Team 15 – U.S.

Urban Track Policy Memo

Executive Summary:
Our proposal seeks to address the problem of urban food deserts, which is a racial and
health equity issue that has been exacerbated by COVID-19. Previously implemented
initiatives have proven that institutionalized support has the potential to improve the
health of many of America’s underserved communities. In this proposal, the ​“Food
Equity Act​” seeks to implement grocery financing acts across the United States
through the state government level.​ This grocery financing proposal addresses
COVID-19 economic recovery by (1) creating jobs for the formerly incarcerated
and for unemployed food and restaurant industry professionals, and (2)
improving access to nutritious food in food deserts by eliminating the need for
expensive grocery delivery services and lengthy journeys via public
transportation. ​This state-level proposal builds off of previously successful examples
such as Oklahoma’s “Healthy Food Financing Act” and Pennsylvania’s state-level
“Fresh Food Financing Initiative.”

Background:
Studies have shown that it is becoming increasingly difficult to gain employment in U.S.
cities without a college education​1​. Thus, urban communities would greatly benefit from
an economic recovery solution that creates new jobs utilizing community members’
existing skill sets, and that do not impose higher education requirements.

One industry skill set particularly impacted by COVID-19 is that of the food and
restaurant industry which, perhaps unsurprisingly, is similar to the skills needed in
grocery stores. Studies have shown that it is much less costly on businesses and
employees alike when a person finds employment that matches their previously existing
skill set​2​. Moreover, both the restaurant and the grocery industries offer jobs to formerly
incarcerated people such as food preparation, cash register management, vendor
coordination, and customer service.

Online grocery shopping has become a necessity during the pandemic for older and
higher-risk populations. However, online grocery delivery is out of reach for low-income
individuals that cannot afford grocery delivery services and/or that rely on food stamps.
Because food deserts are often located in underserved neighborhoods where
community members do not own their own vehicles, their populations depend on public

1
​https://economics.mit.edu/files/16724
2
https://www.wsj.com/articles/hospitality-workers-are-pushed-into-new-careers-as-pandemic-begins-seco
nd-year-11613999342
transportation systems to get to and from grocery stores​3​. As a result, low-income
populations are still forced to expose themselves to risk on public transportation in order
to get the food they need to survive.

Recommendation:
This “​Food Equity Act​” recommends a state-level policy to every state in the U.S. that
does not currently incentivize new healthy food retailers that provide fresh food to
communities located in food deserts. Our recommendation combines aspects of
Oklahoma’s state-level “​Healthy Food Financing Act​” policy with characteristics of
Pennsylvania's state-level “​Fresh Food Financing Initiative​” to offer COVID-19 relief
funding to existing grocery stores near food deserts and to incentivize healthy food
retailers to invest in opening new locations​4​.

This recommendation would require state funding to establish a loan program for
independently-owned grocers, a financing act to support supermarket expansion into
low-income areas, and perhaps the creation of a public-private financing program
similar to the ​Food Trust​ established in Pennsylvania. Quantifiable goals this proposal
could measure includes the re-entry of individuals from the food and restaurant service
industry into the working economy and the number of individuals no longer living in a
food desert.

Analysis:
A report from the Bureau of Labor Statistics (BLS) for February 2021 shows that, in light
of COVID-19, more than 19,400 employees lost their jobs in the bar and restaurant
industry.​5​ Particular industries, namely: restaurants, services, tourism, and leisure have
been hit significantly harder in regards to unemployment than industries pertaining to
information and finance. The unemployment rate in metropolitan areas for December
2020 was higher than a year ago in 379 out of 389 of the United States’ metropolitan
areas.​6​ Data published in the journal ​Built Environment​ looks at the variables of obesity
and diabetes in relation to various fixed effects, and reveals how socioeconomic factors
are correlated to health.

3
​https://www.cnn.com/2020/06/09/business/food-deserts-coronavirus-grocery-stores/index.html
4
​https://www.agriculture.pa.gov/Food_Security/Pages/Fresh-Food-Financing-Initiative-COVID-19.aspx
5
​https://www.bls.gov/news.release/empsit.nr0.htm
6
​https://www.bls.gov/news.release/metro.nr0.htm
Although much emphasis has been placed on spatial factors when it comes to studying
urban food deserts, and remains an important consideration, this data suggests that the
solution is not as simple as placing more grocery stores on street corners. Lack of
access to nutritious food and equity has much more to do with the inability to​ afford
nutritious food, more than solely geographic proximity to a grocery store.​7​ More than
providing residents in communities with options to affordable food, our proposal seeks
to create long-term stability and economic growth, and seeks to prioritize employment of
members of marginalized communities affected by COVID-19.

Another barrier to employment, particularly after a prior layoff, is finding work in the
same sector and with the same level of education required for the job. On February 22,
2021, the Wall Street Journal published a story on the many restaurant workers now
laid off that are now looking to reinvent their careers and find work in a new sector.​8
Creating employment opportunities for these workers that do not require investment in a
new or different degree would allow them to delve back into work sooner, rather than
later.

7
https://www.ingentaconnect.com/content/alex/benv/2017/00000043/00000003/art00003;jsessionid=285e
2m8c6tct8.x-ic-live-03
8
https://www.wsj.com/articles/hospitality-workers-are-pushed-into-new-careers-as-pandemic-begins-seco
nd-year-11613999342
Implementation Plan:
This policy would be implemented at a state level, setting aside funding and loans for
the construction of new grocery stores and food retailers​9​. In conjunction with the
financing act, community groups similar to the Healthy Community Store Initiatives
(HCSI) would be able to expand their reach in the community, both providing healthy
affordable food while employing community members. We propose first establishing
community support through advocacy groups such as the HCSI in lower-income
communities or those disproportionately affected by the impact of COVID-19 on the
service industry​10​. Following the establishment of community support, we propose
lobbying state governments to pass an Act similar to the Oklahoma Healthy Food
Financing Act, which would allow not only for more affordable food options, but also
help to combat the unemployment crisis created by COVID-19. After the initial passage
of the policy, we propose re-visiting this act after 5 years.

9
​Healthy Food Financing Act
10
​http://www.tulsarealgoodfood.org/