By De'Stani Clark for the Arkansas Delta Informer.
Broadcast version by Freda Ross for Arkansas News Service reporting for The Arkansas Delta Informer-Winthrop Rockefeller Foundation-Public News Service Collaboration.

Whether to avoid germs or forgo uncomfortable conversations about finances, underbanked Arkansas families are finding new ways to access their money post-COVID-19.

For Heavenly Zachery of Prescott, Ark., "it was a little bit of both," she expressed. "There was maybe one conversation in high school about banks, and I hadn't heard of many positive experiences," said Zachery. However, the prospect of a new job and her mother's determination to follow all COVID-19 precautions encouraged Heavenly to broaden her banking knowledge.

With the guidance of her grandfather, Ronnie Nolan, Heavenly ventured into one of the few local banks in the small southwest Arkansas town to create her first checking account.

"I'll say taking him to the bank with me made the experience ten times better than it probably would have been if I had gone by myself," said Zachery. "Especially as I am a young Black female going into a bank."

Heavenly isn't the first young adult or Black female to be wary of traditional banks that offer checking and savings accounts and access to financial services. According to the "FDIC's 2021 Survey of the Unbanked and Underbanked," after minimum balance requirements, "Don't trust banks" was the second-most cited reason for not having an account in 2021, and "Avoiding a bank gives more privacy" was the third-most cited reason.

These sentiments are prominent in Black and brown communities. The FDIC emphasizes inadequate access to financial services pushes the unbanked to use high-cost alternatives for their transactional needs.

These alternatives can hinder access to credit when households need it, adversely affecting the financial health, educational opportunities, and welfare of unbanked households and increasing economic inequality.

Thanks to the introduction of new digital products and government benefits, Asset Limited Income Constrained Employed (ALICE), families and individuals in Arkansas and across the U.S. have been incentivized to participate in the mainstream financial sector. This has led to a significant decrease in the number of unbanked and underbanked households from 2019 to 2023, a trend set to continue.

Digital Banking in the New Era

Professionals in the industry have acknowledged this as a remarkable feat throughout the nation and Arkansas. However, as we look forward, under the 2024 FDIC Economic Inclusion Strategic Plan, a comprehensive roadmap has been laid out to advance financial equity and inclusion further. The report concluded that the country has crossed a checkpoint toward financial equity but has yet to finish.

For example, after moving to Northwest Arkansas, where diversity is slim, and it was "easier to just Google a question" than ask a local teller, Heavenly is solely now a digital banking and "neobank" consumer.

"I am 100% an online banker. It's mainly for accessibility-better 24-hour customer service, fewer unexpected fees and restrictions, automated savings options, and no need to go into a bank," she said. Similar trends have led some to question if consumers are sacrificing healthy relationships with bank service providers for much-needed convenience.

Banked households use nonbank online payment services such as PayPal, Venmo, Chime, and Cash App to complement banking products. These digital platforms allow you to send and receive money, pay bills, and manage your finances online. On the other hand, ALICE underbanked and unbanked households may use them as substitutes for traditional banking or other financial services.

The FDIC analysis also found that special efforts are needed to ensure expanded access to financial services for ALICE consumers, consumers of color, and other underserved groups, such as households led by working-age individuals with disabilities, single-parent families, and consumers with fewer years of formal education.

As the industry navigates this new era, the strategic plan highlights key opportunity areas, such as establishing an on-ramp to the U.S. financial system and aiding access to consumer credit to manage ongoing and emergency expenses better. It also encourages fostering household wealth through investments, bank lending, and other services that support strong and healthy communities, including ALICE households, low- and moderate-income (LMI) neighborhoods, and other underserved groups.

"Promoting economic inclusion among these populations requires understanding their financial needs and challenges," states the 2021 FDIC Survey of Unbanked and Underbanked Households.

In the face of these challenges Arkansans can be inspired by iInitiatives like BankOn Arkansas+ and the Arkansas Women's Business Fund. These organizations are not just about creating accounts; they are about empowering individuals like Heavenly Zachery, cultivating inspiring hope for a brighter financial future.

Alliances for ALICE

According to recent data from United for Alice, a national nonprofit that advocates for ALICE households, financial hardship for such individuals and families in the Natural State has been steadily growing since the end of the Great Recession. Since the pandemic, 47% of the ALICE households across the state that live below the federal poverty line are struggling financially with little access to sound banking tools.

