$1 Trillion Opportunity for change in Distressed Communities: Are U.S. Agencies Complying with the Evidence Act?

Since the 1960s, the U.S. has invested $22 trillion in anti-poverty initiatives—more than the $4 trillion spent on World Wars I and II combined.

Despite annual expenditures of $1 trillion on poverty-related programs, exceeding our $750 billion defense budget, distressed communities still face a 25% poverty rate. Consider Newark, New Jersey's South Ward, where intergenerational poverty is prevalent.

Here, 76% of children under five live below the poverty line. The youth unemployment rate stands at 50% for ages 16-19 and 33% for ages 20-24. Among adults, 45% earn less than $20,000 annually, with 41% below the poverty line. In some neighborhoods, over 60% of elderly residents live in poverty.

A critical missing component in our poverty alleviation efforts is the evidence of what's working and what's not, derived directly from the communities we aim to help—the most vulnerable. It's evident that our approach requires a paradigm shift, emphasizing a renewed commitment to gathering and acting on this crucial feedback.

The $280B Science and CHIPS Act presents an opportunity for change. NIST has received $39 billion of the $52 billion appropriated through the CHIPS and Science Act of 2022, which aims to catalyze long-term, sustainable growth in the domestic semiconductor industry, focusing on economically disadvantaged communities.

NIST released a Notice of Funding Opportunity (NOFO) for the CHIPS Incentives Program, seeking organizations to partner with for implementation. The NOFO evaluates applicants based on their commitments, partnerships, and strategies to benefit facility and construction workforces, emphasizing expanded opportunities for economically disadvantaged communities.

However, are workforce commitments in a grant proposal enough? The Science and CHIPS Act aims to expand the U.S. semiconductor industry but faces a major skills gap. To meet industry growth, an estimated 90,000 to 100,000 more semiconductor technicians and three times more engineering graduates are needed by 2030. Additionally, there's an expected shortage of up to 300,000 engineering professionals by the end of the decade.

The program also promises job creation, workforce development, and community investments. A key requirement for applicants is to submit a workforce development plan that includes commitments to worker and community investments, especially in underserved areas, and mandates partnerships with educational institutions for workforce training.

To ensure that the $39 billion CHIPS program equitably benefits communities like Newark's South Ward, I recently filed a Freedom of Information Act (FOIA) request (#SBA-2024-003983) with the Small Business Administration. This request aims to investigate NIST's compliance with the HUBZone program.

The HUBZone program is designed to help small businesses in economically distressed areas secure access to federal procurement opportunities. This inquiry is crucial for verifying that the CHIPS program's commitment to uplifting distressed communities is being effectively implemented and meeting its goals of equity and inclusion.

The Evidence Act

Moreover, for Evidence-Based Policymaking Act of 2018, signed by President Trump and operationalized under President Biden, mandates transparency and efficacy in federal programs. The Evidence Act requires agencies to develop evaluation plans, engage with stakeholders, and use evidence to guide decision-making and continually improve programs. Compliance with the Evidence Act ensures that taxpayer funds are effectively achieving their intended outcomes and that programs are responsive to community needs.

I plan to file a similar FOIA request to assess NIST's adherence to the Evidence Act in implementing the CHIPS program.

Workforce Innovation and Opportunity Act (WIOA) Example

The Workforce Innovation and Opportunity Act (WIOA), signed into law in 2014, represents another significant federal commitment of billions of dollars aimed at reforming job training programs and improving the nation's workforce development system. The report "Opportunity Lost? Maximizing Large Federal Funds to Support Opportunity Youth" by Ken Thompson focuses on the challenges and potential improvements in utilizing federal funding streams to support 'opportunity youth'—young individuals who are neither employed nor engaged in education. Despite the availability of $50B in federal resources designed to address the needs of this demographic, the report identifies significant issues in how these funds are accessed and utilized by community organizations.

For example, neither New Jersey State nor Newark's local Workforce Development Board is currently tracking performance of its WIOA spending.

As a member of the Beloved Ecosystem, we will break the cycle of intergenerational poverty in the U.S., beginning with Newark, NJ. Agencies sometimes face challenges in effectively utilizing taxpayer funds to address issues in "underserved communities" due to a lack of comprehensive metrics and evaluations.

I’ve shared our full Beloved Ecosystem business plan and our first startup Talented to inspire others to compete in delivering tangible results for taxpayers and the millions trapped in intergenerational poverty.

Poverty is caused by a complex mix of factors and solutions must address all aspects and promote a more equitable system. Our journey begins in Newark, NJ with the launch of a Minimum Viable Ecosystem (MVE) - nine interconnected startups that form the foundation for comprehensive community transformation.

As mentioned, the US spends over $1 trillion to fight poverty. Without proper oversight, the process of agency grants aimed at helping 'underserved communities' can devolve into mere political maneuvers or a grant proposal-writing exercise. These initiatives must do more than just fulfill Notice of Funding Opportunity (NOFO) requirements; they need to drive real change, not just seem effective on paper as has been common since the 1960s.

I plan to file a similar FOIA request to assess NIST's adherence to the Evidence Act in implementing the CHIPS program. Ensuring agency compliance with the Evidence Act and HUBZone program are our best opportunity to catalyze the national systemic changes we seek.

NIST's compliance with the Evidence Act in the CHIPS program presents a prime opportunity to adhere to these principles, potentially sparking a broader shift toward evidence-based policymaking and inclusive spending by U.S. government agencies. This approach aims for a more efficient use of taxpayer dollars while addressing the most needy citizens and communities.

What gets measured, gets done.

What can you do to help break the cycle of intergenerational poverty in Newark and beyond? Like and share this post to spread the word. ??

Thank you for your attention,

Chinedu