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Federal spending has the capacity to perpetuate racial inequality, not simply through explicit exclusion, but through choices made in the legislative and institutional design of spending programs. Drawing on the lessons of New Deal and postwar social programs, this Essay offers an account of the specificfeatures offederal spending that give it salience in structuring racial arrangements. Federal spending programs, this Essay argues, are relevant in structuring racial inequality due to their massive scale, their creation of new programmatic and spending infrastructures, and the choices made in these programs as to whether to impose explicit inclusionary norms on states and localities. Exploring these features has relevance for understanding the current stimulus. Key aspects of the stimulus entrench funding and programmatic structures that promote racial inequality, defer to states and localities rather than advance explicit civil rights rules and norms, and miss key opportunities to innovate to promote racial inclusion and equity. Yet, this Essay argues that even with these limitations, the stimulus presents opportunities for civil society groups to learn from the lessons of New Deal and postwar programs by using the stimulus to promote racial inclusion and equality. Indeed, this Essay shows that the magnitude of the stimulus is generating a new set of laws and regulatory institutions designed to promote transparency and accountability in federal spending. These interventions, this Essay suggests, provide promise for interrupting the mechanisms through which federal spending perpetuates inequality, and for leveraging the stimulus to advance racial inclusion.

This is an address made by Raymond Nakai to the Junior Chamber of Commerce in Phoenix, Arizona. Nakai is informing participants about the current state of Navajo people. Many Navajo are relocating from the reservation to cities for employment. Navajo are then facing racial prejudice along with other challenges and return to the reservation, where there are no employment opportunities. Nakai observes that Navajo people are watching the civil rights movement with Black Americans for the outcome. Raymond Nakai is discouraging all in becoming part of social movements that stand against the United States. BIOGRAPHICAL NOTE: Raymond Nakai, a Navajo Indian, was born in 1918 in Lukachukai, Arizona, on the Navajo Reservation. Raymond Nakai is noted as being the first modern Navajo political leader serving as Chairman of the Navajo Nation from 1963-1971. As chairman, the issues most important during his tenure were self determination in Navajo Education, reservation unemployment, developing Navajo economy, further development of the tribal government and improving relations with the federal government and surrounding states. Nakai had much unprecedented success as Navajo Tribal Chairman: In 1967 the Navajo Nation Bill of Rights was created, in 1968 Navajo Community College opened being the first tribally controlled community college, the Tribal Scholarship Trust was developed, relations with off reservation natural resource companies began, he was supportive of religious freedom of the Native American Church on the Navajo Reservation. Raymond Nakai led an active personal and political life and was an innovative leader for the Navajo People. The Raymond Nakai Collection contains material documenting his activities as Chairman of the Navajo Nation from 1963 - 1971.