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San Francisco Creates Reparations Fund Framework, Leaves It Unfunded

City leaders cite a projected $1 billion budget shortfall and say any money would have to come from private donors or future appropriations.

Overview

  • Mayor Daniel Lurie signed the ordinance on December 23 after a unanimous Board of Supervisors vote on December 9 to establish a Reparations Fund based on the 2023 AARAC plan.
  • The measure sets up administration by the San Francisco Human Rights Commission and limits spending to implementing recommendations in the city’s Reparations Plan.
  • The ordinance authorizes private and philanthropic contributions and does not commit city dollars; any taxpayer-funded payouts would require separate legislation and a defined funding source.
  • The AARAC report includes a highly debated option of one-time $5 million payments to eligible Black residents, with eligibility criteria and implementation details still to be determined.
  • Analysts have cited multi‑billion‑dollar cost estimates, the city has roughly 46,000–50,000 Black residents, and local figures including NAACP leader Rev. Amos C. Brown have criticized the $5 million figure as arbitrary and raised concerns about false hopes.