Obama’s Policy Agenda: Implications Obama’s Policy Agenda: Implications for Black Communities and the Role for Black Communities and the Role

of Philanthropyof Philanthropy

john a. powelljohn a. powell

Director, Kirwan Institute for the Study of Race and EthnicityDirector, Kirwan Institute for the Study of Race and EthnicityWilliams Chair in Civil Rights & Civil Liberties, Moritz College of LawWilliams Chair in Civil Rights & Civil Liberties, Moritz College of Law

ABFE Annual Board RetreatABFE Annual Board RetreatFebruary 10, 2009February 10, 2009

New Orleans, LANew Orleans, LA

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Presentation OverviewPresentation Overview The current recession – racially disparate effectsThe current recession – racially disparate effects

The need for racially sensitive policiesThe need for racially sensitive policies Targeted universalismTargeted universalism

Assessing the current stimulus packageAssessing the current stimulus package Implications for communities of colorImplications for communities of color How do the issues connect?How do the issues connect?

Looking aheadLooking ahead Opportunities for foundationsOpportunities for foundations

The Current Recession: The Current Recession: Racially Disparate EffectsRacially Disparate Effects

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““In this economy, people of color benefit the In this economy, people of color benefit the least compared to their white counterparts least compared to their white counterparts

during economic booms and suffer during economic booms and suffer disproportionally more during economic disproportionally more during economic

downturns. As W.E.B. DuBois once said, downturns. As W.E.B. DuBois once said,

‘‘To be a poor man is hard, but to be a poor To be a poor man is hard, but to be a poor race in a land of dollars is the very bottom of race in a land of dollars is the very bottom of

hardships.’”hardships.’”

http://www.arc.org/images/fr08/compact/ARC_compact_economy.pdf

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The Current RecessionThe Current Recession

The current recession has affected everyone – but not all to the The current recession has affected everyone – but not all to the same degree.same degree.

Although the U.S. has been in a recession for more than a year, Although the U.S. has been in a recession for more than a year, people of color have been in a recession for nearly people of color have been in a recession for nearly fivefive years and years and have entered a depression during the current economic crisis.have entered a depression during the current economic crisis.

Although the black poverty rate fell 8.5% from 1989 to 2000, the Although the black poverty rate fell 8.5% from 1989 to 2000, the African American family poverty rate increased 2.8% from 2000 to African American family poverty rate increased 2.8% from 2000 to 2007.2007.

Poverty rates for Hispanic families grew .5% from 2000 to 2007. Poverty rates for Hispanic families grew .5% from 2000 to 2007. The Hispanic family poverty rate (19.7%) is roughly twice that The Hispanic family poverty rate (19.7%) is roughly twice that of the overall poverty rate (9.8%).of the overall poverty rate (9.8%).

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The Recession in Racial TermsThe Recession in Racial Terms

   2007:42007:4 Projected 2010:2Projected 2010:2

Unemployment Rate (overall)Unemployment Rate (overall) 4.8%4.8% 10.2%10.2%

By race/ethnicity:By race/ethnicity:   

WhiteWhite 4.3%4.3% 8.9%8.9%

BlackBlack 8.6%8.6% 18.2%18.2%

HispanicHispanic 5.9%5.9% 13.1%13.1%

Teenagers:Teenagers:   

AllAll 16.4%16.4% 30.1%30.1%

BlackBlack 30.9%30.9% 55.7%55.7%

HispanicHispanic 16.3%16.3% 35.7%35.7%

Unemployment rates by demographic group projected to 2010

Mishel, Lawrence and Heidi Shierholz. “Without Adequate Public Spending, A Catastrophic Recession for Some.” EPI Issue Brief # 248. 1-13-09

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The Recession in Racial TermsThe Recession in Racial TermsThe Future of The Future of UnderemploymentUnderemployment without Recovery Package without Recovery Package

Mishel, Lawrence and Heidi Shierholz. “Without Adequate Public Spending, A Catastrophic Recession for Some.” EPI Issue Brief # 248. 1-13-09

