In a White House press release, the Trump administration signed an executive order with guidelines aimed at focusing federal resources on those “opportunity zones” that actually have concrete needs and not on downtown areas where investment is more costly and economic development demands are much lower.
The Trump administration announced that it is making an ongoing effort to rebuild the spending system, noting that under orders signed by previous administrations, “federal agencies were instructed to give first consideration to locating facilities in central business districts.”
This was often a waste of resources, since these districts were often the most expensive areas in the urban centers, resulting in increased spending for taxpayers and sinking federal investment in areas that often did not need economic development.
At the same time, the most vulnerable areas and the most unprotected communities have proportionally lower investment costs, and since more structural needs are concentrated, investments there have a much greater impact on society as a whole.
Through this executive order, President Trump is committed to use all government resources to help struggling communities, while optimizing taxpayer dollars.
During his administration, President Trump created the White House Council on Revitalization and Opportunity, which currently assists struggling communities that have been severely affected by the CCP Virus pandemic by identifying local issues and seeking concrete, rapid and effective solutions.
In terms of international issues and their immediate impact on society, the Trump administration is putting an end to the disastrous trade deals that eliminated jobs from U.S. cities and sent them overseas, leaving many of these cities devastated and without job opportunities.
The Opportunity zones are part of a program of designation and investment created by the Jobs and Tax Reduction Act of 2017, which seeks to promote certain investments in lower income areas by granting tax advantages.
The purpose of this program was to put to work private capital that would otherwise be blocked due to lack of interest in investing in certain low-income areas, in part, due to taxes.
According to the White House statement, since its enactment by President Trump, nearly 9,000 opportunity zones have been designated across the country, including nearly 35 million Americans.
“As of the end of 2019, opportunity zones have attracted $75 billion in funds and driven $52 billion of new investment in economically distressed communities, creating at least 500,000 new jobs,” according to an executive order issued on Aug. 25.
Private equity investments in businesses in the opportunity zones were nearly 30 percent higher than investments in businesses in similar areas that were not designated as opportunity zones.
As a result of these new investments, it is estimated that approximately 1 million Americans will be lifted out of poverty.