Connecting Communities®

During the COVID-19 pandemic, in 2021 the U.S. Department of Treasury deployed $46 billion to support housing stability. Without existing local and state infrastructure to quickly deploy these federal rental assistance dollars, community-based organizations (CBOs) across the country played a key role in helping ensure the funding reached households that needed it most.

On February 15, 2024, we hosted a Connecting Communities event featuring experts who will share groundbreaking tactics used by three CBOs across the country. Discover essential principles for effectively distributing aid to marginalized communities and learn strategies to enhance the capabilities of CBOs for future challenges.

This podcast explores the challenges of labor market disparities and economic inequality. Dr. Niki vonLockette shares insights into systemic discrimination and policies for equal employment opportunities.

Benefits cliffs create economic challenges for workers and employers alike. A benefits cliff may occur when an increase in income—from working more hours, getting a raise, or taking a new position—pushes a worker above the income eligibility limit for one or more public assistance programs, and the loss of assistance is greater than the value of the increase. This forces people to choose between their family's immediate financial best interest and their own longer-term wage growth and career advancement. These cliffs can also stymie employers seeking to hire workers and develop their skills through internal career pathway opportunities.

On October 12, 2023, we hosted a Connecting Communities webinar with experts exploring this economic challenge from the perspective of employers, the Federal Reserve, and community leaders who help families navigate public assistance programs and plan for career advancement opportunities. In this session, we learned about tools developed by the Atlanta Fed that can identify and inform mitigation strategies. We also heard about innovation pilots including Florida, North Carolina, Tennessee, and Washington D.C. that may inform the future efforts of state and community leaders working to develop solutions to the benefits cliff.

As we know, the labor market and disparities within it have notably changed since 2018. That's the last time the Federal Reserve System hosted a conference around uneven outcomes in the labor market. As we gear up for our next convening on this topic in February 2024, we're taking the opportunity to chat with speakers who joined us at the 2018 event. We're asking them What insights can you share as we take stock of the past five years of change in the labor market?

And what lessons learned should be consider as we look ahead to the future?

Community Development Financial Institutions (CDFIs) provide financial products and services to underserved markets where it may be difficult to access what traditional financial institutions offer. Every other year, the Fed conducts a survey of CDFIs to better understand the barriers and opportunities that they face. This year's survey sought input on various topics ranging from demand for products and product innovation. This year, 453 institutions responded to the Fed's 2023 CDFI Survey. Speakers from the Federal Reserve Banks of Atlanta, New York, and Richmond hosted a Connecting Communities webinar, sharing key findings from the survey and their thoughts about the road ahead for CDFIs. During this Connecting Communities webinar, speakers discussed the demand for CDFIs' products and services, challenges to meeting demand—including lending capital—and innovations in products and practices. Learn about CDFIs' approaches to tracking outcomes—and their limitations. Speakers discussed how the survey results help inform future Fed research initiatives. Speakers shared Fed research on CDFIs' use of secondary markets and financial leverage.

Workers are key to the country's economic success. Their voices are critical to conversations about understanding the labor market. Last year, the Federal Reserve held virtual focus groups across the US to find out how workers in lower-wage roles and job seekers with less than a bachelor's degree experienced the labor market during the pandemic.

During this Connecting Communities webinar, hear insights about how many workers are reshaping the workforce. The discussion addressed enhanced expectations of job quality and how workers are using skill development and self-investment to change their economic opportunities. During the event, Federal Reserve

Presidents Raphael Bostic from the Atlanta Fed and Patrick T. Harker from the Philadelphia Fed share their perspectives about this important topic.

How did inflation affect families last year? Did trends shift in the use of emerging financial products? This recent discussion with the Federal Reserve Board of Governors explores findings from the Survey of Household Economics and Decisionmaking (SHED). For the past decade, the SHED has provided insights into financial challenges families face. The latest report on the Economic Well-Being of U.S. Households in 2022 uncovers compelling data around various aspects of people's financial lives.

Underserved communities face significant challenges in achieving a full and equitable recovery after natural disasters. One reason is that these neighborhoods often lack access to services offered through disaster funds and the necessary insurance to protect their households. The Federal Reserve and Federal Emergency Management Agency (FEMA) shares how FEMA programs can help low- to moderate-income communities respond to these challenges. FEMA clarifies the role of the National Flood Insurance Program (NFIP) in recovery. Speakers also discuss how collaboration among faith communities, nonprofit organizations, local businesses, and economic partners through long-term recovery groups (LTRGs) is critical for rebuilding stronger communities.

Access to quality early childhood education (ECE) is critical to the well-being of communities and the economy. The pandemic further exposed existing issues, including how a lack of access to reliable and affordable childcare affects the parental workforce, yet also how financing challenges strain provider profitability.

On May 11, 2023, the Federal Reserve Banks of Boston, Minneapolis, and St. Louis hosted a Connecting Communities webinar exploring recent research around cost and affordability challenges, especially for workers needing nontraditional hours of care and financial constraints on the provider side. The event included a discussion of innovative solutions to help attract and retain ECE workers and sustain quality programs.

Small businesses are on the road to recovery, although hiring, supply chain disruptions, and rising costs remain persistent challenges. As small-business owners navigated these challenges through 2022, pandemic-related funding programs ended, and owners turned to other funding sources – including traditional financial institutions and their own savings. How are small businesses doing? How are they accessing credit, and what gaps remain? On April 13, the Federal Reserve Bank of Cleveland held a Connecting Communities webinar exploring new insights from the Federal Reserve Small Business Credit Survey (SBCS) 2023 Report on Employer Firms.