8.1%

13.3%11.4%

17.7%

27.8%

25.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

All Black Hispanic

Un

der

emp

loym

ent

Rat

e

2007 2010

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Black/White Median Income Ratio

60.9%

63.5%

60.2%

58.0%

59.0%

60.0%

61.0%

62.0%

63.0%

64.0%

1995 2000 2005

Year

Med

ian

In

com

e R

atio

This ratio was at a record high of 63.5% in 2000. Once the This ratio was at a record high of 63.5% in 2000. Once the 2001 recession and weak economic recovery hit, these gains 2001 recession and weak economic recovery hit, these gains were lost and have yet to be recovered.were lost and have yet to be recovered.

Austin, Algernon. “What a Recession Means for Black America.” EPI Issue Brief # 241. 18 Jan. 2008.

The Need for Racially Sensitive The Need for Racially Sensitive PoliciesPolicies

Targeted UniversalismTargeted Universalism

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You say crisis, I say opportunityYou say crisis, I say opportunity ““You never want a serious crisis to go to waste," Rahm You never want a serious crisis to go to waste," Rahm

Emanuel, Mr. Obama's new chief of staff, told a Emanuel, Mr. Obama's new chief of staff, told a Wall Street Wall Street JournalJournal conference of top corporate chief executives conference of top corporate chief executives A crisis creates a sense of urgencyA crisis creates a sense of urgency No one can deny that the system is brokenNo one can deny that the system is broken An opportunity to learn what worked and what did notAn opportunity to learn what worked and what did not

Civil War Civil War Reconstruction Reconstruction Depression Depression New Deal New Deal 2008-2009 Recession 2008-2009 Recession ? ?

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Learning From Our Mistakes?Learning From Our Mistakes?

If we fail to pay attention to populations and the resources that If we fail to pay attention to populations and the resources that communities possess, we are likely to repeat the mistakes of communities possess, we are likely to repeat the mistakes of the New Deal.the New Deal. White Americans may benefit disproportionatelyWhite Americans may benefit disproportionately

How do we avoid the New Deal mistakes?How do we avoid the New Deal mistakes? We must be intentional. We must be intentional. Policies should be targeted and programs should be Policies should be targeted and programs should be

structured so that they reach certain populations and structured so that they reach certain populations and communities.communities.

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We Need A New ParadigmWe Need A New Paradigm Targeted policies alone are not desirable because they appear to Targeted policies alone are not desirable because they appear to

show favoritism toward a certain group, thus stigmatizing them.show favoritism toward a certain group, thus stigmatizing them.

Universal policies alone are not useful.Universal policies alone are not useful. They fail to account for the fact that people are situated They fail to account for the fact that people are situated

differently in the economic and social landscape of societydifferently in the economic and social landscape of society ““Universal” policies are often based on a non-universal Universal” policies are often based on a non-universal

standard standard • Ex: Social Security: able-bodied white males working Ex: Social Security: able-bodied white males working

outside the home full-time for payoutside the home full-time for pay

Thus… Thus… Targeted UniversalismTargeted Universalism

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Targeted UniversalismTargeted Universalism

This approach supports the needs of the particular while This approach supports the needs of the particular while reminding us that we are all part of the same social fabric.reminding us that we are all part of the same social fabric.

• Universal, yet captures how people are differently situated Universal, yet captures how people are differently situated

• Inclusive, yet targets those who are most marginalizedInclusive, yet targets those who are most marginalized

Example goal: Every school as a performing schoolExample goal: Every school as a performing school

• What does each school need to get there?What does each school need to get there?

• What does each student, family, teacher, community need?What does each student, family, teacher, community need?

• What are their strengths and constraints?What are their strengths and constraints?

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Targeted UniversalismTargeted Universalism

Targeted Universalism recognizes racial disparities and the Targeted Universalism recognizes racial disparities and the importance of eradicating them, while acknowledging their importance of eradicating them, while acknowledging their presence within a larger inequitable, institutional frameworkpresence within a larger inequitable, institutional framework

Targeted universalism is a common framework through which to Targeted universalism is a common framework through which to pursue justice.pursue justice. A model which recognizes our linked fateA model which recognizes our linked fate A model where we all grow togetherA model where we all grow together A model where we embrace collective solutionsA model where we embrace collective solutions

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Ex: Economic Stimulus PackageEx: Economic Stimulus Package

The economic stimulus package fails to directly account for race.The economic stimulus package fails to directly account for race.

