State legislatures play a pivotal role in the overall governance of a state’s economy and the well-being of its constituents. Each of the 50 state legislatures and the current 7,383 state legislators provide the essential roots for growing prosperous and economically vigorous communities. Additionally, municipalities and counties are instrumental in the implementation of governance through policies, programs, and services. Over 3,000 county governments have the daily responsibility of prioritizing community and economic development, housing, human services and more.  

Collectively, both state and local government officials have the opportunity to equip families —especially low-income, BIPOC families—to build financial well-being, prosper and thrive in their everyday lives. Specifically in 2023, there is an immense opportunity for states and localities to work together to advance equitable policy in the areas of housing, financial security, taxation, consumer protections and workers’ rights.  

With the addition of 4 trifecta states —Maryland, Massachusetts, Michigan, and Minnesota—the urgency to maximize on the political landscape moment has grown, propelling a new era of change agency in these policy areas forward. Thus far in 2023, we have witnessed exciting progressive momentum with the passage and introduction of legislation in multiple states that will benefit families on EITC/CTC expansion, affordable housing, match savings, and consumer protections. We have also witnessed bipartisan efforts in multiple states on paid family and medical leave, tax credits for affordable housing and the reduction of property taxes.  

The question does remain on the timeline and impact of potential legislation and emphasis on racial equity, but the anticipation has mounted, further elevating the power of the states.  

In 2023, Prosperity Now will continue to focus on state and local policies to create systemic change with a lens on the structural inequity and racially unjust practices that continue to hinder financial progress for Black and Brown families across generations. We look forward to further amplifying zoning reform, diving into analysis around homeownership retention as well as the financial barriers post re-entry for formerly incarcerated individuals, and more engagement on innovative policy solutions like guaranteed income and Baby Bonds. This moment leaves room for a movement to align policymakers and advocates on addressing racial wealth inequality and challenging the proximity to affluence and privilege that has remained a pillar of financial fortune in the U.S.