In response to the financial threats unbanked and underbanked consumers face, Arkansas bankers and a coalition of nonprofit organizations founded BankOn Arkansas+. The Arkansas Asset Funders Network (AR AFN) first seeded BankOn Arkansas+ in 2018. The initiative aligns with AR AFN's mission to advance equitable wealth-building and economic mobility. These relationships give access to additional financial literacy, investment opportunities, credit management, and overall economic stability.

'You can't budget yourself out of poverty,' asserted Shamim Okolloh, a resident of Little Rock. Her family's journey from being ALICE to climbing to executive ranks at Encore Bank and a published author of Ella the Banker is a testament to the transformative power of financial inclusion initiatives. Her story is a beacon of hope for many others in similar situations.

"I was ALICE," stated Okolloh, now vice president of community outreach at Encore. "It wasn't that I was bad with money; my income was just limited." About five years ago, Okolloh and the statewide food pantry met with the Little Rock branch of the Federal Reserve Bank, increasing her interest in the local financial sector.

From that experience, Shamim became a channel partner for what is now BankOn Arkansas+. "I remember walking into the room, and multiple banks were at the table. It was my first time. We often think banks are super competitive, but it was great to see that collaboration," said Okolloh.

Okolloh was empowered to enact financial literacy for AFB locations across the state after that meeting. "There is not a lot of trust in certain communities with banking, for good reason," she said.

As part of the plus on BankOn+, the AFB was one of the trusted spaces. Many people coming to food pantries across the state typically have some financial need tied to experiencing food insecurity.

"About 40% of the people-visiting AFB-were working, and something happened. Their tire went out, a partner or someone lost a job, or there was this one big financial misstep that led them to seek alternative ways to feed their families," explained Okolloh.

Financial stability is not just about access to resources; it's about education. Shamim's journey is a perfect example. She credits additional financial education with helping her purchase her first home in 2017. This highlights the life-changing power of financial literacy and instills optimism about its potential for improving economic health.

The Arkansas banker attended a homebuyer's class and was informed about down payment assistance. She needed a total of $1000 out-of-pocket cost for inspection and appraisal. It wasn't until her son was in a grant-funded preschool that she could save an additional $700. "If somebody hadn't told me about this homebuyer's class, I would probably still be a renter."

Extending Resources and Building Relationships

Various institutions offer resources that promote financial wellness; however, additional hurdles remain as institutions debate how to extend these resources within diverse communities. As the industry promotes necessary access, new bank consumers primarily use digital products, and a quarter use online neobanks, causing a gap between the business and consumer.

"If the children use Cash App, they're not calling me-the banker. The relationship is not there whenever they need to make a purchase, such as a home or business. So, we ask ourselves how we can change the narrative to a warm and welcoming bank and industry. And then how do we hold the banking industry accountable, to be warm and open- providing belonging, equity, and opportunities," shares Shamim.

BankOn Arkansas+ Director Kara Wilkins strives to address those same questions. "Digital inclusion means using technology to support all aspects of financial well-being, including developing strategies that build inclusive pathways into banking and improve access to capital and credit for entrepreneurs," she said.

Over the past five years, the BankOn Arkansas+ coalition has brought together financial institutions, nonprofit organizations, and other leaders from across the state. They aim to help provide access to bank accounts and advocate and support recommendations for long-term systemic financial stability policies, creating these 'safe spaces.'

Recently, Forbes listed Arkansas as the fourth-best state for banking access. That is in no small part thanks to the tireless efforts of the BankOn Arkansas+ coalition, including their financial institution partners. Community leaders promote certified BankOn accounts within the communities they serve, and in turn, financial institutions can recommend wrap-around services that community partners provide to the account holders. Because of their hard work, Arkansas can take pride in reducing the number of unbanked households from 7.9% to 3.4%.

"Equity and economic justice are core pillars of Arkansas AFN and BankOn Arkansas+," said Kara. She explains that their access to capital work recognizes that small business owners- particularly women of color- face significant roadblocks in accessing capital from banks and other traditional sources.

These challenges led to the launch of the Arkansas Women's Business Fund, which re-envisions a robust small business capital infrastructure, providing more patient and flexible products directed to diverse entrepreneurs. BankOn Arkansas+ financial institutions played a critical role in helping to design the new product, hoping it would lead to better outcomes for those without a banking relationship or those hesitant to approach lenders.