Yet, race is a key component of many major economic issues.Yet, race is a key component of many major economic issues. Ex: Subprime/Foreclosure crisis:Ex: Subprime/Foreclosure crisis:

• People of color are more than three times as likely as People of color are more than three times as likely as whites to have subprime mortgages. whites to have subprime mortgages.

• Borrowers of color were more than 30 percent more likely Borrowers of color were more than 30 percent more likely to receive a higher-rate loan than white borrowers, to receive a higher-rate loan than white borrowers, even even after accounting for differences in risk.after accounting for differences in risk.

Besides considering race-sensitive design, Besides considering race-sensitive design, we must be concerned about the impacts. we must be concerned about the impacts.

Rogers, Christy. “Subprime Loans, Foreclosure, and the Credit Crisis – A Primer.” Dec. 2008.

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Assessing the Economic Stimulus PlanAssessing the Economic Stimulus Plan

The Implications for Communities of ColorThe Implications for Communities of Color

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Analyzing the Stimulus and Our ValuesAnalyzing the Stimulus and Our Values

Questions to consider:Questions to consider:

What are our public values for the next century? What are our public values for the next century?

Does the stimulus package advance fair investment in all Does the stimulus package advance fair investment in all people and communities?people and communities?

Does it promote economic and environmental sustainability? Does it promote economic and environmental sustainability?

Does it have transparent controls for personal, institutional, Does it have transparent controls for personal, institutional, and regulatory accountability?and regulatory accountability?

Is it sensitive to the needs of racially marginalized groups Is it sensitive to the needs of racially marginalized groups and communities?and communities?

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Money AllocationMoney Allocation

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Assessing the Stimulus PackageAssessing the Stimulus Package

Projections indicate that the stimulus package will not impact Projections indicate that the stimulus package will not impact all groups to the same degree.all groups to the same degree.

People are not only spatially segregated, but segregation also People are not only spatially segregated, but segregation also occurs by sector.occurs by sector.

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Stimulus: Projected Distribution of Jobs by RaceStimulus: Projected Distribution of Jobs by Race

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Projected Percent Share of Stimulus-Created Jobs by Race

White or Other 69.6%

African American

10.1%Hispanic or Latino

15.9%

Asian 4.4%

African Americans are underrepresented relative to their presence in the African Americans are underrepresented relative to their presence in the U.S. population (13%). Hispanics/Latinos, also at 13% of the U.S. U.S. population (13%). Hispanics/Latinos, also at 13% of the U.S.

population, are overrepresented.population, are overrepresented.

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These overestimates/underestimates are often industry specific. Consider the construction industry, a key component to the stimulus plan’s infrastructure building:

Call out of constructionsector jobs by race

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Applying Targeted Universalism Applying Targeted Universalism

These “shovel ready” stimulus package jobs “can benefit These “shovel ready” stimulus package jobs “can benefit unemployed people of color and women if specific incentives and unemployed people of color and women if specific incentives and enforcement tools are enacted to ensure fair access to these enforcement tools are enacted to ensure fair access to these opportunities. opportunities.

All stimulus projects should require local resident hiring goals All stimulus projects should require local resident hiring goals and create a link to community-based groups as the first line and create a link to community-based groups as the first line contact for construction jobs. contact for construction jobs.

• Local hiring requirements are a proven approach to bring Local hiring requirements are a proven approach to bring jobs to under-represented constituencies in construction jobs to under-represented constituencies in construction trades. These requirements can be applied to permanent trades. These requirements can be applied to permanent jobs as well.” jobs as well.”

Center for Social Inclusion. “Economic Recovery for Everyone: Racial Equity and Prosperity.” Talking Points.

