Sudden shifts in industry, trade dynamics, and supply chains have disproportionately affected certain communities most exposed to disruption. As Chinese imports surged in the early 2000s, American factories shuttered and manufacturing communities lost millions of jobs. And as the energy transition continues accelerating, communities reliant on traditional energy sources like coal and oil face similar risks. These disruptions have spurred a resurgence in place-based policies, which have directed billions of dollars in federal funding to communities around the country. But are these funds reaching the communities experiencing the most intense disruptions?
According to a recent report from the Brookings Institute, place-based policies are indeed helping affected communities adjust to a new economic reality. Counties undergoing past and future disruptions, including heavily trade-impacted counties and fossil fuel communities, have received a disproportionate share of funding from new place-based industrial policies. The report finds that private sector investment, spurred by place-based policies, has flowed to legacy manufacturing communities at a rate far exceeding their economic output and population share. Similarly, the most carbon-dependent counties make up only 5% of the nation’s GDP but have received 15% of private investment since 2021. As the disruptions of a rapidly evolving economy continue to concentrate on a small number of counties, place-based investments play an important role in revitalizing industries and transitioning communities to a new economic reality.
