EXECUTIVE OFFICE OF THE PRESIDENT 

OFFICE OF MANAGEMENT AND BUDGET 

WASHINGTON, D.C. 20503 

July 20, 2021 

M-21-28 

MEMORANDUM FOR THE HEADS OF DEPARTMENTS AND AGENCIES 

FROM: Shalanda D. Young, Acting Director, Office of Management and Budget 

Brenda Mallory, Chair of the Council on Environmental Quality 

Gina McCarthy, National Climate Advisor 

SUBJECT: Interim Implementation Guidance for the Justice40 Initiative 

President Biden is committed to securing environmental justice and spurring economic 

opportunity for disadvantaged communities that have been historically marginalized and 

overburdened by pollution and underinvestment in housing, transportation, water and 

wastewater infrastructure, and health care. In Executive Order 14008,

1 the President 

directed the Director of the Office of Management and Budget (OMB), the Chair of the 

Council on Environmental Quality (CEQ), and the National Climate Advisor, in 

consultation with the White House Environmental Justice Advisory Council (WHEJAC), 

to jointly publish guidance on how certain Federal investments might be made toward a 

goal that 40 percent of the overall benefits of such investments flow to disadvantaged 

communities – the Justice40 Initiative. The Justice40 Initiative is a critical part of the 

Administration’s whole-of-government approach to advancing environmental justice. 

The following Interim Implementation Guidance for the Justice40 Initiative (“guidance” 

or “interim guidance”) provides the initial recommendations pursuant to section 223 of 

Executive Order 14008,2 and supports the Administration’s comprehensive approach to 

advancing equity for all in line with Executive Order 13985.

3 The Executive branch 

should implement this guidance in accordance with existing authorities in order achieve 

the 40-percent goal. 

Summary of Interim Implementation Guidance for the Justice40 Initiative 

This interim guidance includes a set of actions required of agencies that manage covered 

Justice40 programs. These actions include identifying the benefits of covered programs, 

determining how covered programs distribute benefits, and calculating and reporting on 

reaching the 40-percent goal of the Justice40 Initiative. This interim guidance provides 

implementation direction to an initial set of covered programs under the Justice40 

Initiative. Additional guidance is forthcoming. The interim guidance applies to all entities 

with covered programs, including those agencies with potential covered programs listed 

in Appendix B. 

1 Tackling the Climate Crisis at Home and Abroad, 86 Fed. Reg., 7619 (Feb. 1, 2021). 2 Supra note 1, at 7632. 3 Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, 

86 Fed. Reg., 7009 (Jan. 25, 2021). 
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Interim Agency Justice40 Implementation 

I. Interim Definition of Disadvantaged Communities 

II. Covered Programs 

III. Examples of Benefits of Covered Programs 

IV. Calculating Benefits 

V. Reporting 

VI. Pilot to Maximize Benefits to Disadvantaged Communities 

I. Interim Definition of Disadvantaged Communities 

Further guidance to agencies on how to define disadvantaged communities for the 

purposes of the Justice40 Initiative4 will be released later this year, concurrent with the 

establishment of a geospatial Climate and Economic Justice Screening Tool being 

developed by CEQ, in partnership with the United States Digital Service (USDS). This 

new tool will include interactive maps with indicators to assist agencies in defining and 

identifying disadvantaged communities. 

Until such time when further guidance is provided, agencies should consider using, as 

appropriate, the following indicators of disadvantaged communities to implement the 

goals of the Justice40 Initiative utilizing existing data sources and indices that are 

currently used by programs serving low income, vulnerable, and underserved 

communities: 

