In a move that’s got everyone from fiscal conservatives to casual observers raising an eyebrow, San Francisco Mayor Daniel Lurie slipped a reparations bill into law just before Christmas, igniting a firestorm of debate over potential multi-million-dollar payouts, as the Daily Mail reports.

At its core, this legislation sets up a fund for eligible Black residents, with a staggering $5 million per person proposal on the table from a local advisory group, though no actual funding exists yet.

The push for this policy began with the African American Reparations Advisory Committee (AARAC), which in 2023 released a report urging action to rectify historical wrongs inflicted on Black communities through decades of systemic disinvestment.

Quiet Passage of a Controversial Bill

Roughly a week before the mayor’s signature, the San Francisco Board of Supervisors gave unanimous approval to the ordinance, crafted by Supervisor Shamann Walton.

Then, with holiday distractions at their peak, Mayor Lurie signed the bill into law a mere two days before Christmas, a timing that critics argue was deliberately low-profile to sidestep immediate backlash.

For now, the legislation is just a shell; it establishes the reparations fund but allocates no money, leaving the door open for future city contributions or private donations to fill the coffers.

The Eye-Popping $5 Million Suggestion

AARAC’s 2023 report didn’t shy away from bold ideas, proposing a $5 million lump sum for qualifying African American adults alongside over 100 other recommendations like debt relief, a $97,000 annual income guarantee, and city-backed housing.

Given San Francisco’s estimated 50,000 Black residents, the potential cost is astronomical, with the Hoover Institution calculating in 2023 that non-Black households could face a burden of about $600,000 each if such a plan ever materializes.

Who exactly qualifies for these payments remains a big question mark, with eligibility criteria still undefined, adding another layer of uncertainty to an already contentious proposal.

Mayor Lurie’s Fiscal Reality Check

Mayor Lurie was blunt about the city’s financial constraints, highlighting a projected $1 billion budget deficit for next year as a major roadblock to funding this initiative anytime soon.

“Given these historic fiscal challenges, the city does not have resources to allocate to this fund,” Lurie declared, though he noted the city would gladly accept private donations if they’re legally designated for the reparations effort.

In other words, don’t expect taxpayers to foot this bill just yet, but if a deep-pocketed benefactor steps forward, the city’s ready to facilitate the process.

Criticism Mounts Over Policy and Timing

Opposition to the bill has been fierce, with conservative activist Richie Greenberg slamming the reparations concept as “ludicrously unlawful” and fundamentally at odds with constitutional principles.

Journalist Erica Sandberg called the move hypocritical, especially after last summer’s nationwide No Kings protests against authoritarian overreach, while the San Francisco NAACP chapter criticized the $5 million figure as arbitrary and accused the 2023 plan of fostering false hopes among Black residents.

Even former Mayor London Breed had previously argued that reparations are a federal, not local, responsibility, a perspective that highlights just how polarizing this attempt to address past urban renewal displacements in Black neighborhoods from the 1950s to 1970s remains.