Today, the U.S. Department of the Treasury released a fact sheet highlighting investments in the Latino community. This announcement comes during Hispanic Heritage Month and underscores the contributions of Latinos to the U.S. economy, along with benefits from President Biden's economic agenda for Latino families and businesses.
When President Biden and Vice President Harris assumed office amidst the COVID-19 pandemic, they faced a heightened crisis in underserved communities, including Latinos. The administration focused on delivering a broad-based economic recovery over the past four years, which has expanded opportunities for Latinos.
Latinos comprise about 20% of the U.S. population, approximately 65 million people. In 2021, Hispanic-owned companies employed 3 million individuals with an annual payroll exceeding $124 billion.
The Biden-Harris Administration’s efforts have led to significant improvements for Latino workers:
"The Biden-Harris Administration’s economic agenda has created 5 million jobs for Latino workers—achieving a historically low 5.5% Latino unemployment rate through August 2024, down from 8.6% when the Biden-Harris Administration took office."
Average annual real wages for Latinos increased by 4% from December 2019 to June 2024. Additionally, there was a notable rise in Latino business ownership and self-employment rates between 2019 and 2024.
Efforts to support Latino small businesses include Treasury's State Small Business Credit Initiative (SSBCI), providing capital support through various programs:
"Treasury began to announce awards for the Investing in America Small Business Opportunity Program...support innovative, high-impact models of providing underserved and very small companies with access to financial advisory services."
In government procurement efforts:
"Treasury’s contracts to Latino-owned businesses have increased by 87%, from $100 million in FY2020 to $187 million in FY2023."
The Economic Opportunity Coalition (EOC) launched by Vice President Harris aims at addressing economic disparities with significant investments placed into Community Development Financial Institutions (CDFIs).
Treasury's Emergency Capital Investment Program (ECIP) invested heavily in minority depository institutions benefitting Latino communities:
"This investment is expected to significantly benefit Latino communities...resulted in $4.5 billion of lending...including many start-ups."
Further initiatives like expanding Child Tax Credits and housing assistance programs were introduced under plans like the American Rescue Plan.
During Filing Season 2024, IRS piloted Direct File enabling free online tax returns submission directly with IRS:
"Direct File is one of the ways the IRS is helping taxpayers get their maximum refunds as quickly as possible."
Lastly, Puerto Rico received substantial federal aid post-pandemic:
"Puerto Rico governments received approximately $4 billion...to respond to health and economic impacts."
These initiatives underscore ongoing efforts by Treasury towards bolstering financial stability among Latinos while reducing historic disparities across various sectors.