• Community – Agencies should define community as “either a group of 

individuals living in geographic proximity to one another, or a geographically 

dispersed set of individuals (such as migrant workers or Native Americans), 

where either type of group experiences common conditions.”5 

• Disadvantaged – Agencies should consider appropriate data, indices, and 

screening tools to determine whether a specific community is disadvantaged 

based on a combination of variables that may include, but are not limited to, the 

following: 

o Low income, high and/or persistent poverty 

o High unemployment and underemployment 

o Racial and ethnic residential segregation, particularly where the 

segregation stems from discrimination by government entities 

o Linguistic isolation 

o High housing cost burden and substandard housing 

4 Executive Order 14008 uses the phrase “disadvantaged communities,” and this term has been used in 

existing Federal and state programs to prioritize funding for environmental justice. Some community 

members and advocates prefer alternative terminology, and specifically the use of “overburdened and 

underserved communities.” Until subsequent guidance can address the question of the most appropriate 

terminology, this memorandum relies on the language used in Executive Order 14008. 5 CEQ, Environmental Justice: Guidance under the National Environmental Policy Act (Dec. 10, 1997), 

available at https://ceq.doe.gov/docs/ceq-regulations-and-guidance/regs/ej/justice.pdf. 

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o Distressed neighborhoods 

o High transportation cost burden and/or low transportation access 

o Disproportionate environmental stressor burden and high cumulative 

impacts 

o Limited water and sanitation access and affordability 

o Disproportionate impacts from climate change 

o High energy cost burden and low energy access 

o Jobs lost through the energy transition 

o Access to healthcare 

In determining which variables to consider, agencies should consider the statutory 

authority for covered programs. In addition to the above definition of disadvantaged 

communities, geographic areas within Tribal jurisdictions should be included. 

II. Covered Programs 

Agencies should work with OMB, as outlined in section IV, to review and determine 

whether Federal programs fall within the scope of the Justice40 Initiative. Agencies 

should contact their OMB Resource Management Office or email EJ@omb.eop.gov to 

consult on the determination of covered programs. 

A. Covered Program. A “covered program” is a Federal Government program 

that makes covered investment benefits in one or more of the following seven 

areas: 

i. Climate change 

ii. Clean energy and energy efficiency 

iii. Clean transportation 

iv. Affordable and sustainable housing 

v. Training and workforce development (related to climate, natural 

disasters, environment, clean energy, clean transportation, housing, 

water and wastewater infrastructure, and legacy pollution reduction, 

including in energy communities6) 

vi. Remediation and reduction of legacy pollution 

vii. Critical clean water and waste infrastructure 

B. Covered Investments. A “covered investment” is a Federal investment in one 

or more of the following categories: 

i. Federal financial assistance as defined at 2 CFR 200,7 including both 

Federal grants as well as other types of financial assistance (including 

loans, credit, guarantees, or direct spending/benefits); 

ii. Direct payments or benefits to individuals; 

iii. Federal procurement benefits (acquisition of goods and services for the 

Federal government’s own use); 

6 Energy communities, as discussed in Executive Order 14008, include coal, oil, and gas and power plant 

communities. 

7 2 CFR 200 Subpart A §200.1 (Uniform Administrative Requirements, Cost Principles, and Audit 

Requirements for Federal Awards) defines Federal financial assistance. 

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iv. Programmatic Federal staffing costs (e.g. federal pay for staff that provide 

technical assistance); and 

v. Additional federal investments under covered programs as determined by 

OMB. 

When appropriate and within existing statutory authorities, eligible investments of 

covered programs include: FY 2021 enacted appropriations, supplemental appropriations, 

prior year carryover from unobligated balances, and (when they become available) future 

fiscal year appropriations. 

III. Examples of Benefits of Covered Programs 

Benefits include direct and indirect investments (and program outcomes) that positively 

impact disadvantaged communities. 

Table 1 provides a summary of additional examples of benefits of covered investments 

identified by the WHEJAC and the White House Environmental Justice Interagency 

Council (IAC) to be considered by agencies when determining the benefits of covered 

program. 

