President Biden recently unveiled the American Families Plan, a significant investment aimed at bolstering the future of American children, families, and the economy. This announcement follows the American Rescue Plan, which has already provided substantial relief to American households, including $1,400 payments to approximately 161 million people, reopening schools, and making COVID-19 vaccines available to all Americans aged 16 and older. The Rescue Plan is expected to lift over five million children out of poverty this year, cutting child poverty by more than half.
Despite these efforts, President Biden acknowledges that more needs to be done. He believes that merely restoring the pre-pandemic status quo is insufficient. Instead, he aims to build a stronger, more inclusive economy that benefits everyone. Biden understands that a robust middle class is essential for America’s prosperity and that policies must be inclusive of all demographics, including gender, race, and geographic location.
The American Jobs Plan and the American Families Plan represent once-in-a-generation investments in the nation’s future. The American Jobs Plan focuses on creating millions of jobs, rebuilding infrastructure, and fostering innovation and manufacturing within the country. The American Families Plan, on the other hand, aims to support families by covering basic expenses, lowering health insurance premiums, and continuing efforts to reduce child poverty.
To achieve these goals, the American Families Plan proposes several key initiatives:
1. **Four Years of Free Education**: The plan includes investments in education from early childhood to postsecondary levels. It proposes universal, high-quality preschool for all three- and four-year-olds and two years of free community college. Additionally, it aims to make college more affordable for low- and middle-income students, including those attending Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), and other minority-serving institutions (MSIs). The plan also focuses on improving teacher training and support.
2. **Direct Support to Families**: The plan seeks to ensure that low- and middle-income families spend no more than seven percent of their income on child care. It also proposes a national comprehensive paid family and medical leave program, which would allow people to manage their health and family responsibilities. Additionally, the plan aims to provide critical nutrition assistance to families in need and expand access to healthy meals for students.
3. **Tax Cuts for Families and Workers**: The American Families Plan extends key tax cuts from the American Rescue Plan, benefiting lower- and middle-income workers and families. This includes the Child Tax Credit, the Earned Income Tax Credit, and the Child and Dependent Care Tax Credit. The plan also extends expanded health insurance tax credits, which are currently lowering health insurance costs for millions of people.
Economic research indicates that the investments proposed in the American Families Plan will yield significant returns, boosting productivity and economic growth, and generating savings for states and the federal government. For instance, investing in high-quality early childhood programs for low-income children can result in substantial benefits, including increased wages, improved health, and reduced crime.
The American Families Plan includes $1.8 trillion in investments and tax credits over ten years, with $1 trillion allocated for investments and $800 billion for tax cuts. To fund these initiatives, President Biden proposes measures to ensure that the wealthiest Americans pay their fair share in taxes, while ensuring that no one earning $400,000 or less will see a tax increase. Combined with the American Jobs Plan, this legislation is expected to be fully paid for over 15 years and reduce deficits in the long term.
The plan also emphasizes the importance of early childhood education. Research shows that children who attend universal pre-K are more likely to excel academically and less likely to repeat grades. Universal pre-K also increases labor force participation among parents, particularly women, thereby boosting family earnings and driving economic growth. President Biden’s plan calls for a $200 billion investment in free, high-quality preschool for all three- and four-year-olds, prioritizing high-need areas and ensuring inclusive and accessible options for families.
In addition to preschool, the plan proposes two years of free community college for all Americans, including DREAMers. This $109 billion initiative aims to address the decline in college enrollment, particularly among low-income students and students of color. The plan also includes a $62 billion grant program to invest in completion and retention activities at colleges and universities serving disadvantaged communities.
Furthermore, the American Families Plan seeks to support HBCUs, TCUs, and MSIs with a $39 billion program providing two years of subsidized tuition for students from families earning less than $125,000. An additional $5 billion is allocated to expand institutional aid grants, and $2 billion is directed towards building a pipeline of skilled healthcare workers with graduate degrees.
Recognizing the critical role of teachers, the plan proposes a $9 billion investment in addressing teacher shortages, improving teacher preparation, and boosting teacher diversity. This includes doubling scholarships for future teachers, investing in Grow Your Own programs, and providing opportunities for current teachers to earn in-demand credentials.
The American Families Plan also addresses the high cost of child care, which often forces parents, especially women, to reduce work hours or leave the workforce. The plan proposes a $225 billion investment to make child care affordable, ensuring that families pay no more than seven percent of their income on child care for children under five. This initiative is expected to save the average family $14,800 per year on child care expenses and generate lifetime benefits for millions of children.
In summary, President Biden’s American Families Plan represents a comprehensive effort to support American families, invest in education, and build a stronger, more inclusive economy. While acknowledging the challenges ahead, Biden remains committed to these transformative investments, even as he admits to a supporter that his political career might be nearing its end.
Source: Various sources