Inspiring the Next Generation

The efforts of Wilkins, Okolloh, and their counterparts are starting to impact aspiring young consumers like Heavenly. Okolloh recently published her first book, Ella the Banker, co-written with her son, Liam. The book spotlights the Encore banker' daughter, Ella, a first grader who also wants to be just like her mom. This encouraging and fun book can now be purchased locally at Pyramid Arts, Books, and Custom Framing and is available nationally online at Amazon, Walmart.com, and BarnesandNoble.com.

Economics Arkansas recently purchased over 500 copies to distribute to every elementary school in the state, thanks to partners like the U.S. Bank, Encore Bank, First Community Bank, and the Arkansas Women's Business Fund.

"We can hopefully change the narrative and relationships with (banks) and explain better what banks do beyond just giving money, counting money, and saving money..." said Shamim. "ALICE individuals can bloom and belong." By working together, we can build a more inclusive financial system that empowers all Arkansans to achieve economic stability and prosperity.


De'Stani Clark wrote this article for the Arkansas Delta Informer.


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Apprenticeship programs are getting more attention these days to help fill skilled labor shortages but accessibility is seen is a barrier and Minnesota could boost support for a program that opens its arms to disadvantaged populations.

A Minnesota House committee heard testimony this week on a bill that would provide $800,000 over the next two budget years to the Building Strong Communities program, a regional nonprofit spearheaded by construction union partners.

Natalie Pilrain, a recent graduate of the program, said as a single mom trying to finish high school, it gave her the chance at a promising career by overcoming up-front hurdles.

"At the time, I didn't have extra money lying around for work boots or hotel expenses for going up to the training center," Pilrain pointed out. "Building Strong Communities covered those costs for me."

She is now earning strong wages as an apprentice with the International Union of Operating Engineers Local 49. Bill sponsors said additional state funds could help the program further fulfill its mission to recruit women, minorities and veterans. The measure has bipartisan sponsors but like other proposals this spring, it faces an uncertain future with Minnesota's budget surplus getting smaller.

Dorlisa Squires, also a program graduate, said officials were very responsive when she asked about it. After working in the medical device field for many years, Squires told the committee she wound up homeless without a promising career outlook. She stressed her new journey through the trades has given her a fresh start.

"Now I have a career and now I have placement," Squires explained. "I have an apartment, a car."

Officials said the free training has led to 107 job placements over a two-year period.

A new study commissioned by the federal Department of Labor said registered apprenticeship programs dramatically increase the ability of participants to afford basic needs, especially initiatives led by unions. The movement comes as the industry still hears complaints about long-standing issues such as nepotism.


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The seven national parks in Arkansas have not been spared from job cuts by the federal government.

Nationwide, 1,700 park employees have been let go by the Trump administration.

Eboni Preston, southeast regional director and National Park Service diversity lead for the National Parks Conservation Association, said the cuts will impact park services and the Arkansas economy.

"By fewer people being able to come to the parks, enjoy the parks, hotels are suffering, restaurants are suffering," Preston pointed out. "Walking up and down the community, it's really taking a toll, and so places like Hot Springs National Park and Buffalo National River, unfortunately they won't get the visitation that they did before."

She noted park visitors will also experience reduced hours, longer lines and closed campgrounds and facilities. Anyone going to a national park is encouraged to check the park's website for schedule changes.

Last year a record 331 million people visited national parks. Preston stressed with 9% of the workforce gone, park visitors will have a different experience this year.

"The National Park Service is always going to prioritize safety," Preston explained. "The rangers are going to do everything that they can to manage that, but what that means is there may be fewer opportunities to experience some of those unique places, especially if they're difficult to get to. So, just be mindful of that and then offering grace to the people that are there."

Preston added although morale is down, park employees are dedicated to help you have a good experience.

"It's really, really hard, but they're a committed group of people," Preston observed. "They're still smiling, they're still prioritizing the visitors. They're still making sure that everything is safe, they still are committed to the work that they signed up to do. You talk to most rangers, if you talk to most staff, they really feel called to this work."


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By Anna Gustafson for the Pennsylvania Independent.
Broadcast version by Danielle Smith for Keystone State News Connection reporting for the Pennsylvania Independent-Public News Service Collaboration

John Kelly has seen it before: the massive influx of people turning to his food pantry in central Scranton for support. The hunger. The families struggling to put food on the table. The parents who have lost their jobs and don’t know how they’re going to make ends meet. 

That was just last year, when about 30,000 people received food from Bread Basket of NEPA’s seven food pantries in northeastern Pennsylvania, up from approximately 20,000 in 2023. Kelly said that the increase of 10,000 people came after the expiration of a federal program launched after the onset of COVID to boost food benefits, resulting in a decrease in the amount of financial assistance people received through the Supplemental Nutrition Assistance Program, also known as SNAP. 