Table 1 

Category Example Benefits When Applied for (or within) 

Disadvantaged Communities 

Climate Change 

• Reduction of greenhouse gas (GHG) 

emissions and local air pollutants8 

• Creation of community resilience plans that 

specifically include addressing needs of 

disadvantaged communities 

• Increased technical assistance and 

community engagement of disadvantaged 

communities 

• Increased flood mitigation Benefits 

• Hectares of floodplain restored 

• Hectares of wetlands restored 

• Green stormwater infrastructure 

• Urban flood risk mapping addressing 

the distribution of socially vulnerable 

communities and risks 

8 For example, program expenditures to reduce air pollution generated by one state or locality that benefit 

“down wind” disadvantaged communities or in, such as, installing a control device on an incinerator that 

reduces exposure to harmful pollutants in a disadvantaged community in a neighboring state. 

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• Increased urban heat island effect mitigation 

benefits 

• Increased acres of greenspace 

restored 

• Increased tree and vegetation cover 

and sustainable shade coverage 

• Increased access to and advancement of 

public health warnings (weather and 

preparedness messages) translated into 

multiple languages 

Clean Energy and Energy 

Efficiency 

• Increased energy efficiency programs and 

resources 

• Deployment of clean energy, including 

renewable community energy projects 

• Establishment of community microgrids 

• Reduction of energy burden (e.g. the share of 

household income spent on home energy 

costs) 

Clean Transportation 

• Improvement in public transportation 

accessibility, reliability, and options 

• Reduction of exposure to harmful 

transportation-related emissions 

• Access to clean, high-frequency 

transportation 

• Access to affordable electric vehicles, 

charging stations, and purchase programs 

• Increased bicycle and walking paths 

Affordable and Sustainable 

Housing 

• Availability and access to affordable green 

housing 

• Reduction in displacement 

• Improved indoor air quality 

• Improved housing quality and safety and 

enhanced public health 

• Reduction in abandoned or vacant homes 

• Reduced housing cost burden 

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Training and Workforce 

Development 

• Increased participation in clean energy good 

job training and subsequent good job 

placement/hiring, including providing the 

free and fair chance to join a union and 

collectively bargain. 

• Increased participation in good job training 

programs that target participation from 

disadvantaged communities, including 

formerly incarcerated individuals and youth 

transitioning out of foster care 

• Increased climate-smart training, including 

training to identify waste, efficiencies, and 

GHG inventories. 

• Increased percentage of good job training 

programs within energy communities, such 

as those that include paid employment and 

that measure and report participant 

outcomes. 

Remediation and Reduction of 

Legacy Pollution 

• Reduction of criteria air pollutant and toxic 

air pollutant exposure 

• Reduction in farmworker exposure to 

pesticides 

• Brownfield redevelopment 

• Remediation of Superfund sites 

• Community engagement training; capacity 

support for reduction strategies 

• Reclamation of abandoned mine lands and 

capping of orphan oil and gas wells 

Development of Critical Clean 

Water Infrastructure 

• Replacement of lead service lines 

• Increased access to safe drinking water and 

sanitary sewer services 

• Reduction in waterborne and respiratory 

illnesses 

• Reduction in the quantity of raw sewage 

discharged 

• Increase in the number of community water 

systems that meet applicable health-based 

standards 

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Building on program metrics and engagement with state and community partners, the 

WHEJAC, and the IAC, and other groups including the Interagency Working Group on 

Coal and Power Plant Communities and Economic Revitalization, OMB will work with 

CEQ and USDS to develop and publish a common set of metrics to measure select 

benefits across agencies, e.g., improvements in air quality. 

IV. Calculating Benefits 

Executive Order 14008 states that “40 percent of the overall benefits” of federal 

investments from covered programs should flow to disadvantaged communities. To 

respond to that directive, each agency should establish a methodology for calculating the 

benefits that a) flow from each applicable covered program and b) accrue in 

disadvantaged communities from each covered program. 

