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Unspent Covid $$ to fund minority-owned businesses in Burlington

Burlington’s ‘Empowerment Fund’ will favor minority-owned businesses for left-over COVID-19 funds

By Michael Bielawski

Grant funds originally intended to compensate for COVID-19-related hardships will be distributed via Burlington’s Office of Racial Equity, Inclusion, and Belonging (REIB) and prioritizing the development of small businesses owned by or working with minorities.

“Launched to uplift BIPOC (Black, Indigenous, and People of Color) residents, small businesses, non-profits, and community-based organizations in Burlington, the program aims to stimulate innovation, promote economic growth, and foster positive change within the community,” reads a City release on Dec. 17.

The “Empowerment Grant Program” is the source. The City’s website says the program is “dedicated to promoting equity, access and empowerment for Black and Brown communities in Burlington by putting resources directly into the hands of BIPOC people and people who serve these populations.”

The funds are remnants of the federal “American Rescue Plan Act” intended to help navigate the shutdowns of COVID-19.

European/Americans need not apply?

On the application for the funds, it says “Applicants must fall into one of these categories” and it lists “BIPOC identified residents”, “small business owners”, or “organizations or individuals currently engaged in work that predominantly supports Black and Brown people in Burlington.”

A statement from REIB says, “We are thrilled to witness such enthusiasm and commitment from the Burlington community. The diverse range of applications reflects the creativity and resilience of our local organizations and businesses.”

Federal money

In a city document on how to apply for the grants it also states who pays for them.

“The Empowerment Grant Program is funded through the American Rescue Plan Act (ARPA) funds provided to the City of Burlington through the Corona Virus State and Local Fiscal Recovery Funds (SLFRF),” it states.

It continues, “Grants will be awarded up to $10,000, and applicants must use these funds for work within the City of Burlington to address public health and economic impacts on households, populations, or classes (i.e., groups) that experienced or continue to experience pandemic impacts.”

Ethics and legality?

The use of municipal funds for political activism is generally prohibited by law. That Burlington created the activist group it is working with puts The Queen City in a unique scenario.

The ACLU states, “While donations are generally unlawful, there are exceptions for grassroots activism and policy change at the local level.”

Western City, a publication for elected officials in California, suggests there should be a separation between municipal efforts and activism.

“While local agencies have the authority to directly lobby state and federal officials, the law does not allow public agencies to use public funds for grassroots lobbying. Spending public funds on grassroots lobbying is banned under the same theory that prohibits the use of public funds to influence voters in an election,” it states.

A study titled “Understanding Governmental Activism” by the University of Amsterdam in 2017 noted a developing trend of municipal governments supporting NGOs (non-government organizations) and SMOs (social movement organizations).

“A striking feature of these cases is the role of politicians, civil servants and governmental organizations in organizing protest and resistance against policies proposed by other levels or branches of government,” the study states.

In Burlington’s case, the SMO (the Office of Racial Equity, Inclusion, and Belonging) is a municipal creation. The study notes by 2017, governments were working with these groups in some cases to organize protests.

“We would actually expect them to alter or redress policies through political parties, alumni networks, lobby activities or negotiations to which they have ample access, but surely not to stage protest and collaborate with SMOs or NGOs,” it states.

A “more equitable” Burlington?

The city’s release also states, “The Empowerment Grant Program underscores REIB’s commitment to addressing systemic inequities and empowering marginalized voices. The funding will be allocated to projects and programs that demonstrate potential for impactful outcomes, fostering a more equitable and thriving Burlington.”

The author is a writer for the Vermont Daily Chronicle

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