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READ: How Systemic Inequities Kept Many Black Veterans From Building Black Prosperity

February 11, 2022
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For the Black veterans who received GI benefits, they only got 40% of what white veterans received.

Written by IAVA CEO and US Navy Veteran Jeremy Butler

Building Black prosperity is not the story of one Black person or one Black family, but the endeavor of generations of Black people. It’s not a tale of easy triumphs, but one of resilience. The barriers to this success are made up of countless instances of systemic breakages that have ripple effects, often compounding over generations. The racial inequities of the GI Bill are one such example.

The GI Bill, originally known as the Servicemen’s Readjustment Act, was signed into law by President Franklin D. Roosevelt in 1944. The bill made financial subsidies available to 16 million World War II veterans in the U.S. pursuing higher education, applying unemployment insurance or purchasing their first homes. The effects of the GI Bill granted unparalleled prosperity for American veterans and the economy for years to come. Yet, systemic inequities continued to serve as a gatekeeper for Black veterans — limiting access to these benefits and substantially increasing the inequalities between them and their white counterparts.

When Black veterans returned from war, they had to face the challenges of segregation, which created barriers to education and homeownership — essential tools for wealth building. Denying an entire population of Black people from opportunities to build wealth, created a huge racial wealth gap in postwar America, the effects of which can still be felt today.

Black veterans failed to receive equal education benefits compared to their white counterparts. Instead of granting them acceptance into four-year universities, the VA encouraged Black veterans to apply to vocational and non-degree institutions. 95% of Black veterans were forced to attend all-Black colleges. As a result, historically Black colleges and universities (HBCUs) had a high influx of applications from Black veterans, which then forced the HBCUs to turn away other prospective students. This caused a ripple effect for the Black community in receiving equal education and opportunity for generational wealth.

After WWII, our nation was met with a strong housing boom that represented the American Dream — but not for all Americans. White veterans under the GI Bill were able to take advantage of government-backed mortgages so they could purchase a home for their families. However, since the VA itself was unable to guarantee loans, Black veterans were subject to redlining, which denied or limited financial services to specific neighborhoods.

For the Black veterans who received GI benefits, they only got 40% of what white veterans received. Adjusted for inflation, these differences amounted to about a $170,000 difference in value per veteran. 

The negative effects many Black veterans faced under the GI Bill may seem irreversible, but there is still an opportunity to rectify these inequities. Iraq and Afghanistan Veterans of America’s (IAVA) flagship program, the Quick Reaction Force (QRF), is one of these examples. Over the past several years of operation, the number of Black veterans reaching out for assistance and connected to much-needed services has steadily risen more than 20% year over year, and we expect this increase to continue. This unique program offers 24/7 confidential peer-to-peer support, comprehensive care management and resource connections for all veterans and their families, no matter the era they served or their ethnic background.

On Veterans Day of 2021, the first-of-its-kind GI Bill Restoration Act was introduced. Representatives Jim Clyburn of South Carolina and Seth Moulton of Massachusetts introduced the bill in the House and a Senate bill was introduced by Sen. Rev. Raphael Warnock of Georgia, the son of a WWII veteran. This bill aims to provide the families of Black WWII veterans a benefit to use for college, home, or business ownership — opportunities to build wealth that they’d previously been excluded from.

While we will never be able to fully repay the heroes who fought for freedom from tyranny, this legislation represents a step in the right direction towards addressing the economic and civil rights injustices experienced by our Black veterans and their families.

The GI Bill Restoration Act is a first step to the change Black veterans have been fighting decades for. This Black History Month, it is critical to acknowledge the need to build on such legislation, to address the unjustified barriers to Black wealth, and advance opportunities to continually build Black prosperity.

This piece was originally published by Blavity on February 10, 2022.