By Leslie Vasquez Guzman • Mayors Innovation Project
Wealth inequality in the United States has reached unprecedented levels, leaving millions of Americans struggling to achieve economic stability, much less access economic mobility. With stagnant wages and rising costs, the American Dream is increasingly out of reach for many. To counteract these trends, cities across the country are exploring policies that embed wealth-building opportunities within local economies, ensuring shared prosperity and long-term community resilience.
At the Mayors Innovation Project’s Winter 2025 Meeting, city leaders and policy experts convened to discuss strategies to advance local wealth and opportunity as part of our Advancing Local Wealth and Opportunity panel. Nairuti Shastry, Community Wealth Building Fellow at The Democracy Collaborative, spoke to specific elements of the organization’s Five Pillars of Community Wealth Building, including worker cooperatives, community land trusts, and community investment vehicles. She cited place-based examples from around the country, including Democratizing NOVA’s collaboration with Fairfax County and community partners to develop cooperative enterprises that help Latina women access entrepreneurship and wealth-building opportunities, as well as the People’s Economy Lab’s work with Seattle Public Utilities to shape procurement strategies that direct investments toward locally owned, climate-resilient infrastructure.
Caprichia Spellman, Director of the Office of Community Wealth Building in Richmond, VA, shared how Richmond prioritizes historically underserved populations through workforce initiatives tailored to local needs. She described how the city’s Office of Community Wealth Building—the first of its kind in the U.S.—has contributed to a one-third reduction in the city’s poverty rate since 2014. “The most effective strategies are location-based and tailored to each community’s unique needs. In Richmond, our focus has historically been on building a skilled workforce,” Spellman noted. Her team conducts environmental scans, community outreach, and systemic barrier analysis to ensure programs reflect residents’ lived experiences.
Rochester, MN’s commitment to equitable procurement took center stage as Mayor Kim Norton described how the city structures municipal contracts to foster local participation. By breaking large contracts into smaller projects and setting WMBE and DBE goals, Rochester enables local businesses—especially minority- and women-owned firms—to compete. The city has also implemented prevailing wage requirements and is transitioning to a new eComply/B2GNow software system to track workforce diversity and targeted business commitments. “We’re holding businesses accountable to ensure they’re meeting equity goals,” stated Mayor Norton. The city has also been using Community Co-Design to create opportunities for deeper engagement, putting members of vulnerable and impacted populations at the table when discussing and designing policies and programs that impact them.
Mayor Victoria Woodards outlined Tacoma, WA’s bold workforce development initiatives. The city’s Good Jobs, Great Cities program, in partnership with the National League of Cities and the U.S. Department of Labor, trains workers in high-demand fields such as green jobs, healthcare, and construction. Tacoma has also expanded 24/7 childcare access to support working families and launched the Growing Resilience In Tacoma (GRIT) guaranteed income program, providing direct cash assistance to low-income families. “Giving families that extra breathing room—whether it’s $500 a month—makes a huge difference,” Mayor Woodards explained. “It allows people to take small risks, pursue education, and move toward economic stability.”
Top Five Recommendations for City and Local Leaders
1. Mayors Must Serve as Champions and Conveners of Community Wealth Building
Mayors play a unique role in mobilizing residents, convening stakeholders, and advocating for structural change. As Nairuti Shastry noted, mayors can bring attention to community wealth-building models, align city agencies, and ensure policies support long-term economic empowerment. Cities like Richmond and Tacoma have demonstrated the impact of mayoral leadership in integrating equity-focused economic strategies.
2. Workforce Development Must Be Responsive to Local Needs and Prioritize Economic Mobility
A one-size-fits-all approach does not work. Cities must tailor workforce initiatives to their communities, meeting people where they are and addressing systemic barriers. Workforce development should not only promote financial inclusion but also prioritize economic mobility and long-term transformation, ensuring workers can access quality jobs with growth potential. Richmond’s Office of Community Wealth Building has successfully reduced poverty by emphasizing short-term training programs, living wage advocacy, and employer partnerships to create accessible career pathways.
3. Center Community Input and Ownership in Economic Development Strategies
Economic policies must reflect the needs of those they aim to serve—not just through input but by fostering long-term community control and ownership. Rochester’s community co-design process ensures that residents—not just city officials—shape economic policies. This approach has influenced programs like BIPOC homeownership initiatives and culturally responsive childcare solutions, helping communities build lasting assets and agency. “No more prioritizing the same ten people,” Mayor Norton emphasized.
4. Equitable Procurement is a Powerful Tool for Local Wealth Creation
City and anchor institutions can use procurement policies to significantly impact local economies. Rochester’s strategy of breaking large contracts into smaller ones allows local businesses to participate, fostering job creation and economic inclusion. Tracking equity goals through eComply/B2GNow software ensures that businesses remain accountable to their diversity commitments.
5. Cities Must Be Bold in Changing the Narrative Around Economic Justice
Guaranteed income, equitable wages, and worker ownership models often face political resistance. Tacoma’s GRIT program, which provides direct financial support to ALICE (Asset Limited, Income Constrained, Employed) families, has proven that even modest financial assistance can lead to increased job stability and economic mobility. Mayor Woodards stressed the importance of reframing the conversation: “We must put faces on this work to shift public perception.”