A. Benefits Methodology. The determination of what constitutes a “benefit” will 

vary by covered program. Accordingly, each agency is directed to: 

i. Within 60 days of the issuance of this guidance, to deliver to OMB: 

a. An assessment of agency programs (referencing the list of programs in 

Appendix B) that are covered programs in accordance with section 

II.A and II.B of this guidance; and 

b. A description of the types of benefits that result from the identified 

covered programs. 

ii. Within 150 days of the issuance of this guidance deliver to OMB a 

methodology for calculating the covered program benefits accruing to 

disadvantaged communities. This methodology should also include a 

description of the metrics that the agency is developing to measure 

covered program benefits.9 

B. Stakeholder Consultation. When determining the benefits of a covered 

program, as specified in section IV(A), agencies should consult with 

stakeholders, including state, local, and Tribal governments, as well as Native 

communities, to ensure public participation and that community stakeholders 

are meaningfully involved in what constitutes the “benefits” of a program. In 

addition, if the calculation of a benefit to a disadvantaged community includes 

investments outside of that community, the disadvantaged community should 

be consulted. In engaging with stakeholders, agencies should consider their 

obligation under Title VI of the Civil Rights Act of 1964 to ensure meaningful 

access for individuals with limited English proficiency (LEP), as well as their 

9 It may not be possible to accurately measure the allocation of covered program benefits based solely on 

the geography where the program expenditures occur. Accordingly, agencies should actively consider the 

purpose of the covered program when determining whether covered program benefits have accrued to 

disadvantaged communities. For example, an energy efficiency program that provides weatherization 

assistance to individual households may need to analyze the allocation of program benefits by tracking the 

characteristics of recipient households, rather than relying on geographic indicators. Programs that 

distribute grants to states and territories that then distribute funds to households may need to work with 

such states and territories to obtain additional information about the ultimate distribution of federal funding 

and benefits. 

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obligation pursuant to Section 504 of the Rehabilitation Act to take 

appropriate steps to ensure effective communication for individuals with 

disabilities. Where applicable, agencies should also comply with, the 

Paperwork Reduction Act, Federal Advisory Committee Act, or other relevant 

law, regulation, or guidance. Agencies should also review and incorporate, 

where appropriate, recommendations from the WHEJAC and the IAC when 

developing metrics. (Examples of Stakeholder Engagement Plans will be 

available to agencies on the MAX Justice40 page.) 

V. Reporting 

Agency heads are responsible for calculating the accrual of covered program benefits to 

disadvantaged communities. Agencies should consult with OMB when determining 

whether their program is a covered program. Consistent with section IV, agencies shall 

report the following information to OMB for each covered program within 60 days and 

150 days of the issuance of this guidance, as specified, and annually thereafter. 

A. Within 60 days of the issuance of this guidance agencies shall report: 

i. Agency 

ii. Program 

iii. Program ID (for financial assistance programs, this should be the 

assistance listing as defined in 2 C.F.R. § 200.20310) 

iv. Amount Appropriated 

v. Amount Obligated11 

vi. Developed Stakeholder Engagement Plan (y/n) 

B. Within 150 days of the issuance of this guidance agencies shall report: 

vii. Benefit Methodology Submitted (y/n) 

viii. Benefit Methodology Submitted (date) 

ix. Target Benefits of Program (qualitative list of types of targeted benefits) 

x. Percent of Benefits Directed to Disadvantaged Communities (e.g., percent 

new waste water systems installed in disadvantaged communities of total 

waste systems installed) 

xi. Percent of Benefits Not Directed to Disadvantaged Communities (e.g., 

percent new waste water systems not installed in disadvantaged 

communities) 

xii. Percent of Benefits with Unknown Direction (e.g., a percentage of waste 

water systems with unknown installation location), including a brief 

explanation of why the percent of benefits to disadvantaged communities 

cannot be determined 

xiii. Line Item Data for the Geographic Distribution of Benefits and Program 

Funding (e.g., a table of data with rows for the census block groups served 

10 Assistance listings refers to the publicly available listing of Federal assistance programs managed and 

administered by the General Services Administration. Assistance listings are detailed public descriptions of 

federal programs that provide grants, loans, scholarships, insurance, and other types of assistance awards.

