San Francisco approves recovery fund framework without committing public money

San Francisco officials have taken a formal step toward possible reparations for Black residents by approving a measure creating a special fund for financial reparations, though no city money has been set aside to support it.

If reported Through ABC 7 NewsThe ordinance, which passed unanimously by the Board of Supervisors on Dec. 16 and was signed by Mayor Daniel Lurie last week, establishes a reparations fund intended for African American residents who can demonstrate documented harm caused by past city policies. The fund is intended to receive future contributions but does not include an initial allocation from San Francisco’s budget.

Mayor Lurie said the city’s current financial outlook prevents her from dedicating public dollars to the effort. San Francisco faces a projected budget deficit of nearly $1 billion, limiting the country’s ability to expand new spending initiatives.

“Given these historic budget challenges, the city has no resources to allocate to this fund,” Lurie said in a statement, adding that his administration is open to providing private financing to eligible recipients if such contributions become available.

Supporters of the measure argue that the ordinance represents an important recognition of the city’s role in decades of harm inflicted on Black communities through discriminatory housing practices, economic exclusion and displacement. Yet some argue to warn that symbolism alone is not enough.

“I would argue that the city is responsible not only for investing in this fund, but also for supporting the recommendations of our plan in every way possible, including financial recovery.” said Eric McDonnell, former chairman of the African American Reparations Advisory Committee. “It’s a step in the right direction. It by no means demonstrates or represents a complete commitment to making something happen.”

McDonnell’s commission completed its three-year term in early 2024 after publishing a comprehensive 400-page report in 2023. The report included more than 100 recommendations aimed at addressing historical injustices, including a proposal for a one-time payment of $5 million to each eligible person. Under the commission’s framework, eligibility would be determined based on documented evidence of harm related to San Francisco’s policies.

Lurie acknowledged the work of the commission and community advocates, noting that discussions about reparations began before his administration. In his statement, he referenced long-term damage to neighborhoods such as the Western Addition and Bayview and highlighted his administration’s broader investments in public services for Black residents.

“For several years, communities across the city have been working with government to acknowledge the decades of damage to San Francisco’s Black community,” Lurie said. “If there is private funding that can legally be spent on this fund, we stand ready to ensure the funding reaches those who qualify.”

While the measure does not guarantee immediate payments, it does create a legal and administrative structure that supporters say could serve as a foundation for future recovery efforts. However, whether the fund ultimately delivers financial recovery may depend on the city’s budget recovery and the willingness of private donors to contribute.

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