Category Archives: Economic Development

FACT SHEET: The New Small Business Boom Under the Biden-Harris Administration

Market in Mendocino, California. Since day one in office, President Biden has focused on providing America’s small businesses with the tools and resources they need to reopen, rehire, and build back better. To-date, the Biden-Harris Administration has distributed more than $400 billion in critical relief to more than 6 million small businesses © Karen Rubin/news-photos-features.com

Since day one in office, President Biden has focused on providing America’s small businesses with the tools and resources they need to reopen, rehire, and build back better. To-date, the Biden-Harris Administration has distributed more than $400 billion in critical relief to more than 6 million small businesses.

President Biden’s efforts have not only helped millions of Main Street businesses keep their lights on and employees on payroll, they have enabled a remarkable rebound in small business activity, with small business demand for labor and inventories near record highs. According to a leading survey of small business owners, the share of small businesses planning to create new jobs in the next three months is higher than it ever was at any point during the previous Administration. Another recent survey of small business owners found that 71 percent are optimistic about their own performance in 2022, up from 63 percent one year ago. The broader economic recovery – one of the fastest on record – has also helped spur a surge in entrepreneurship. Americans are applying to start new businesses at a record rate, up about 30 percent compared to before the pandemic.



The historically high level of new business applications has taken place amidst the Biden-Harris Administration’s historic bottom-up approach to economic recovery. Soon after taking office, the Biden-Harris Administration enacted the American Rescue Plan (ARP), which provided direct relief to families and small businesses and supported the vaccination of more than 200 million Americans. Through the combination of ARP investments and existing emergency relief programs, the Biden-Harris Administration distributed more than $400 billion in critical relief to more than 6 million small businesses. The ARP also provided thousands of entrepreneurs with the personal and financial security to launch their own business.  This support included $1,400 per-person Economic Impact Payments, expanded Child Tax Credit payments of up to $300 per child per month, Affordable Care Act credits and COBRA premium support to ensure health care coverage remained available, and an expansion of the Employer Retention Credit, including expanding eligibility to recent startups. 

Despite the historic progress made to-date, the Biden-Harris Administration remains committed to helping America’s new small businesses grow, create jobs, and provide the essential goods and services our communities depend on. Specifically, the Biden-Harris Administration is:Expanding access to low cost loans and investments. The Treasury Department is working with all states and territories plus 400 Tribal governments on standing up small business lending and investment programs as part of the $10 billion State Small Business Credit Initiative (SSBCI) established through the ARP. and By this summer, the first wave of programs will launch, unlocking billions of dollars in new lending and investment capital for small businesses in big cities and small towns all across America. Small businesses can also continue to access the Small Business Administration’s (SBA) traditional 7a, 504, and microloan programs, which collectively reached record high loan volume in Fiscal Year 2021 by providing $44.8 billion through more than 61,000 loans.

Increasing access to billions of dollars in federal contracts for small businesses. Last year, the Biden-Harris Administration announced its strategy for increasing the share of federal procurement dollars that go to socially disadvantaged businesses by 50% by 2025.  President Biden’s Bipartisan Infrastructure Law also includes a historic procurement effort designed to support small businesses and tackle long standing inequities in the contracting system. Among other things, the legislation directs DOT to attempt to award more than $37 billion in federal contracts to small disadvantaged business contractors.

Helping small businesses hire new employees and reach new customers by providing universal broadband.  Broadband internet is necessary for Americans to do their jobs and increasingly important for small business owners all across America. President Biden’s Bipartisan Infrastructure Law will invest $65 billion in broadband infrastructure, helping ensure that every American has access to reliable high-speed internet and creating new opportunities for small businesses nationwide.

12 States Set New Records on Low Unemployment as National Rate Fell to 3.9% 

Meanwhile, new employment data continues to show that the labor market has improved under President Biden, with 42 states reporting drops in unemployment in December and 12 states reaching record lows. No states experienced a decline in employment. Year-over-year payroll figures have now increased in 48 states and DC. 

“Thanks to the President’s economic plan and his success in getting Americans vaccinated, the unemployment rate nationally dropped to 3.9% – four years earlier than expected, wages are up, and 6.4 million jobs have been created – the most in any one year on record. The President’s economic strategy is working: strengthening our economic growth and creating millions of jobs across the country,” the White House stated.

