originally awarded reparations only to have them rescinded provide overwhelming evidence that it is time to pay reparations to the descendants of enslaved Blacks,” The Brookings Insitute concludes.
Reparations recipients have been able to use their funds as first-time home buyers. According to Simmons, the Liberty Bank and Trust has offered 100% refinancing on predatory loans, special savings accounts, and mortgage products.
“If we have inspired more than 100 municipalities to do reparations, what if they follow this model?” Simmons told the Chicago Tribune. “Let’s not be scared to dream.”
Those who qualify for the fund get up to $25,000 and can allocate it in four ways: home purchase, home mortgage assistance, home improvement, and cash.
More cities are considering reparations programs.
Although a conservative group filed a lawsuit threatening the Evanston reparation program in May 2024, the list of cities open to discussing reparations is growing. The following cities are in talks:
- Asheville, N.C.
- Kansas City, M.O.
- Boston, Mass
- Northampton, Mass
- Detroit, Mich.
- St. Paul, Minn.
- St. Petersburg, Fla.
- Providence, R.I.
- Durham, N.C
- San Francisco, Calif.
- St. Louis, M.O.
- Sacramento, Calif.
- Fulton County, Ga.
- Shelby County, Tenn.
- Alameda County, Calif.
Now that the Illinois reparation has been transferred to a Black-owned bank, it marks a step toward closing the racial wealth gap for Black Americans. With ongoing developments, the Illinois reparations fund is certainly a hot topic to keep your eye on.
The author’s content and opinions have not been pre-reviewed, approved or endorsed by Discover.