Did America Pay Reparations? How They Took Them Back & The Path to True Repair

By Michael Mitchell

The debate over reparations for Black Americans has been ongoing for decades, but many Americans remain unaware that the U.S. government has, in fact, paid reparations before—only to take them back. From broken promises during Reconstruction to economic policies that systemically disadvantaged Black communities, America has continually undermined Black progress. The question remains: How can the nation fix this injustice without relying on diversity, equity, and inclusion (DEI) initiatives, which former President Donald Trump disbanded?

The History of Reparations and Their Reversal

One of the first instances of reparations came in the form of Special Field Order No. 15, issued by Union General William T. Sherman in 1865. This order promised 40 acres and a mule to newly freed Black families, offering them a chance at economic independence. However, President Andrew Johnson reversed the order after Abraham Lincoln’s assassination, returning the land to former Confederate owners.

Another example came in 1988, when the U.S. formally apologized and paid reparations to Japanese Americans who were unjustly interned during World War II. This showed that America is capable of rectifying past wrongs when there is political will. Yet, despite 250 years of slavery, followed by Jim Crow laws and systemic discrimination, no similar national compensation has been made to Black Americans.

How America Took Reparations Back

Even when progress was made, it was quickly undone:

• The Freedman’s Bank Collapse (1874): The Freedman’s Bank was created to help formerly enslaved people build wealth, but corruption and mismanagement led to its failure. Over 61,000 Black depositors lost savings worth $3 million (over $70 million today).

• The GI Bill Discrimination (1944): While white veterans used GI Bill benefits to buy homes and attend college, Black veterans were often denied access due to redlining and segregation, preventing wealth accumulation.

• Urban Renewal & Highway Construction (1950s-1970s): Many thriving Black communities, such as Tulsa’s Greenwood District and Detroit’s Black Bottom, were destroyed under the guise of “urban renewal,” displacing Black families and businesses.

• Mass Incarceration & the War on Drugs (1980s-Present): Disproportionate sentencing laws and over-policing devastated Black communities, leading to economic stagnation and generational poverty.

Fixing Systemic Issues Without DEI

DEI programs have been criticized for being performative rather than addressing deep systemic issues. Instead of relying on DEI, America can take the following steps to create real change:

1. Economic Investment in Black Communities: Direct funding for Black-owned businesses, access to capital, and incentives for banks to invest in Black communities can counteract past discrimination.

2. Homeownership & Land Access: Expanding access to homeownership through grants and low-interest loans, along with restoring land taken through discriminatory policies, can close the racial wealth gap.

3. Education & Debt Relief: Funding HBCUs, expanding financial aid, and forgiving student debt for those affected by historical discrimination can help level the playing field.

4. Criminal Justice Reform: Ending cash bail, reducing sentences for nonviolent offenses, and providing rehabilitation programs can reduce the impact of mass incarceration.

5. Guaranteed Basic Income & Reparations Funds: A structured reparations program—modeled after the GI Bill but with equitable access—could provide Black Americans with financial stability and opportunities for long-term wealth-building.

The Path Forward

True repair requires structural changes, not just symbolic gestures. The United States must acknowledge the long-standing economic oppression of Black Americans and implement targeted policies that correct these injustices. America has the resources and precedent to fix these issues—it just needs the political will.

Works Cited

• DuBois, W.E.B. Black Reconstruction in America, 1860-1880. New York: Free Press, 1935.

• Katznelson, Ira. When Affirmative Action Was White: An Untold History of Racial Inequality in Twentieth-Century America. W.W. Norton, 2005.

• Rothstein, Richard. The Color of Law: A Forgotten History of How Our Government Segregated America. Liveright, 2017.

• West, Cornel. Race Matters. Beacon Press, 1993.

Bibliography

DuBois, W.E.B. Black Reconstruction in America, 1860-1880. New York: Free Press, 1935.

Hannah-Jones, Nikole. The 1619 Project: A New Origin Story. One World, 2021.

Katznelson, Ira. When Affirmative Action Was White. W.W. Norton, 2005.

Rothstein, Richard. The Color of Law. Liveright, 2017.

West, Cornel. Race Matters. Beacon Press, 1993.