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http://www.racewire.org/

An alternative An alternative analysis: analysis:

Comparing Comparing projected projected

state state spending with spending with

the racial the racial demographics demographics of each stateof each state

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Seeing the ConnectionsSeeing the Connections Attempts to address singular issues in isolated ways will Attempts to address singular issues in isolated ways will

ultimately failultimately fail

Targeted interventions must recognize the interconnected Targeted interventions must recognize the interconnected nature of our structuresnature of our structures

While many policy areas can appear distinct, we must think While many policy areas can appear distinct, we must think of them collectively.of them collectively. Ex: TransportationEx: Transportation

• Is this an urban policy issue?Is this an urban policy issue?• An environmental issue? An environmental issue? • A jobs/economic issue?A jobs/economic issue?

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Systems Theory Highlights These RelationshipsSystems Theory Highlights These Relationships

Systems TheorySystems Theory is a transdisciplinary model that focuses on a is a transdisciplinary model that focuses on a web of relationships and processes and not on linear, singular web of relationships and processes and not on linear, singular causation or the intent of one or even a few individuals.causation or the intent of one or even a few individuals.

In a complex systems model, actions and inactions have In a complex systems model, actions and inactions have multiple effects, and the delayed or distant consequences are multiple effects, and the delayed or distant consequences are often different from more proximate effects.often different from more proximate effects.

From a systems perspective, causation is cumulative and From a systems perspective, causation is cumulative and mutual.mutual. Outcomes are caused by many actors’ and institutions’ Outcomes are caused by many actors’ and institutions’

actions and inactions over time and across domains.actions and inactions over time and across domains. Outcomes are the result of causes that accumulate over time Outcomes are the result of causes that accumulate over time

and across domains.and across domains.

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Visualizing Systems TheoryVisualizing Systems Theory

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System InteractionsSystem Interactions

Source: Barbara Reskin. http://faculty.uwashington.edu/reskin/

We must pay attention to how people are situated by looking at

multiple indicators

and the relationships

that exist between

those indicators.

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Ex: Connecting Housing Policy & Ex: Connecting Housing Policy & Education PolicyEducation Policy

With lower profits and decreased access to capital, fewer With lower profits and decreased access to capital, fewer corporations are investing in affordable housing (construction or corporations are investing in affordable housing (construction or renovation) while homelessness is on the rise.renovation) while homelessness is on the rise.

The economic recovery bill passed by the House (1-28-09) “would The economic recovery bill passed by the House (1-28-09) “would temporarily allow state housing agencies to exchange some temporarily allow state housing agencies to exchange some credits for federal grants, which they would then distribute to credits for federal grants, which they would then distribute to developers to support the production of affordable rental developers to support the production of affordable rental housing.”housing.”

This is an opportunity for us to re-think how we target LIHTC This is an opportunity for us to re-think how we target LIHTC projects to high-opportunity areas.projects to high-opportunity areas.

Fischer, Will. “Exchange Plan in House Recovery Bill Offers Best Fix for Low-Income Housing Tax Credit.” Center on Budget and Policy Priorities. February 2, 2009.

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Ex: Connecting Housing Policy & Ex: Connecting Housing Policy & Education PolicyEducation Policy

LIHTC often LIHTC often concentrates housing concentrates housing units in racially units in racially isolated school isolated school districts.districts.

This exacerbates the This exacerbates the educational educational challenges facing low-challenges facing low-income children, income children, particularly children of particularly children of color.color.

Looking AheadLooking Ahead

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Racially Sensitive PoliciesRacially Sensitive Policies

We must embrace a systems thinking perspective when forming We must embrace a systems thinking perspective when forming policies.policies.

What do racially sensitive policies look like?What do racially sensitive policies look like?

TargetedTargeted: They recognize the nature of our interconnected : They recognize the nature of our interconnected structures / larger inequitable, institutional framework.structures / larger inequitable, institutional framework.

Pay attention to situatednessPay attention to situatedness: They account for the fact that : They account for the fact that people are situated differently in the economic and social people are situated differently in the economic and social landscape of society.landscape of society.