11 As obligation amounts change over time, agencies should update this reported amount semi-annually. 

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by each waste water system installation and the locations that received 

funding for that installation)12 

a. For programs that do not target benefits geographically, the data 

provided should reflect the common characteristics of communities 

receiving benefits at the narrowest level that does not raise privacy 

concerns 

xiv. Amount of Program Funding Received in Disadvantaged Communities 

(e.g. the dollars of funding received by a grant or loan recipient in a 

disadvantaged community) 

Forthcoming guidance will provide additional information on the tool agencies should 

use to report the above information discussed in sections IV and V, and specific 

instructions for submitting the data into that tool. 

The Administration’s overall progress towards the Justice40 Initiative’s goal will be 

tracked by the categories of covered project (climate change, clean energy and energy 

efficiency, clean transportation, affordable and sustainable housing, training and 

workforce development, the remediation and reduction of legacy pollution, and the 

development of critical clean water infrastructure). 

VI. Pilot to Maximize Benefits to Disadvantaged Communities 

In addition to the previously mentioned covered programs, Appendix A lists 21 programs 

that will undertake an initial implementation of the Justice40 Interim Implementation 

Guidance to maximize the benefits that are directed to disadvantaged communities. These 

programs were selected by reviewing WHEJAC recommendations, consulting with the 

IAC, and reviewing agency responses to information requests about current federal 

investments in disadvantaged communities. 

The agencies with covered programs listed in Appendix A should identify applicable 

program funding mechanisms, policies, and procedures based on this guidance and 

consider program-specific guidance that provides recommendations for maximizing the 

benefits of the program that accrue in disadvantaged communities, as appropriate and 

consistent with applicable law. Specifically, the agencies with covered programs listed in 

Appendix A are directed to: 

A. Develop a Stakeholder Engagement Plan. Within 30 days of issuance of this 

guidance, develop a plan to engage stakeholders relevant to the covered agency 

program. Plans should include a timeline for engaging relevant stakeholders, to 

include grantees and recipients, and a list of key issues relating to implementation 

of the Justice40 Initiative with respect to the covered program for stakeholder 

input. Plans should account for other stakeholder engagement efforts, including, 

but not limited to public involvement activities conducted pursuant to the 

National Environmental Policy Act and nation-to-nation consultations with 

12 Although this request includes the submission of detailed data, the calculation of several items listed 

already requires such data to exist, and this requirement asks the agency to also report the raw data used to 

make those calculations. Since disadvantaged communities in the CEJST will be defined at a very narrow 

geographic level, agencies need to prepare benefits and place of performance data at a narrow geographic 

level to perform these calculations. Agencies should report at the narrowest geographic unit possible. 

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Tribes. In addition, if the calculation of a benefit to a disadvantaged community 

includes investments outside of that community, the disadvantaged community 

should be consulted. 

B. Justice40 Implementation Plan to Maximize Benefits. Within 60 days of 

issuance of this guidance, develop a draft implementation plan describing a) the 

agency’s plan to maximize benefits of the covered program in disadvantaged 

communities; b) any significant barriers or constraints to maximizing benefits to 

disadvantaged communities; c) opportunities and/or resource needs that may 

address the identified barriers or constraints; and, d) timelines for achieving the 

milestones identified in the agency’s plan. 

C. Consider the Following Program Modifications to Maximize Benefits. When 

developing a Justice40 implementation plan to maximize benefits, that agency 

should consider the following guidelines, to the extent consistent with statutory 

and constitutional requirements, for modifying programs: 

i. Foster well-paying job creation and job training, including a free and fair 

chance to join a union and collectively bargain. 

ii. Coordinate investments and leverage funds where possible to provide 

multiple benefits and to maximize benefits. 

iii. Avoid potential burdens to disadvantaged communities. 

iv. Ensure transparency and accountability through full compliance with 

OMB requirements at 2 C.F.R. part 200 for financial assistance programs 

and provide public access to program information including through high 

quality data in compliance with Federal Funding Accountability and 

Transparency Act reporting (2 C.F.R. § 200.212). 