Biden Administration Details Ways Partnership with Nation’s Mayors Improved Lives, What Build Back Better Could Further Achieve

Since the start of his Administration, President Biden has prioritized local partnerships and has worked closely with mayors across the country who have been instrumental as trusted sources of information about the COVID-19 pandemic and vaccines, and set up mass vaccination sites. As a result, in less than one year, over 200 million Americans have been vaccinated © Karen Rubin/news-photos-features.com

On the occasion of President Joe Biden’s address to the U.S. Conference of Mayors, January 21, the White House issued a fact sheet detailing some of the ways the Biden-Harris Administration is working with Mayors to deliver for communities across the country, and what passing the Build Back Better agenda could mean:
 
Getting Shots in Arms and Saving Lives
Since the start of his Administration, President Biden has prioritized local partnerships and has worked closely with mayors across the country who have been instrumental as trusted sources of information about the COVID-19 pandemic and vaccines.
 
Working with local governments, the Administration has shipped over 160 million pieces of personal protective equipment – gloves, gowns, masks – to protect frontline health care workers in cities across the United States. Since first launching surge response teams on July 1st, the Administration has deployed over 3,000 personnel to 39 states and 4 U.S. territories. The Administration also recently worked with several mayors and local jurisdictions to surge federal testing support and federal test sites to several cities.
 
Over 115 mayors across the country joined the White House, HHS, and We Can Do This campaign to launch a Mayors Challenge to Increase COVID-19 Vaccinations. This campaign was instrumental in increasing the adult vaccination rate through mayors sharing best practices and launching innovative efforts to boost vaccinations, including grassroots outreach, mobile and neighborhood vaccine clinics, incentives, prizes, and other efforts.

  • Richmond, VA Mayor Levar Stoney as co-lead of the Mayors Challenge, launched the #HotVaccinatedSummer campaign with the Richmond Health Department focused on taking the vaccine to residents through mobile vaccination units, pop-up vaccine sites at grocery stores, food pantries, apartment complexes, and churches, and neighborhood block parties.
     
  • Baton Rouge Mayor Sharon Weston Broome and New Orleans Mayor LaToya Cantrell, mayors of Louisiana’s two largest cities, launched a month-long, inter-city “New Orleans vs Baton Rouge COVID challenge” to motivate citizens to get vaccinated.
     
  • Detroit, MI Mayor Mike Duggan launched an innovative “Good Neighbor Program” where residents received gift cards for driving their neighbors to get vaccinated, as well as a door-to-door vaccination education canvassing effort.
     
  • San Antonio, TX Mayor Ron Nirenberg along with making pop-up vaccine clinics accessible, collaborated with local artists to create murals reminding residents of the importance of getting vaccinated.

Getting People Back to Work
President Biden has grown the economy faster than any first-year administration ever with 6.4 million jobs added, the most in one year on record. The unemployment rate is 3.9% – four years faster than projected because of the American Rescue Plan. The Biden-Harris agenda has provided substantial resources to state and local governments to expand and improve America’s workforce development system so that workers of all kinds from diverse communities will be prepared and successful in good-paying union jobs.
 
The American Rescue Plan (ARP) included $350 billion in state and local fiscal recovery funds that governments can use to assist workers who want and are available to work – including job training, public jobs programs, job fairs, childcare, transportation, hiring bonuses, and subsidized employment efforts). The ARP also invested $3 billion in the Commerce Department’s Economic Development Administration (EDA) to assist communities in their efforts to build back better from the pandemic, including $1 billion for the Build Back Better Regional Challenge and $500 million for a Good Jobs Challenge that will support sector partnerships that bring employers, unions, non-profits, community colleges, training providers, and local governments together to enhance local training and hiring efforts.

