Outgoing President Joe Biden is set to sign an executive order on Sunday (January 19) to direct government resources to economically distressed areas, a day before handing over the White House to President-elect Donald Trump.
The order focuses on so-called “left-behind communities,” prioritising federal support for areas grappling with economic distress, industrial decline, and natural disasters.
The initiative is designed to build on key infrastructure, energy, and technology investments made during Biden’s tenure and assist Trump as he prepares to oversee these programs.
An estimated 15 per cent of Americans — around 50 million people — live in distressed ZIP codes marked by high poverty, unemployment, abandoned homes, and declining businesses, according to analysts.
In the last four years, the Biden administration has directed significant funding to these areas, including $54 billion for “Energy Communities” in coal, oil, and gas regions; $525 million for job training programs; $210 million for six new tech hubs; and billions in infrastructure spending.
Biden’s order aims to institutionalise a “whole-of-government” approach to assist these communities. It establishes a “No Wrong Door” policy to help them access federal resources and directs federal agencies to identify long-term economic development and infrastructure funding for areas recovering from natural disasters.
“It’s not splashy. It’s just fulfilling his determination to help left-behind communities, particularly in the heartland, make comebacks,” said White House economic adviser Lael Brainard.
The Commerce Department under Biden has also awarded $700 million for tech hubs to expand the benefits of the technology sector beyond traditional centres like Silicon Valley and Boston.
Impact Shorts
More ShortsIn a statement, Biden reflected on his administration’s efforts, saying they “made historic investments to help left-behind communities, such as distressed areas, factory towns, and coal communities, turn setbacks into comebacks.”
The order locks in lessons learned during Biden’s term, Brainard added, and ensures “the best chance of success” for these communities.
President Trump, who in 2018 signed an executive order to address challenges in distressed areas, has vowed to focus on economic growth during his second term, including cutting regulations and raising tariffs.
With inputs from agencies