The surprising way some states are trying to boost their economies: Paying people to move ther
For years, cities and states have competed for businesses wiht tax breaks and incentives. But a growing number are now trying something diffrent: paying people to move there.
These “relocation incentives” range from modest cash bonuses to considerable grants, and they’re popping up in places like West Virginia, Oklahoma, and even smaller towns across the country. The goal? to reverse population decline, fill labor shortages, and inject new life into communities that have struggled for decades.
How it works
The programs vary widely. Tulsa, Oklahoma, such as, offers $10,000 to remote workers who relocate there.West Virginia’s Ascend WV program provides $12,000 and a year of free outdoor recreation. Some towns offer free land or housing assistance.
Typically, applicants need to demonstrate they can work remotely or have a job lined up, and they commit to living in the area for a certain period – often a year or more.
Why now?
Several factors are driving this trend. The COVID-19 pandemic accelerated the shift to remote work, making it possible for people to live anywhere with a good internet connection. At the same time, many smaller cities and rural areas are facing demographic challenges, with younger people leaving for opportunities elsewhere.
“The pandemic really opened people’s eyes to the fact that they didn’t have to be tethered to expensive coastal cities to have a good career,” says Brian Chesky,CEO of Airbnb,which has tracked migration patterns.
Does it actually work?
Early results are promising. Tulsa has seen a significant influx of new residents thru its program, and many participants report a higher quality of life. West Virginia officials say Ascend WV has brought in skilled workers and boosted the local economy.
However, some experts caution that these programs are not a silver bullet. They can be expensive, and there’s no guarantee that newcomers will stay long-term.
“You’re essentially buying people’s time,” says demographer Kenneth Johnson. “the real challenge is creating a community that people want to stay in, not just visit.”
Despite the challenges, the idea of paying people to move is gaining traction as states and cities search for innovative ways to revitalize their economies and build a more lasting future.
## judge Rules Trump Management Must Continue Funding Consumer Financial Protection Bureau
A federal district court judge ruled Tuesday that the Trump administration must continue to seek funding for the Consumer Financial Protection Bureau, or CFPB, a watchdog agency the administration has been trying to dismantle through staffing and funding cuts.
The administration recently made a legal argument that as the agency gets its funding from the Federal Reserve, and as the Fed is technically operating at a loss, there are no valid funds for the CFPB.Judge Amy Berman Jackson rejected the argument, writing that this “woudl be tantamount to closing what is left of the Bureau.” This upholds an earlier injunction from jackson to ensure the agency would continue to exist as congressionally mandated, and to stop efforts to shutter it.
CFPB Funding Faces New Legal Challenge From Conservative Groups
Conservative groups are challenging the funding structure of the Consumer Financial Protection Bureau (CFPB), arguing the agency’s independence from congressional appropriations is unconstitutional. A lawsuit filed Tuesday by the Competitive Enterprise Institute and the 60 Plus Association claims the CFPB’s funding mechanism – drawing directly from the Federal Reserve’s earnings rather than relying on annual congressional funding – violates the Constitution’s Appropriations Clause.
This challenge mirrors arguments previously made, and a recent ruling by a federal appeals court questioned the CFPB’s funding model, though it stopped short of declaring it unconstitutional. The CFPB has argued its funding structure was intentionally designed to shield it from political interference, allowing it to more effectively protect consumers.
Separately, last week a coalition of 21 states and the District of Columbia joined together for a lawsuit to prevent the defunding of the agency. They argue that the administration is too narrowly interpreting which Fed funds can be used to support the agency – that they don’t have to be profits.
Representatives from the White House and the CFPB did not promptly respond to requests for comment.
the CFPB was created after the 2008 financial crisis to protect consumers against fraud and predatory practices; among its many duties it collects people’s complaints against businesses.It has long been a target of conservatives who say it’s too aggressive in enforcing consumer protection laws.
CFPB Director Rohit Chopra Faces Scrutiny over Agency’s Direction
The Consumer Financial protection Bureau, a watchdog agency created in the wake of the 2008 financial crisis, is facing increased scrutiny as Director Rohit Chopra pushes for stricter regulations on banks and financial companies. Critics argue his approach is overly aggressive and could stifle innovation, while supporters say it’s a necessary step to protect consumers from predatory practices.
Chopra,appointed by President Biden in 2021,has been a vocal advocate for stronger consumer protections. He’s focused on areas like credit card fees, “buy now, pay later” services, and data collection, arguing these practices often exploit consumers and contribute to financial instability.
“We’ve seen a proliferation of junk fees that are really just hidden costs that companies are imposing on consumers,” Chopra said in a recent interview. “We’re working to crack down on those fees and make sure people are getting a fair deal.”
A Shift in Focus
Under Chopra’s leadership, the CFPB has shifted its focus from simply enforcing existing laws to proactively writing new rules. This has included proposals to cap credit card late fees, which the agency estimates could save consumers $9 billion annually. The agency is also scrutinizing the practices of large tech companies that are increasingly involved in the financial sector.
Though, this more assertive approach has drawn criticism from industry groups and Republican lawmakers. They argue that the CFPB’s regulations are burdensome and could limit access to credit, particularly for small businesses and lower-income individuals.
“The CFPB is overstepping its authority and imposing regulations that will harm consumers and stifle economic growth,” said Rep. Patrick McHenry, chairman of the House Financial Services Committee.
Legal Challenges
The CFPB’s funding structure has also come under attack. The agency is funded by the Federal Reserve, rather than through congressional appropriations, which critics argue makes it less accountable to Congress. A recent Supreme Court case challenged the agency’s funding model, but the court ultimately ruled in favor of the CFPB, upholding its independence.
Despite the legal challenges, Chopra remains committed to his vision for the agency. He believes the CFPB has a crucial role to play in ensuring a fair and clear financial system.
“We’re not trying to eliminate risk,” Chopra said. “We’re trying to make sure that risk is properly managed and that consumers are not being taken advantage of.”
The debate over the CFPB’s direction is highly likely to continue as the agency moves forward with its regulatory agenda. The outcome will have significant implications for consumers, financial institutions, and the broader economy.