  • Building Bridges to Infrastructure Jobs:
    • Washington, DC is using ARP resources to expand the city’s Infrastructure Academy to ensure a diverse workforce is ready to fill the infrastructure jobs that will be created by the historic bipartisan infrastructure law.
    • Milwaukee, WI has dedicated ARP funds to launch a lead abatement workforce development program and an Earn and Learn program which assists young people entering manufacturing and other high-skill jobs.
    • Phoenix, AZ is using Rescue Plan funds to partner with local community colleges and the private sector on job training programs that not only will re-skill and re-employ individuals for new careers in high demand workforce areas, such as manufacturing, construction, and the region’s emerging semiconductor industry.
       
  • Supporting our Essential Education Workers:
    • Seattle, WA used ARP fiscal recovery funds to provide premium pay for local child care workers, up to $835 per worker who have been there for at least 6 months.
       
  • Bolstering our Health Care Workforce:
    • Chicago, IL is leveraging ARP funds to build a 2,200 public health workforce working as vaccine ambassadors and addressing vaccine resistance.
    • New York City is dedicating ARP funds to bolster their public health workforce through the New York City Public Health Corps program, which will focus on a range of public health needs – from vaccine access, to primary care, to mental health counseling.

Building a Better America
Since President Biden signed the Bipartisan Infrastructure Law, the Biden-Harris Administration has hit the ground running with a focus on fostering strong partnerships and working with mayors to implement the largest long-term investment in America’s infrastructure and competitiveness in nearly a century. The historic Bipartisan Infrastructure Law will rebuild crumbling road and bridges, replace lead pipes, help provide high-speed internet to every family in America, and produce concrete results that change people’s lives for the better. These results will create good-paying, union jobs, support domestic manufacturing and supply chains, and position the United States to win the 21st century. As the Administration implements the law, it is following through on President Biden’s commitment to ensure investments advance equity and racial justice, reach communities all across the country – including rural communities, communities of color, and disability communities – and strengthen the nation’s resilience to climate change. Since the enactment of the Bipartisan Infrastructure Law, the Biden Administration has it the ground running. Some of the key actions since the law’s passage include:

  • Understanding the importance of strong partnership with local governments to deliver results on the Bipartisan Infrastructure Law, the White House appointed Mitch Landrieu, former Mayor of New Orleans and former President of the US Conference of Mayors, as Infrastructure Implementation Coordinator.
     
  • The U.S. Department of Transportation (USDOT) and Federal Highway Administration (FHWA) announced $27 billion in funding to replace, repair, and rehabilitate bridges across the country over the next five years, including many locally-owned “off system” bridges.
     
  • The U.S. Army Corps of Engineers announced that it will invest more than $14 billion of funding for over 500 projects across 52 states and territories. These key projects will strengthen the nation’s supply chain, provide significant new economic opportunities nationwide, and bolster our defenses against climate change.
     
  • USDOT awarded $1 billion in Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grants to invest in 90 major projects across 47 states funding that will be boosted by an additional $7.5 billion in the Bipartisan Infrastructure Law.
     
  • The Federal Aviation Administration (FAA) at USDOT announced $3 billion for 3,075 airports across the country that can use investments to upgrade critical infrastructure.
     
  • The Vice President announced the Administration’s Lead Pipe and Paint Action Plan, which includes action items focused on collaboration with local partners to accelerate the replacement of lead pipes over the next decade. As part of this plan, EPA announced $7.4 billion in funding allocations for states to upgrade America’s aging water infrastructure, sewerage systems, pipes and service lines, and more.
     
  • The Federal Communications Commission launched the Affordable Connectivity Program providing broadband subsidies of up to $30/month for low-income households (up to $75/month for households on Tribal Lands) and up to $100 towards the purchase of a desktop, laptop or tablet computer.
     
  • EPA announced $1 billion in funding to clean up 49 Superfund sites across 24 states to accelerate cleanup at dozens of other sites across the country, stop toxic waste from harming communities, and create good-paying jobs.
     
  • The Department of the Interior released initial guidance for the states interested in applying for funding to cap and plug orphaned oil and gas wells that reduce methane emissions and create jobs, with 26 states expressing interest in a portion of the $4.7 billion in funding for well plugging, remediation and restoration available in infrastructure programs.
     
  • The Department of Energy launched a new Building a Better Grid initiative to accelerate the deployment of new transition lines, and it released a notice of intent to inform the design and implementation of this historic investment.

