San Francisco Mayor Daniel Lurie has signed an ordinance that sets up a new “Reparations Fund,” a move that could one day allow eligible Black residents to receive up to $5 million each for past discrimination and displacement, according to Fox News.
The ordinance was approved by the San Francisco Board of Supervisors earlier this month and was quietly signed by Lurie just two days before Christmas. There was no public announcement from the mayor’s office at the time.
While the move creates a legal structure for the fund, it does not promise any payments and does not set aside any money right now.
San Francisco Mayor signs reparations fund ordinance
According to Fox News, the ordinance only lays the groundwork for the fund. It does not allocate city money or guarantee that anyone will receive reparations. According to the ordinance, the fund could be supported through private donations, foundations, and other non-city sources. Meanwhile, any plan to use taxpayer money would need new legislation, a clear funding source, and the mayor’s approval.
Mayor Lurie made it clear that city money will not be used, especially as San Francisco faces a massive budget shortfall. According to the ordinance, the Reparations Plan looks at different ways to offer restitution, compensation, and rehabilitation to people who are Black or descendants of people who were enslaved. This also includes those who have suffered proven harm while living in San Francisco.
It refers directly to a 2023 report prepared by the San Francisco African American Reparations Advisory Committee, also known as AARAC. This committee was appointed by the city to study the issue and suggest possible solutions. One of the most talked-about ideas in the AARAC report is a recommendation that eligible Black residents receive a one-time payment of $5 million.
The report studied the long-term harm faced by Black residents in the city and suggested financial compensation as one possible remedy. According to US Census data, about 46,000 Black residents currently live in San Francisco.
Mayor cites $1 billion budget deficit
San Francisco is currently dealing with a $1 billion budget deficit. Because of this, Lurie said taxpayer dollars would not be put into the reparations fund. “I was elected to drive San Francisco’s recovery, and that’s what I’m focused on every day,” Lurie said in a statement to Fox News Digital. “We are not allocating money to this fund, with a historic $1 billion budget deficit, we are going to spend our money on making the city safer and cleaner.”
The AARAC report argues that Black San Franciscans have been harmed for decades by city-led policies that caused residential displacement and racial discrimination.
Beyond the proposed $5 million payment, the report suggests several other steps. These include creating a guaranteed annual income in accordance with the area’s median income and setting up new city agencies, such as an Office of Reparations, to manage and oversee these programs.
The report also supports major housing acts, including rental assistance, help with homeownership, and city-backed funds to buy property along Black business corridors. It further recommends investing millions of dollars into Black-owned businesses across the city.
At the state level, California lawmakers have tried to pass reparations-related bills but have not succeeded so far.
