Billions Invested, Black Workers Must Benefit: A Case Study of Place-Based Industrial Policy in Arizona and North Carolina

With more than $80 billion of federal funding flowing into place-based initiatives in high-growth industries, the United States has an opportunity to create real economic mobility for Black workers in emerging industries such as energy, advanced manufacturing, technology, and semiconductor production. This third brief in the Centering Black Workers in Emerging Industries series, entitled Billions Invested, Black Workers Must Benefit: A Case Study of Place-Based Industrial Policy in Arizona and North Carolina, highlights the importance of dedicated funding for regional initiatives that aim to connect Black workers with new, in-demand job opportunities. The brief also provides recommendations for prioritizing Black workers in the design and implementation of place-based policies. Read the executive summary below.

Place-based industrial policymaking seeks to bolster the economy by providing fiscal investments to specific regions, enhancing infrastructure, and spurring growth in high-demand industries including skilled trades, advanced manufacturing, and technology. Place-based industrial policies are a key component of the American Rescue Plan Act (ARPA) (2021), Infrastructure Investment and Jobs Act (IIJA) or Bipartisan Infrastructure Law (BIL) (2021), Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act (2022), and Inflation Reduction Act (IRA) (2022).

Collectively, the 117th Congress allocated over $80 billion for place-based industrial policies between 2021 – 2022. With federal funding flowing into place-based initiatives in high-growth industries, there is an opportunity to create real economic mobility for Black workers in emerging industries such as energy, advanced manufacturing, and technology. Past federal place-based industrial policy investments have done collateral damage like eliminating labor protections, minimum wage standards, and demolishing Black communities widening economic disparities. Black communities have yet to receive the full benefits of federal and place-based policy funding.

While the disbursement of funding is set to continue over the next decade, it is important to examine how these investments are impacting Black workers and the infrastructure of Black communities. This brief, the third in the Centering Black Workers in Emerging Industries series, is an early state assessment of implementation, risks, and challenges of place-based industrial policy funding. Additionally, this report examines the inclusion of Black workers and communities into place-based workforce development in emerging industries. We conducted interviews and site visits in Central North Carolina and Arizona. Upon analyzing the interviews, we compiled a list of key themes:

1. Delayed Investments Amid Continual Change and Uncertainty
   Constant shifts in political leadership, changing regulations, evolving industries, and ongoing proposal revisions create significant concerns of instability and uncertainty, and have slowed the dissemination of funding. Despite funding for ARPA, IIJA/BIL, CHIPS and Science, and IRA being authorized between 2021 and 2022, these investments are being distributed gradually throughout the decade, delaying immediate impact. The Trump administration has scrutinized funding for many of the programs established in these bills, often resulting in stalled distribution and slowed workforce efforts. The numerous policy and procedural changes made by the Administration has hindered job creation, job growth in high-demand industries, and the development, and implementation of place-based industrial policy initiatives. The slow dissemination of funding has also impacted the development of new educational standards, courses, and certificate programs. To maximize the impact, place-based industrial policy investments must be fully distributed and include targeted investments for Black communities.
2. Critical Programmatic Areas
   To close the skills gap and meet the demand of the job market in skilled trades, advanced manufacturing, and technology, short-term credentials and youth programming are expanding rapidly in Phoenix and Central North Carolina. These critical programmatic areas are key to supporting long-term economic growth and building the current and future workforce. Along with the rapid growth and development of workforce development initiatives, interviewees highlighted limited portability of short-term credentials, and the need for earnings transparency and evaluation metrics for program quality and participant outcomes. Stakeholders in both regions are working to improve program quality by developing standards to support credential portability and career mobility. Investing in critical programmatic areas, such as short-term credentials and youth programming, creates more opportunities for Black communities to benefit from historic workforce development investments.
3. Limited Collaboration Between Stakeholders and Fragmented Efforts Across Multiple Initiatives
   As multiple industrial policy initiatives are being developed simultaneously, there is limited collaboration among higher education institutions, employers, and workforce development programs. Despite having a common goal of preparing workers for the evolving workforce, stakeholders are operating in silos and lack universal standards. Currently, separate initiatives are being launched, generating duplicative efforts and inefficient engagement and recruitment strategies. The lack of collaboration and universal standards leaves workers inadequately prepared for diverse roles. Initiatives in both Central North Carolina and Phoenix lack engagement with Black community organizations, businesses, and workers. Without targeted outreach, Black workers and learners remain unaware about these new jobs and workforce development initiatives. For place-based industrial initiatives to be accessible and economically beneficial to Black communities, collaboration must intentionally break down silos and increase accountability for the economic value of new credentials in the job market.
4. Inadequate Data Systems
   Data infrastructure and collection requirements vary widely across initiatives and regions, limiting the ability to track progress or evaluate educational and workforce outcomes effectively. Currently, non-degree credentials programs are not mandated to collect program-level enrollment, retention, or post-completion wage data. Similarly, employer-led training programs may collect program data, but these data are not publicly available or accessible. As states continue to receive significant federal investments, the administration should require data reporting and provide fiscal support to enhance data infrastructure. Without adequate data systems and disaggregated program-level data by race, it is difficult to examine the educational and economic outcomes of Black workers and learners. All employers receiving federal funding should be required to disclose employee demographics to increase transparency and enable more adequate assessment of whether their hiring decisions and employment demographics reflect their surrounding community.
5. Disparities Driven by Anti-DEI Policies
   The elimination of several diversity, equity, and inclusion initiatives by the Trump administration is affecting Black workers’ access to careers and jobs related to industrial policy. Education, workforce, and industry stakeholders mentioned that the elimination of diversity, equity, and inclusion initiatives has inhibited intentional outreach and engagement with Black workers and businesses. There is an urgent need for targeted investments like money, intentional outreach strategies, and accountability safeguards to ensure Black workers and learners can access to quality jobs, competitive wages, and meaningful training opportunities.

Read the brief here.