The Bipartisan Infrastructure Law includes billions of dollars in competitive funding available to cities, towns, and municipalities across dozens of new and existing programs. As local governments begin to rebuild and reinvest in their communities, the Biden-Harris Administration stands ready to support local leaders as they combine funding streams, organize around their priorities, and build local support for long overdue infrastructure projects. The White House released a fact sheet highlights 25 already available or soon-to-be-available sources of funding that local governments – particularly cities – can compete or apply for directly. The White House will also be releasing a comprehensive guidebook of all available funding from the Bipartisan Infrastructure Law in the coming weeks.
 
Addressing Supply Chain Blockages
As our economy has turned back on from the unprecedented shutdown resulting from the pandemic, our supply chains have been strained. The Administration is working closely with  mayors and local governments across the country to mitigate supply chain blockages and ensure shelves are stocked.

  • The Administration’s port envoy has held weekly meetings with city-owned ports, including the Ports of Los Angeles and Long Beach, to identify ways to reduce congestion and move toward 24/7 operations, which reduces the emissions and traffic in communities.
     
  • The Department of Transportation awarded more than $241 million in discretionary grants to improve ports facilities and address supply chain disruptions in 19 cities, including Houston, TX; Brunswick, GA; Bay St Louis, MS; Tell City, IN; Alpena, MI; Delcambre, LA; Oakland, CA; Portsmouth, VA; Tacoma, WA; and Long Beach, CA.
     
  • The Administration is working to help schools experiencing challenges purchasing and reliably obtaining food for their meal plans. USDA has committed $1.5 billion for schools and states to purchase foods including funding to purchase local foods from historically underserved producers and announced an adjustment in school meal reimbursements that put an estimated $750 million more into school meal programs across the nation this year.

Advancing Local Climate Action
On Day One, President Biden rejoined the Paris Agreement, reestablished U.S. leadership, and renewed the federal government’s partnership with the states, cities, Tribes, and localities that carried forward America’s progress on climate. Since then, President Biden has deployed clean wind and solar energy across the country, jumpstarted an electric vehicle future that will be built in America, advanced environmental justice in underserved communities, and taken aggressive action to make our country more resilient to climate change and extreme weather.
 
Today, President Biden will announce how the Biden-Harris Administration is teaming up with states, cities, labor, and industry to launch the Building Performance Standards Coalition, a first-of-its-kind partnership between 33 state and local governments dedicated to delivering cleaner, healthier, and more affordable buildings. States and cities part of the coalition will design and implement building performance standards that create good paying union jobs, lower the cost of energy bills for consumers, keep residents and workers safe from harmful pollution, and cut emissions from the building sector.
 
The Administration is also empowering local leaders to advance climate solutions across other sectors—for example:

  • The Department of Energy set a new National Community Solar Partnership target of powering 5 million homes by 2025, with on-demand technical assistance available to local governments, and launched the SolarAPP+ tool to help them speed up permitting of rooftop solar installations.
     
  • The Department of Transportation announced $182 million in grants for transit agencies to deploy zero-emission and low-emission transit buses, including awards to the Chicago Transit Authority; Anaheim, CA; Fort Collins, CO; Lawrence, KS; Jackson, MS; Fayetteville, NC; Lincoln, NE; Norman, OK; and more.
     
  • The EPA announced $50 million for environmental justice initiatives using ARP funds, including water infrastructure job training in Baltimore, MD; indoor air quality improvements in Fort Collins, CO; and outreach on asthma and environmental hazards in Hartford, CT. 
     
  • FEMA announced $1 billion for the FY2021 Building Resilient Infrastructure and Communities program, available for cities and other levels of government to proactively invest in community resilience to hurricanes, wildfires, and other disasters.
     
  • In November 2021, President Biden and 15 bipartisan mayors representing communities across the country participated in COP26, where the President announced bold plans to reduce methane emissions, create clean energy jobs, and build back better with infrastructure initiatives that advance prosperity and combat the climate crisis.

Addressing Gun Violence and Crime
During the President’s first year in office, the Biden-Harris Administration has partnered with mayors across the country on actions to reduce gun violence and has provided historic levels of funding for community-oriented policing and expanding community violence interventions (CVI) – neighborhood-based programs proven to combat gun violence. The Administration has made historic levels of funding from the American Rescue Plan – including $350 billion in state and local funding – available to state and local governments for law enforcement purposes to advance community policing strategies and community violence interventions.

