As I described in the Making of Ferguson, the federal government maintained a policy of segregation in public housing nationwide for decades. This was as true in northeastern cities like New York as it was in border cities like Baltimore and St. Louis. In 1994, civil rights groups sued the Department of Housing and Urban Development (HUD), alleging that HUD had segregated its public housing in Baltimore and then, after it had concentrated the poorest African American families in projects in the poorest neighborhoods, HUD and the city of Baltimore demolished the projects, and purposely relocated the former residents into other segregated black neighborhoods. An eventual settlement required the government to provide vouchers to former public housing residents for apartments in integrated neighborhoods, and supported this provision with counseling and social services to ensure that families’ moves to integrated neighborhoods would have a high likelihood of success. Although the program is generally considered a model, it affects only a small number of families, and has not substantially dismantled Baltimore’s black ghetto.
In 1970, declaring that the federal government had established a “white noose” around ghettos in Baltimore and other cities, HUD Secretary George Romney proposed denying federal funds for sewers, water projects, parkland, or redevelopment to all-white suburbs that resisted integration by maintaining exclusionary zoning ordinances (that prohibited multi-unit construction) or by refusing to accept subsidized moderate-income or public low-income housing. In the case of Baltimore County, he withheld a sewer grant that had previously been committed, because of the county’s policies of residential segregation. It was a very controversial move, but Romney got support from Vice President Spiro Agnew, who had been frustrated by unreasonable suburban resistance to integration and mixed income developments when he had been the Baltimore County Executive and governor of Maryland. In a 1970 speech to the National Alliance of Businessmen, Agnew attacked attempts to solve the country’s racial problems by pouring money into the inner city as had been done in the Johnson administration. Agnew said that he flatly rejected the assumption that “because the primary problems of race and poverty are found in the ghettos of urban America, the solutions to these problems must also be found there… Resources needed to solve the urban poverty problem—land, money, and jobs—exist in substantial supply in suburban areas, but are not being sufficiently utilized in solving inner-city problems.”
-From Richard Rothstein’s essay at the Economic Policy Institute, examining “a century of public policy designed, consciously so, to segregate and impoverish its black population. A legacy of these policies is the rioting we have seen in Baltimore.”