Treasury ramps up review as it deploys funds

WASHINGTON — The Treasury Department is moving ahead with a formal racial equity review of the agency and its programs, putting in place an effort to ensure that economic fairness is prioritized throughout the Biden administration as it begins to disburse $1.9 trillion in relief money.

The initiative is expected to be led by Adewale Adeyemo once he is confirmed as deputy Treasury secretary, according to people familiar with the matter. It will be undertaken in close collaboration with Treasury Secretary Janet Yellen, who is making racial equity a centerpiece of her agenda as she oversees the disbursement of much of the stimulus package.

The review follows an executive order that President Joe Biden signed in January requiring federal agencies to pursue racial equity and to support underserved communities in their policies and programming.

Treasury is developing its own civil rights strategy and, as part of that, is working to ensure that financial assistance distributed through the latest relief legislation is allocated fairly. The White House noted in January that previous rounds of stimulus checks were sometimes slow to arrive to people of color. And minority business owners who did not have close ties to banks often had difficulty gaining access to the Paycheck Protection Program for small businesses.

All federal agencies are required to submit diversity and inclusion plans to the Office of Management and Budget this month, under the terms of the executive order.