  • Working with 16-jurisdictions, the White House launched the Community Violence Intervention Collaborative, a cohort of mayors, law enforcement, CVI experts and philanthropic organizations committed to using ARP funding to increase investment in their community violence intervention infrastructure and share best practices. 
     
  • Cities including Milwaukee, WI; Albuquerque, NM; Syracuse, NY; and Mobile, AL responded to the President’s call by committing and deploying ARP funds for advancing community-oriented policing.
  • Mayors from cities across the country including Seattle, WA; Buffalo, NY; and Atlanta, GA have committed to deploy ARP fund for community violence interventions following a memo from Senior White House advisors on how state and local officials can implement ARP funding into CVI work.
     
  • Cities across the country including St. Louis, MO and Tucson, AZ committed to investing ARP funding in public safety strategies such as summer jobs for young adults and substance abuse and mental health services.

Prevent Housing Instability and Homelessness
During the President’s first year in office, the Biden-Harris Administration partnered with mayors across the country to keep Americans housed. The American Rescue Plan (ARP) included over $21 billion for the Emergency Rental Assistance (ERA) program. These funds, together with $25 billion signed into law under the previous Administration but implemented under this Administration, enabled households to catch up on rent and avoid evictions. State and local grantees obligated over $25 billion in ERA in 2021, and these funds contributed to a historically low eviction filing rate. Also included within ARP were $5 billion in supplemental funding for HOME, which enables state and local governments to create and preserve affordable housing, and $5 billion in emergency housing vouchers to help people experiencing and at risk of homelessness secure housing.

  • In June, 46 cities joined the White House to create eviction prevention action plans as part of a first-of-its-kind summit. More than 100 eviction diversion programs were created or expanded as part of this partnership with the White House and local leaders.
     
  • Mayors from Louisville, Milwaukee, San Antonio, and Boston shared best practices in subsequent White House events including strategies to prevent evictions and distribute rental assistance to renters and landlords in need.
     
  • Dozens of mayors have signed onto House America, a federal initiative aimed at maximizing the ARP resources to address homelessness. The goal of this initiative is to cumulatively re-house 100,000 households experiencing homelessness and add 20,000 new units of affordable housing into the development pipeline by the end of 2022.

Building an Orderly, Fair, and Humane Immigration System
The Biden-Harris Administration is working to build a humane, orderly, and fair 21st century immigration system at the border and beyond. One that invests in smart technology and infrastructure at the border, that prioritizes our resources and values immigrants living in our country and contributing to our communities for generations, and that once again welcomes refugees and is a beacon of light for those seeking safe haven.
 
Since day one, the Biden-Harris Administration took steps to undo the wrongdoings of the previous Administration, including getting rid of the Muslim ban, taking steps to protect DACA recipients, and restoring our asylum system. On day one, President Biden also sent his immigration bill to Congress – The U.S. Citizenship Act – which laid out the components needed to build an updated immigration system that reflects our values and responds to our hemisphere’s current needs.
 
Working with the Department of Homeland Security, the Department of State and non-profit organizations in Mexico and the United States, the Administration assisted 13,000 people in the wind down of the Migrant Protection Protocol to fight their cases in the United States. The Administration also designated Temporary Protected Status (TPS) to Haiti, Venezuela, Yemen, Syria, Somalia, and Burma, and expanded to El Salvador and Honduras.
 
The President tasked Vice President Harris with leading efforts to address the root causes of migration from Mexico, Guatemala, El Salvador, and Honduras. The Vice President announced $310 million in urgent humanitarian relief in April 2021, in addition to the President’s FY22 budget request for $861 million for Central America. The Vice President also secured $1.2 billion from the private sector to create job programs and invest in the economic stability and prosperity for our partner countries. In addition to the work the Vice President is leading, the Administration is working with countries in South America and leaders in the hemisphere to address migration as a regional issue that necessitates regional leadership and a regional response.
 
