Trump Budget Cuts Threaten Black Economy

While the latest jobs report shows a slight dip in the Black unemployment rate, dropping to 7.1% in March from 7.7%, experts are sounding the alarm. Critics warn that President Donald Trump’s proposed budget for Fiscal Year 2027 could significantly worsen economic disparities for Black Americans, particularly through cuts to programs deemed ‘woke.’

Encouraging Signs, Lingering Concerns

Andre Perry, a researcher at The Brookings Institution, acknowledges the encouraging decline in the Black unemployment rate but cautions against over-optimism. ‘The unemployment rate is still troublesome as there seem to be fewer available jobs overall and fewer people seeking them,’ Perry told theGrio. He suggests that month-to-month changes can obscure the broader economic trajectory.

Angela Hanks, chief of policy programs at The Century Foundation, echoed these concerns. ‘While this month’s decline in the Black unemployment rate is welcome, it is still nearly a point higher than it was a year ago and double the white unemployment rate,’ she stated. Hanks pointed out that proposed domestic cuts, combined with previous reductions in healthcare, food assistance, and education, alongside the ongoing war in Iran, threaten to drive Black unemployment higher in the long term.

The ‘Cuts to Woke Programs’ Initiative

President Trump’s FY2027 budget proposal includes a 10% cut to discretionary spending and a record $500 million increase in military spending. Notably, the White House released a ‘Cuts to Woke Programs’ list, targeting initiatives aimed at boosting Black employment and entrepreneurship. These cuts include the elimination of the Minority Business Development Agency (MBDA).

The administration justified eliminating the MBDA by claiming it funded ‘divisive and discriminatory projects’ and limited awards based on race. The White House specifically highlighted $3 million previously awarded to a national Black Lives Matter organization. Furthermore, the budget proposes significant cuts to various racial equity programs, impacting environmental justice, housing assistance, healthcare research, and education.

Impact on Community Development and Families

The proposal also includes eliminating the Community Development Financial Institutions (CDFI) Fund, with the White House referencing former Vice President Kamala Harris’s involvement in its Equitable Recovery Program. During the Biden-Harris administration, CDFI investments were crucial for bolstering community banks that issue loans to Black-owned businesses, which often face higher denial rates from larger institutions.

Brandon Weathersby, spokesperson for American Bridge 21st Century, criticized the budget, stating, ‘Trump’s economy has added fewer than 300,000 jobs in the past year, and the unemployment rate for Black Americans is still at pandemic-era levels.’ He argued that the proposed cuts would gut programs essential for families and the American Dream, contrasting this with the administration’s significant spending on the war in Iran.

The very programs the Trump administration rails against as ‘woke,’ normal households all across the country simply see as critical to their survival. — Brandon Weathersby, American Bridge 21st Century

Weathersby concluded, ‘Instead of feeding families, this administration is prioritizing dropping bombs in the Middle East.’ The MAGA agenda’s priorities, he suggests, are now plainly visible, prioritizing war over the well-being of American families.