Right now, too many Americans are struggling to meet basic needs and cover basic expenses. An economy that fails so many of us is not only unfair, it’s unsustainable. The American Families Plan is a once-in-a-generation investment in the foundations of middle-class prosperity – education, health care, and child care. It recognizes that policies to make life easier for American families must focus on bringing everyone along: inclusive of gender, race, or place of residence – urban, suburban, or rural. Beyond helping American families meet the needs of today, this plan powers the innovation and growth of tomorrow.
Here’s what the American Families Plan will do:
Investing in education is a down payment on the future of America. The American Families Plan will make transformational investments from early childhood to postsecondary education so that all children and young people are able to grow, learn, and gain the skills they need to succeed.
The American Families Plan will provide:
- Two free years of community college for millions of Americans;
- Universal access to high-quality, free Pre-K for 3- and 4- year-olds;
- Lower college costs for low-and middle- income students at Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), and institutions such as Hispanic-serving institutions (HSIs), Asian American and Native American Pacific Islander-serving institutions (AANAPISIs), and other minority-serving institutions (MSIs);
- An increase of up to approximately $1,400 in Pell Grants and allowing DREAMers to access the funding;
- Provide support to students to increase retention and completion; and
- A $9 billion investment to strengthen teacher pipelines and address shortages, increase the number of teachers of color, and support the growth of teachers.
Our nation is strongest when everyone has the opportunity to join the workforce and contribute to the economy. But many workers struggle to both hold a full-time job and care for themselves and their families.
The American Families Plan will:
- Ensure no one earning under 150% of state median income has to pay more than 7% of their income on high-quality care for children under 5
- Provide comprehensive paid family and medical leave, allowing workers to take the time they need to care for a new child, their own serious illness or a seriously ill loved one
- Expand nutrition assistance, including school meal programs and the summer nutrition benefit program, for children and families.
- Invest $3 billion in maternal health
Tax credits are a powerful tool that can help workers and families build prosperity.
The American Families Plan will:
- Make the Child and Dependent Care Tax Credit permanent, providing up to $4,000 to cover expenses related to care for a child under age 13 or dependent with a disability needing care and up to $8,000 to cover expenses for multiple children or dependents. Families making under $125,000 can claim the full credit, and families earning up to $438,000 can claim a partial credit. It will be fully refundable so low-income families who don’t owe a lot in taxes can fully benefit.
- Make the Earned Income Tax Credit Expansion for Childless Workers Permanent, benefitting 17 million low-wage workers, many of whom are essential workers including cashiers, cooks, delivery drivers, food preparation workers, and child care workers
- Extend the Child Tax Credits increases in the American Rescue Plan for another five years – increasing tax credits for child under 6 from $2,000 to $3, 600 and for child over 6 from $2,000 to $3,000
- Lower health care costs by making the American Rescue Plan’s health insurance premium reductions permanent, saving families an average of $50 per person per month
The American Families Plan is an ambitious, once in a generation investment to rebuild the middle class and invest in America’s future.
Alongside the American Families Plan, President Biden is proposing a tax reform agenda that rewards work – not wealth. The agenda includes the reversal of many tax giveaways from the 2017 tax law, as well as reforms to the tax code to ensure that the wealthy will play by the same rules as everyone else. The resulting revenue will pay for the American Families Plan investment in education and childcare, tax relief for American families, and reduction in child poverty.