The Administration remains committed to immigration reform, to restoring asylum, and to working with partners to ensure the safety, security, and dignity of immigrants in the region:

  • Engaged mayors and cities to amplify the broad sweeping impact President Biden’s U.S. Citizenship Act would have on all 11 million undocumented immigrants, including farm workers and individuals with Temporary Protected Status.
  • Partnered with cities including San Diego, Long Beach, Pomona, Dallas, Houston, and San Antonio to stand up Emergency Influx Sites to provide temporary shelter and care for thousands of unaccompanied children.
     
  • Awarded $110 million in supplemental humanitarian funding to the National Board for Emergency Food and Shelter Program eligible to cities and services providers providing humanitarian assistance to migrants at the southern border.
     
  • Regularly engaged bipartisan border mayors to discuss and coordinate rebuilding America’s border management and asylum systems that were previously gutted by the prior administration. Additionally, engaged local elected leaders in the Rio Grande Valley, San Diego, and El Centro border sectors to protect border communities from the physical dangers resulting from the previous administration’s approach to border wall construction.

Welcoming Refugees and Resettlement Efforts
The Biden-Harris Administration has taken a whole-of-America approach to safely, securely, and effectively welcome more than 76,000 Afghan allies to the United States through the Operation Allies Welcome.
 
In close coordination with Departments and Agencies across the Federal government, the Administration has worked with state and local officials; refugee resettlement organizations; veterans; faith, private sector, and non-profit leaders to ensure Afghans are set up for success in their new communities. The White House Operation Allies Welcome team provided briefings to USCM and visited resettlement sites in six states to engage with local officials and stakeholders on the frontlines of welcoming our Afghan allies. In his capacity as OAW Coordinator, Jack Markell attended the 2021 USCM Summer Meeting in Dayton, Ohio to brief mayors on their important role in the resettlement effort.

  • USCM Past President Dayton Mayor Nan Whaley and Hartford Mayor Luke Bronin led the effort for USCM’s resolution in support of Afghan resettlement and welcomed briefings from senior Administration officials to keep mayors updated on resettlement efforts
     
  • Houston Mayor Sylvester Turner worked with local resettlement agencies to raise more than $8.5 million dollars for the Houston Afghan Resettlement Fund (HARF) to help the local resettlement agencies provide additional services for Afghan evacuees
     
  • Oklahoma City Mayor David Holt collaborated with the local resettlement agency to identify additional funding stream to for affordable housing for Afghan evacuees
     
  • Lansing Mayor Andy Schor worked with the local school district to ensure a warm welcome to arriving Afghans students and families.
     

Sacramento Mayor Darryl Steinberg coordinated with state, county, and local leaders to create a new coalition called the American Network of Services for Afghanistan Refugees (ANSAR) to assist in meeting the needs of Afghan families.

In addition to President Biden, ten members of the President’s Cabinet spoke at the USCM Winter Meeting, including Secretary of the Treasury Janet Yellen, Secretary of Health and Human Services Xavier Becerra, Secretary of the Department of Homeland Security Alejandro Mayorkas, Secretary of Labor Marty Walsh, Secretary of Education Miguel Cardona, Secretary of Transportation Pete Buttigieg, Secretary of Commerce Gina Raimondo, Secretary of Housing and Urban Development Marcia Fudge, Attorney General Merrick Garland, and EPA Administrator Regan. Senior Administration officials including ARP Coordinator Gene Sperling, Infrastructure Implementation Coordinator Mitch Landrieu, and Director of Intergovernmental Affairs Julie Rodriguez will also speak at the event.

President Biden Shows Benefits of Federal-Local Government Partnership in Address to US Conference of Mayors

President Joe Biden addresses 200 mayors at the US Conference of Mayors: “You understand the cost if we fail to act.  We need the voice of mayors telling the stories of what your communities need, and the impact we’re making on people’s lives or not making.  If we can get this done — I believe this with every fiber of my being: If we can get this done, there’s no limit what Americans can achieve.  So, let’s continue to give working families a fighting chance.” © Karen Rubin/news-photos-features.com via msnbc.

