Allentown in running to receive up to $50M
Federal grant would be used for ‘distressed area’ workforce development
Allentown is in the running for a competitive federal grant of up to $50 million that would help address high levels of unemployment in some city neighborhoods.
City officials announced Wednesday that Allentown is a finalist for a “Recompete” grant, a federal program via the CHIPS and Science Act of 2023 that will fund workforce development initiatives. Allentown was one of 22 cities selected as a finalist, out of 500 that applied, and will receive $500,000 to further flesh out its plans before a final deadline next year.
According to Allentown’s application, residents in the city’s poorest neighborhoods — between the First and Sixth wards and Franklin Park area — who are between the ages of 25 and 54 face an unemployment rate of 12.3%.
The city’s poverty rate is 23.3%, double the national rate of 11.5%. Despite a strong Lehigh Valley economy — a recent announcement from the U.S. Bureau of Economic Analysis puts the region’s Gross Domestic Product at $50.2 billion — Allentown residents have not been able to share equally in that success.
“The economy in general in our area is thriving if you’re talking about businesses and industries and the people working in those places,” said U.S. Rep. Susan Wild, D-7th District.
“The one thing we
haven’t really been able to crack is, how do we get people from areas where there is still unemployment to those jobs?”
According to Allentown Mayor Matt Tuerk, residents in the city’s poorest neighborhoods face three major barriers to employment: a lack of education and training, accessible child care and adequate transportation.
These gaps are particularly stark for people of color in Allentown: Only 38% of the Latino population in Allentown has “high access to opportunity,” compared with 78% of the city’s white population, according to the city’s application.
For example, 25% of 25to 54-year-old residents in the city’s poorest neighborhoods lack a high school degree, and around 1 in 3 do not have a car, even though 90% work outside of their immediate neighborhood.
If the city is selected for the full Recompete grant, it would make major investments to alleviate those three employment barriers, Tuerk said at a news conference Thursday morning.
“We know that the Lehigh Valley has a growing economy, there are excellent jobs available and we’re growing — people want to be in the Lehigh Valley,” Tuerk said. “We put this plan together, and our vision is clear …
“We will ensure that every resident of the city of Allentown has access to good jobs and an opportunity to actively participate in the labor force.”
Breaking down those employment barriers could look like expanding union apprenticeship programs for trade jobs, investing in “micro-transit” options like shuttles that could take Allentown residents to employers outside of the city, and subsidizing child care costs.
The city’s focus would be expanding access to health care and manufacturing jobs, which are growing sectors that employ one in every three Lehigh Valley workers.
Pennsylvania Sen. Bob Casey vowed to advocate for Allentown to be selected for the full grant.
“We’re not done yet,” Casey said. “We have more to do to make sure Allentown has the resources it needs, its people need, to get to work every day, to do their jobs.”
According to Tuerk, the city will start work “immediately” on the city’s next application for the $20 million-$50 million grant, which is due in April.
The city will find out late next year if it is selected for the full amount. The federal government will select four to eight of the 22 finalists to receive the larger award.