Driven by outcomesDriven by outcomes: It may seem great if unemployment is cut in : It may seem great if unemployment is cut in half, but if all the jobs go to white males, serious problems half, but if all the jobs go to white males, serious problems remain.remain.

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Racially Sensitive Policies (con’t)Racially Sensitive Policies (con’t)

What do racially sensitive policies look like?What do racially sensitive policies look like?

TransparentTransparent: - Transparency allows for gauging progress and : - Transparency allows for gauging progress and making corrections if necessary.making corrections if necessary.

Multi-facetedMulti-faceted: Incentivize a systems approach. Reorient how : Incentivize a systems approach. Reorient how we think about policy.we think about policy.

Include people of color in the processInclude people of color in the process: Their input is vital.: Their input is vital.

Serve as a bridge to the next economyServe as a bridge to the next economy: These policies should : These policies should be the stepping stones for the future.be the stepping stones for the future.

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Race-Sensitive Policy Analysis of the StimulusRace-Sensitive Policy Analysis of the Stimulus

How do we make the stimulus fair, sustainable, accountable?How do we make the stimulus fair, sustainable, accountable?

Incentives for inclusion of people of colorIncentives for inclusion of people of color

Investment in public transit (prioritize projects that connect Investment in public transit (prioritize projects that connect people to jobs)people to jobs)

Grants and loans for small and minority-, women-, and Grants and loans for small and minority-, women-, and community-disadvantaged businessescommunity-disadvantaged businesses

Collect data by race and gender to understand impacts of Collect data by race and gender to understand impacts of economic recovery policyeconomic recovery policy

Wiley, Maya. “Economic Recovery for Everyone: Racial Equity and Prosperity,” Center for Social Inclusion, 12/2008.

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Opportunities for PhilanthropyOpportunities for Philanthropy

The stimulus offers a once-in-a-generation opportunity to The stimulus offers a once-in-a-generation opportunity to influence federal and state policy.influence federal and state policy.

Short term:Short term: Foundations need to shape and direct the flow of money.Foundations need to shape and direct the flow of money.

• Intervene in the public dialogue:Intervene in the public dialogue: Targeting the flow of stimulus money dispersed to statesTargeting the flow of stimulus money dispersed to states Connecting education and housing policy through the Connecting education and housing policy through the

targeted use of LIHTC fundstargeted use of LIHTC funds

Draw on your experience and researchDraw on your experience and research• Present a clear, informed perspective regarding communities Present a clear, informed perspective regarding communities

of color that have been devastated by the economic recessionof color that have been devastated by the economic recession

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Opportunities for PhilanthropyOpportunities for Philanthropy Long termLong term::

Employ strategic communications regarding raceEmploy strategic communications regarding race• Help push national dialogue to overcome the common binary of Help push national dialogue to overcome the common binary of

(1) we’re in a post-racial world where race ‘doesn’t matter’; (2) (1) we’re in a post-racial world where race ‘doesn’t matter’; (2) we’re stuck in the past where race is ‘everything’we’re stuck in the past where race is ‘everything’

• Emphasize productive discussions around race that thoughtfully Emphasize productive discussions around race that thoughtfully inform policy design and advocacyinform policy design and advocacy

Capacity buildingCapacity building• Increase the participation of marginalized groups in policy designIncrease the participation of marginalized groups in policy design• Improve data collection, monitoring, and evaluation of state and Improve data collection, monitoring, and evaluation of state and

federal programsfederal programs

Legal advocacyLegal advocacy

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Questions or Comments? Questions or Comments? For More Information, Visit Us Online:For More Information, Visit Us Online:

www.KirwanInstitute.orgwww.KirwanInstitute.org

AppendixAppendix

Obama’s Policy Agenda – Obama’s Policy Agenda – Selected notes from Selected notes from www.whitehouse.govwww.whitehouse.gov

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Economy – Economy – ‘ ‘American Recovery and Reinvestment Plan’American Recovery and Reinvestment Plan’

Double the production of alternative energy in the next 3 yearsDouble the production of alternative energy in the next 3 years

