PROVIDENCE — Two years after the city of Providence formally apologized for its role in past discriminatory and racist policies against Black and Indigenous communities, nearly half of the $10 million set aside for reparations has left city coffers.
The money, which comes from the city’s COVID relief money from the American Rescue Plan Act, was approved by the City Council back in 2022, aimed at “closing the racial wealth and equity gap between Providence residents and neighborhoods.”
The reparations plan does not include any direct payments to residents, but focuses on funding programs such as job training, scholarships, and education.
A chunk of the money is being distributed by the United Way of Rhode Island, which on Wednesday announced 15 nonprofits that will receive a combined $1.5 million from the funds. A whopping 122 organizations had applied for the grants, according to Larry Warner, the chief impact and equity officer at the United Way.
Hover over the interactive chart below to see where the city has directed reparations funds thus far.
While the reparations funds are targeted toward helping Providence residents of African and Indigenous heritage, former Mayor Jorge Elorza’s administration determined they would face legal challenges if they limited the money to any particular race or ethnicity.
Instead, the qualifications to receive funding include those two ethnic groups plus any Providence resident living in poverty, and anyone of any income living in a specific list of neighborhoods and qualified census tracts.
Mayor Brett Smiley, who took office before the money had been spent, opted to continue with the Elorza-era program rather than seek to reallocate the money elsewhere.
“We know that this is but a scratch in the surface of multiple generations of harm,” Smiley said Wednesday. “But nevertheless, you have to start somewhere.”
So far, the city has spent more than $4.5 million out of the $10 million, according to a breakdown provided by Smiley’s office. “Spent” means the money has been sent by the city to a vendor or organization, not necessarily that the vendor has expended all the funds in the community.
The nearly $5.5 million in unspent funds have to be at least obligated by the end of this year, under federal rules for the American Rescue Plan dollars. They must be fully spent by the end of 2026. A spokesperson for the city said solicitations will be going out soon to get contracts in place before the deadline in December.
Smiley said “everyone has acknowledged” that $10 million is not enough, but he hopes it will be a “source of inspiration” for private philanthropy, state and federal leaders to find ways to make up for generations of racial harm. He said there are not current efforts by the city to raise more money for reparations.
“We hope that others will feel both an obligation or the pressure to step up and do their part,” he said.
Some of the money spent so far has gone to home-based daycare providers, neighborhood providers such as barbershops, and an “earn & learn” program aimed at training Providence residents for jobs while paying them a stipend.
The largest tranche, $3.35 million, has gone to the United Way, which is administering the COVID-19 Equities Fund aimed at communities disproportionately impacted by the pandemic. That was the focus of Wednesday’s announcement at Building Futures, an organization that trains workers in the construction trades and is receiving some of the money. (City Council President Rachel Miller works at Building Futures as her day job.)
The 15 nonprofits that received grants Wednesday will receive $50,000 per year for two years, other than the Center for Indigenous Rights, which requested $29,300. The recipients and their planned use for the money is listed below:
- Building Futures: Closing the Racial Wealth Gap/Workforce Development
- Center for Indigenous Peoples Rights: Advancing Culturally Congruent Education/Advocacy
- Center for Women & Enterprise: Closing the Racial Wealth Gap/Economic Empowerment
- College Unbound: Closing the Racial Wealth Gap/Education
- DARE: Addressing the Negative Effects of Urban Renewal/Advocacy
- Justice Assistance: Closing the Racial Wealth Gap/Economic Empowerment
- Manton Avenue Project: Advancing Culturally Congruent Education/Arts
- Mini Entrepreneurs of Rhode Island: Advancing Culturally Congruent Education/Education
- Olneyville Neighborhood Association: Closing the Racial Wealth Gap/Workforce Development
- Providence Promise: Closing the Racial Wealth Gap/Economic Empowerment
- Providence Revolving Fund: Closing the Racial Wealth Gap/Economic Empowerment
- Rhode Island Black Business Association: Closing the Racial Wealth Gap/Economic Empowerment
- Rhode Island Black Heritage Society: Advancing Culturally Congruent Education/Education
- Sojourner House: Addressing the Negative Effects of Urban Renewal/Housing
- Woonasquatucket River Watershed Council: Addressing the Negative Effects of Urban Renewal/Advocacy
The United Way did not immediately provide a breakdown for how they have spent the rest of the funds thus far.
Rodney Davis, who chaired the Municipal Reparations Commission that wrapped up its work in 2022, said the group wanted to ensure the relatively small amount of reparations money reached the widest number of people. He supported the plan to allow people outside of the Black and Indigenous communities to access the funds.
“The Civil Rights movement didn’t just affect Black people, it affected the community surrounding it,” Davis said. “If we’re going to raise the river, other things are going to be raised up with it. And I’m not upset about that.”
The commission issued a report in August 2022 that served as the basis for the $10 million program.
“It wasn’t a lot of money,” Davis said, adding that other major institutions such as Brown University should join the reparations effort. He was pleased that Smiley said this money just scratches the surface.
“Without their support, this is just going to be something that we’re going to look back and say: ‘this was nice.’”
Steph Machado can be reached at steph.machado@globe.com. Follow her @StephMachado.