Now, as the Trump administration and Republican lawmakers look to cut SNAP, which provides financial assistance for buying food to about two million Pennsylvanians and approximately 42 million people nationwide, Kelly expects to see the number of people needing emergency food aid once again skyrocket. This time, however, his pantry is already helping as many people as it can.

If the people needing help from Bread Basket of NEPA jumps by 50% again, which Kelly says is entirely possible with the impending SNAP cuts, the pantries simply wouldn’t have the resources they’d need to continue giving everyone the amount of food they do now.

“What has been talked about in our pantry, and on the board, is decreasing the amount of help we give to people, which none of us want to do,” Kelly said. “Right now, our pantries, people can come twice a month. Our easiest way to solve our overcapacity is to cut that to once a month.” 

“We don’t want to do it, but there are stark realities facing us budgetwise,” he continued.

President Donald Trump has long criticized SNAP, which benefits older Americans living on fixed incomes, millions of children, and low-income individuals and families. During his first term, the administration tried to revoke SNAP eligibility for nearly 700,000 people. A federal court prevented that from happening.

Fast forward to now, and the Trump administration and congressional Republicans are looking to pay for Trump’s push for a mass deportation of immigrants and tax cuts for the wealthy by exploring cuts to SNAP benefits, as well as to other safety net programs. These include Medicaid, which provides health coverage for about three million Pennsylvanians, including children, pregnant people and individuals with disabilities; and Temporary Aid for Needy Families, or TANF, which provides financial assistance to low-income families for food, housing, and child care.

Specific details about the cuts have not been cemented, but House Republicans on Feb. 12 released a budget that calls for at least $1.5 trillion in federal spending reductions, which, if implemented, would result in significant cuts to Medicaid and SNAP.

“The proposals they put forward run from horrible to just unconscionable,” said Marc Stier, the executive director of the Pennsylvania Policy Center in Harrisburg, which studies the impact of government policies.

Cuts to public assistance — programs that two-thirds of Americans will use for at least one year during their lifetimes — will result in significant pain, and even death, because people across the state and country will not be able to meet basic needs for food, health care and shelter, Stier said.

“Some people are going to die,” Stier said. “Some people are going to become bankrupt because they have unreimbursed medical expenses. A lot of people are going to suffer.”

‘It’s helping seniors. It’s helping people with disabilities.’

When explaining to people the importance of Medicaid and the danger cuts to the program would pose for millions of people across the country, Kristin Volchansky often tells the story of her own life.

Volchansky, now the advocacy director of Action Together NEPA in northeastern Pennsylvania, was a 21-year-old college student when she was diagnosed with mononucleosis, which left her unable to work while battling years of demoralizing, exhausting and very expensive health problems.

“My particular bout of mono seemed to trigger an immune response after the initial infection, and I became really, really ill and unable to really eat anything that was substantial, to the point that a couple years into the illness, I was pretty much subsisting on Pedialyte, a little bit of baby food and dry toast while they were trying to figure out what is this, what’s going on,” said Volchansky, who grew up in central Pennsylvania and now lives in Hellertown in the Lehigh Valley.

After eight years of doctors attempting to figure out what was wrong with her, Volchansky finally received a diagnosis: She had a genetic immune deficiency that leaves her with too few antibodies to fight infections. To treat it, she has to head to the hospital for monthly infusions that cost $30,000 each.

To pay for that, she needed health insurance. Because Volchansky wasn’t able to work for much of her adult life, she couldn’t receive insurance through a job. She was able to get a health plan under the Affordable Care Act, but Volchansky’s parents were paying for that, and it ultimately was too expensive for them as their circumstances changed and they reached retirement. 

Then came the insurance that Volchansky credits with changing her life: Medicaid. 

Following Democratic Gov. Tom Wolf’s decision in 2015 to expand Medicaid to cover more lower-income Pennsylvanians, which was financially feasible because of the Affordable Care Act, Volchansky was able to enroll in Medicaid beginning in 2016. That allowed her to receive her monthly infusions without having to pay anything out of pocket. 

“I was, through the course of being on Medicaid, able to gain enough strength and regain my health to be able to do things like volunteer,” Volchansky said. 