On January 21, President Biden addressed over 200 bipartisan mayors during their annual U.S. Conference of Mayors (USCM) Winter Meeting. This was the President’s first time addressing the entire USCM since taking office. At this year’s convening, the President highlighted the strong partnership between his Administration and mayors during the past year to tackle unprecedented crises, rebuild the economy, and deliver results for working families. The President also discussed ways to further partner with cities on implementing the American Rescue Plan (ARP) and Bipartisan Infrastructure Law, and the importance of passing the Build Back Better Act. 

Here is an edited transcript of President Biden’s remarks:

Mayors carry the quality of the people’s lives on your shoulders.

Everything you do every day affects their lives more than almost anything anybody else does.  And you can make or break a person’s day.  “Will the bus get me home on time?”  It sounds silly but, “Will the garbage get be picked up?”  “Will I be safe walking in the park?”

These are the bigger questions: “Can I afford to give my family a good life?”  “Will my kids have a chance to get a good job someday?”  “How will I rebuild from the fire or the storm?”

You know, all of these questions, they’re not partisan, but they’re practical.  People they look to are you…

That’s why, when I put together my Cabinet, I called on former mayors –Tom Vilsack was a governor; he was also a mayor.  Marcia Fudge, a mayor. Marty Walsh a mayor in Boston.  Pete Buttigieg was a mayor.  And I picked Mitch Landrieu to oversee the implementation of the infrastructure law, which is over a $1.2 trillion, because he knows how mayors get things done. (Applause.) .. Because mayors know the measure of success isn’t scoring partisan points, it’s did you fix the problem…

 
The infrastructure law is a perfect example of what we can achieve when we tackle problems the way mayors do.  Everybody in America knows we’ve fallen behind on infrastructure.  So we came together — Democrats and Republicans — and did something about it…

And, by the way, I want to thank you all.  More than 360 of you signed a letter that was sent to me when we were trying to get this legislation passed.  Three hundred and sixty of you.  You lobbied Congress to get it done, and it’s the reason it got done…  

And now, after years of dead-ends and broken promises, not only has “Infrastructure Week” finally arrived — (applause) — but we can literally, because of you, look forward to an “Infrastructure Decade.”…

We’ve announced billions of dollars for highways, ports, airports, water and sewage systems, high-speed Internet; funding to clean up the rivers in Ohio, chemical plants and sites in Florida, polluted lakes in Michigan and dozens of other sites; a new program to cap and plug orphaned oil and gas wells spewing methane into the air, cleaning up the communities that, in fact, they’re affecting, while [creating] good-paying jobs…

A new initiative to bolster our energy grid with stronger transmission lines and towers to keep the power flowing more reliably and, consequentially, more secure energy supply…

You know, more forest, homes, buildings, and businesses have been burned to the ground than make up — if you’re taking the square miles — than the entire state of New Jersey, from New York all the way down to Cape Henlopen.  That’s how much has burned to the ground.  A lot of it because of the lack of resilience in those towers that get blown over and the wires snap…


Last week, we rolled out a historic investments in our nation’s bridges, like the one I visited in New Hampshire, where restrictions forced school buses and fire trucks to go 10 miles out of their way just to get across a small river…

We’re going to upgrade thousands of bridges, creating good-paying jobs, cutting commute times, ensuring that as we build back, no community gets left behind.

Folks, that mayor’s view of problem-solving is exactly what we brought to the American Rescue Plan.  It’s designed so that you’d be able to have the resources and the flexibility to take both the short-term and long-term challenges created by this pandemic. A major part of the Rescue Plan was the $350 billion we allocated to state and local budgets.  And again, because of you, over $100 billion of that went directly to cities and counties, not through anybody.  (Applause.)  A hundred billion.

It was not easy to get done, but it was important to get done because you know it’s needed.  You didn’t have to go through your state legislature — or your governor – to get the money.

Today, communities are still putting those funds to work — keeping people on the job, connecting people to better jobs…

Use your funds to cover childcare costs or temporary paid leave to help certain workers dealing with Omicron; to build pathways to better jobs through union-based apprenticeships and on-the-job training; to give people in every ZIP code a chance to deal for themselves and deal them into this booming economy.

That also means building more affordable housing so people can have safe places closer to their jobs.