v. Conduct outreach, and support technical assistance and capacity building 

to help potential applicants’ access, manage, and report on results of 

funding. 

vi. Hold competitive solicitations that prioritize or award extra points to 

projects that meet the criteria for benefiting disadvantaged communities 

and includes community engagement, planning, and feedback. 

vii. When developing eligibility requirements in program guidelines and 

solicitation materials, establish targets or minimum thresholds for a 

specific benefit. For example, an agency could identify a certain 

percentage of total jobs for a project to be held by residents of a 

disadvantaged community in order to receive a higher priority for funding. 

viii. Require applicants to apply cost savings from project implementation to 

benefit disadvantaged communities (e.g., energy cost savings reinvested in 

the local community to promote workforce development and community 

health). 

ix. To the extent modifications are restricted by statute or regulation, describe 

what, if any, legislative changes would be required to advance the goals of 

Justice40 Initiative with respect to such covered program. 

D. Calculating Benefits and Reporting. Within 60 days of issuance of this 

guidance, in line with section IV. A and V (but on the timeline specified in 

section VI.), provide a methodology for calculating, the covered program benefits 

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accruing generally and to disadvantaged communities. This methodology should 

also include a description of any additional metrics that the agency is developing 

to measure covered program benefits. 

E. Other Reporting. The pilot programs listed in Appendix A should also plan to 

report the information outlined in section V. 

Pilot programs should submit the requested information to EJ@omb.eop.gov by the 

stated deadlines. Agencies may also use EJ@omb.eop.gov to pose any questions 

regarding this guidance. 

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Appendix A. Justice40 Covered Program Pilot to Maximize Benefits to 

Disadvantaged Communities 

Agency Program 

ARC Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) 

DHS Flood Mitigation Assistance Program 

DHS Building Resilient Infrastructure and Communities Program (BRIC) 

DOE Weatherization Assistance Program 

DOE Solar Energy Technologies Office (National Community Solar Partnership) 

DOE Vehicles Technologies Office (Clean Cities) 

DOE Environmental Management, Los Alamos 

DOE Advance Manufacturing Office (Industrial Assessment Centers) 

DOI Abandoned Mine Land Economic Revitalization (AMLER) Program 

DOT Bus and Bus Facilities Infrastructure Investment Program 

DOT Low or No Emissions Vehicle Program 

EPA Drinking Water State Revolving Fund 

EPA Clean Water State Revolving Fund 

EPA Brownfields Program 

EPA Superfund Remedial Program 

EPA Diesel Emissions Reductions Act Program (DERA) 

EPA Reducing Lead in Drinking Water 

HHS National Institute of Environmental Health Science (NIEHS) Environmental Career 

Worker Training Program 

HHS Low Income Home Energy Assistance Program (LIHEAP) 

HUD Lead Hazard Reduction and Healthy Homes Grants 

USDA Rural Energy for America Program 

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Appendix B. Internal Guidance for Agencies 

A. Covered Program List 

OMB has begun compiling a list of potential “covered programs” at 

https://go.max.gov/justice40. The programs listed have potential existing authorities that 

could be used to benefit disadvantaged communities. Agencies with covered programs 

are directed to begin examining (and consider modifications to) policies, practices, and 

procedures to implement the Administration’s Justice40 goals. If an agency would like to 

request to add or remove a program from this list, please contact EJ@omb.eop.gov. 

B. Agencies with Potential Covered Programs 

Appalachian Regional Commission 

Corporation for National and Community Service 

Corps of Engineers--Civil Works 

Delta Regional Authority 

Denali Commission 

Department of Agriculture 

Department of Commerce 

Department of Energy 

Department of Health and Human Services 

Department of Homeland Security 

Department of Housing and Urban Development 

Department of Justice 

Department of Labor 

Department of State 

Department of the Interior 

Department of Transportation 

Department of Veterans Affairs 

Environmental Protection Agency 

National Aeronautics and Space Administration 

National Science Foundation 

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