First-in-the-Nation Reparations Program Runs Into Financial Problems, Halts Payouts

Facing an unexpected cash crunch, the first reparations program in the country is holding off on making additional payouts as it struggles to come up with funds.

The six-year-old program at Evanston, Illinois, has run into trouble because of problems with a key funding source — a 3 percent sales tax on recreational marijuana sales in the city of 75,000, which is home to Northwestern University and located 12 miles north of Chicago. The program also accepts donations and takes in revenue from a real estate transfer tax on high-end properties.