Modernize more than 75% of federal buildings; improve the energy Modernize more than 75% of federal buildings; improve the energy efficiency of 2 million American homesefficiency of 2 million American homes

Make the immediate investments necessary to computerize all of Make the immediate investments necessary to computerize all of America’s medical recordsAmerica’s medical records

Equip schools, community colleges, and public universities with Equip schools, community colleges, and public universities with 21st century classrooms, labs, and libraries 21st century classrooms, labs, and libraries

Expand broadband across AmericaExpand broadband across America

Invest in the science, research, and technology that will lead to Invest in the science, research, and technology that will lead to new medical breakthroughs, new discoveries, and entire new new medical breakthroughs, new discoveries, and entire new industries industries

http://www.whitehouse.gov/agenda/economy/

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Urban PolicyUrban Policy Create a White House Office on Urban PolicyCreate a White House Office on Urban Policy

Fully fund the Community Development Block GrantFully fund the Community Development Block Grant

Increase access to capital for underserved businessesIncrease access to capital for underserved businesses

Strengthen core infrastructure, including roads and bridgesStrengthen core infrastructure, including roads and bridges

Increase the supply of affordable housing throughout metropolitan Increase the supply of affordable housing throughout metropolitan regionsregions

Reduce recidivism by providing ex-offender supportsReduce recidivism by providing ex-offender supports

Foster healthy communities – playgrounds, parks Foster healthy communities – playgrounds, parks

http://www.whitehouse.gov/agenda/urban_policy/

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EducationEducation ““Zero to Five Plan”- a comprehensive plan that places emphasis on Zero to Five Plan”- a comprehensive plan that places emphasis on

early care and education so children are ready to enter early care and education so children are ready to enter kindergartenkindergarten

Expand Early Head Start and Head StartExpand Early Head Start and Head Start Increase access to affordable, high-quality child care and after Increase access to affordable, high-quality child care and after

school programsschool programs

Reform No Child Left Behind – lessen emphasis on standardized Reform No Child Left Behind – lessen emphasis on standardized teststests

Make math and science education a national priorityMake math and science education a national priority

Address the dropout crisisAddress the dropout crisis

Simplify the application process for financial aid in higher edSimplify the application process for financial aid in higher edhttp://www.whitehouse.gov/agenda/education/

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HealthcareHealthcare

Strengthen employer coverage, make insurance companies Strengthen employer coverage, make insurance companies accountable, and ensure patient choice of doctor and care without accountable, and ensure patient choice of doctor and care without government interference government interference

Provide affordable, accessible health care for all Americans, build Provide affordable, accessible health care for all Americans, build on the existing health care system, and use existing providers, on the existing health care system, and use existing providers, doctors, and plansdoctors, and plans

Promote public health - Require coverage of preventive servicesPromote public health - Require coverage of preventive services

Make health insurance work for people and businesses, not just Make health insurance work for people and businesses, not just insurance and drug companiesinsurance and drug companies

Reduce costs and save a typical American family upReduce costs and save a typical American family up to $2,500to $2,500

http://www.whitehouse.gov/agenda/health_care/

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EnvironmentEnvironment Invest in alternative and renewable energy, end our addiction Invest in alternative and renewable energy, end our addiction

to foreign oil, address the global climate crisis and create to foreign oil, address the global climate crisis and create millions of new jobsmillions of new jobs

Put 1 million Plug-In Hybrid cars -- cars that can get up to 150 Put 1 million Plug-In Hybrid cars -- cars that can get up to 150 miles per gallon -- on the road by 2015, cars that we will work miles per gallon -- on the road by 2015, cars that we will work to make sure are built here in Americato make sure are built here in America

Ensure 10% of our electricity comes from renewable sources Ensure 10% of our electricity comes from renewable sources by 2012, and 25% by 2025by 2012, and 25% by 2025

Implement an economy-wide cap-and-trade program to Implement an economy-wide cap-and-trade program to reduce greenhouse gas emissions 80% by 2050 reduce greenhouse gas emissions 80% by 2050

http://www.whitehouse.gov/agenda/energy_and_environment/