That volunteer work led to Volchansky being able to hold her first full-time job. Since the fall of 2021, Volchansky, who’s now 41 years old, has worked for Action Together NEPA, where she has helped to organize community meetings about possible federal budget cuts.

“Medicaid allowed me the ability to become not just healthier, but healthier and financially independent and in a job that I love, which is something that we should be lifting up and celebrating, because there’s a lot of people like me who had a time in their life when they needed help, and programs like Medicaid were there for them, and it allowed them to rebound and get back on their feet,” said Volchansky, who no longer has Medicaid and instead has a plan from Pennsylvania’s Affordable Care Act marketplace.

Potential cuts to Medicaid would be disastrous for people who, as she did, rely on the program to stay alive, Volchansky said.

“It is a program that touches a lot of people,” she said. “It is not just what people commonly think of as a program just for people who are in financial need. That is true, and that is vitally important, and, at one time, I was one of those people. But it’s also a program that is helping kids. It’s helping seniors. It’s helping people with disabilities.”

According to an August 2024 analysis by KFF, a nonprofit focused on health policy, Medicaid covers three in eight children in Pennsylvania, five in eight nursing home residents, two in five people with disabilities, and one in six adults aged 19-64.

Hospital closures and local businesses

If the cuts to Medicaid and SNAP go through, Pennsylvania hospitals could close and local businesses, such as farms and grocery stores, could be financially harmed, experts warned. 

Should people lose their Medicaid benefits, they may be unable to afford preventive health care and instead be forced to go to the hospital after a health issue has become an emergency, Stier said. An influx of uninsured people could lead to hospital closures in a state already struggling with the shuttering of medical institutions.

“They still have to provide care for people who don’t have insurance in many cases, but, without being reimbursed, they would close,” Stier said. “We will see many more hospital closures if Medicaid is cut. So Medicaid is benefiting people who will never get Medicaid.”

Amanda Gordineer, the director of food equity at Food Dignity, said the commonwealth’s farms and grocery stores could also lose money if SNAP is cut because individuals will no longer be able to purchase food and instead will be accessing emergency aid through pantries and other organizations. Food Dignity is a Luzerne County nonprofit that distributes food from local farms to places that serve marginalized populations, such as health clinics, independent living centers for people with disabilities, and recovery support centers. 

“Budget cuts to SNAP are a very serious threat, not only to people in Pennsylvania who need food — and this really could be anyone at any time — but also to our small food retailers, because SNAP really helps to support our local economy,” Gordineer said. “SNAP money is spent very quickly after it is allocated, and that money goes to food businesses like farmers and local grocery stores.”

If people aren’t able to afford food because their SNAP benefits are cut, they may have to choose between paying for groceries or meeting other basic needs such as rent, Gordineer said. 

“When we are struggling with resources, we have to make decisions between, are we going to fill our prescription and take our prescription every day, or am I going to afford nutritious food this week?” she said. “Or am I going to fill my oil tank and heat my house this winter? Those basic-need choices are not something that we should ever expect anyone to have to struggle through in one of the richest countries in the world.”

For now, there remain food pantries that people who’ve lost SNAP benefits can turn to — but, as Kelly said, it’s not guaranteed that pantries will be able to meet a huge increase in demand in the wake of budget cuts. 

If the pantries are hurt, that would be devastating, said Dan Tomlinson, a retired 71-year-old Scranton resident who receives food at the pantry led by Kelly. Tomlinson started going to the Scranton pantry about six years ago in order to feed not only himself but his two young grandsons, who frequently stay with him.

“It helps, with the pasta and the various things that you get,” said Tomlinson, who worked as a line mechanic in a book distribution center before retiring. “They’re add-ons to a meal. I don’t have to buy a whole lot of canned goods because I get a lot there. Cereals and stuff like that, I get there. A lot of the things that you could stretch a meal out, I get there, and it just helps. And without them, I know there’s going to be a lot of hungry people around.” 

Without the pantry, Tomlinson said, he wouldn’t be able to afford items like cereal, fruits and vegetables, and milk.

“I can’t afford to go to the grocery store and get these things, like the cereal,” Tomlinson said. “They’re not giving out Lucky Charms; it’s your standard fiber foods, like Cheerios, Raisin Bran. They’re not brand names, but I couldn’t afford them even if I went to the retail stores, like the real cheap places, like Aldi’s and stuff like that. I can’t afford to go there and get this stuff. So we tune out a lot of things, but the food pantry gives us an opportunity not to give up too much things.”


Anna Gustafson wrote this article for the Pennsylvania Independent.


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