Funding proven programs to help fight violent crime.  We shouldn’t be cutting funding for police departments.  I proposed increasing funding… 


The truth is we have an incredible opportunity ahead of us this year.  We still have a lot of work to do to defeat COVID, to bring down costs for families.

But just look at what we’ve accomplished together so far, even in the face of those headwinds.

In 2021, more jobs are created in America than ever in a single year in American history.  More jobs — over 6 million.  The unemployment rate dropped more than any year in American history.  (Applause.)   

Income — incomes for folks working frontline jobs in service industries rose more than any year in history — the folks at the bottom of the economic rung.

We lowered child poverty in this country by nearly 40 percent — more than any time in U.S. history.  (Applause.)  

You all know this: Business applications grew by nearly 30 percent last year — more than any year in history.  If they’re saying everything is so bad, why are people fighting to open businesses?

More Americans gained health insurance than any year in history.

These are facts. 

To confront the climate crisis, we deployed more solar wind, batteries, and electric vehicles than ever, ever before.

And we’re teaming up with mayors, labor, and industry to save families and businesses money by improving energy efficiency in our buildings.

And in the battle against the deadly virus, we’ve gone from putting 2 million shots — vaccinations – in people’s arms to 210 million Americans fully vaccinated. (Applause.)

And you mayors have been critical partners…

And we still face tremendous challenges, though.  But together, we’ve proven that we can get big things done in this country.

Last year, with your help, we laid the groundwork.  This year, we have to build it.  The biggest weapon in our arsenal is the Build Back Better Act. Nothing is going to do more to ease pressure on families…

Every mayor knows if people can’t find and afford childcare, they can’t work.  (Applause.)  Some of your cities, it’s 14-, 15,000 bucks a year for childcare.  That’s why we have nearly 1.2 million extremely qualified women who haven’t been able to return to the workforce.

We can cut the cost of childcare in half and fix that problem.

Health insurance: We can reduce the cost for families — and we’ve done for $600 per year.

On climate: Extreme weather disasters cost communities $145 billion last year.  That’s how much we spent because of weather-related crises.  $145 billion.  By investing in resilience and clean energy technology, we can do something about that.

To give relief to families, in the American Rescue Plan we had the Childcare Tax Credit.  That did reduce child poverty by 40 percent.  There’s no reason it shouldn’t continue.  (Applause.)

And on education — on education: Today, about half of the three- and four-year-olds are enrolled in early childhood education…

We can do this and more on healthcare, nutrition, and a host of other issues.

And, folks, here’s the point: We can do it without increasing inflation or the deficit.

Seventeen Nobel laureates in economics wrote a letter to me recently, affirming that this bill would reduce inflationary pressures on the economy, not increase — reduce it.  (Applause.)

And by the way — by the way, it’s entirely paid for.  (Applause.)  Every single penny.  (Applause.)  And not a single person making less than $400,000 a year will pay a single additional penny in federal taxes.  Not a single penny.  (Applause.)

And, by the way, I’m a capitalist.  I’m not a socialist.  If you can make $1 billion or $10 million, good for you.  Just begin to pay your fair share.  Pay a little bit.  (Applause.)

We can pay for all this by just making sure that the wealthy — making sure that the wealthy and the biggest corporations pay their fair share…

Look, we can tackle all these challenges just like we did with the Rescue Plan, the infrastructure law, and the fight against COVID, but we can’t do it without you… 

You understand the cost if we fail to act.  We need the voice of mayors telling the stories of what your communities need, and the impact we’re making on people’s lives or not making.  If we can get this done — I believe this with every fiber of my being: If we can get this done, there’s no limit what Americans can achieve.  So, let’s continue to give working families a fighting chance. 

Biden: House Passes Once-In-A-Generation $1.2 Trillion Infrastructure Investment & Jobs Act

The Infrastructure Investment and Jobs Act will upgrade our nation’s airports and ports to strengthen our supply chains and prevent disruptions that have caused inflation. This will improve U.S. competitiveness, create more and better jobs at these hubs, and reduce emissions. © Karen Rubin/news-photos-features.

Upon the House passing the historic, $1.2 trillion bipartisan Infrastructure Investment and Jobs Act, President Joe Biden issued this statement:

Tonight, we took a monumental step forward as a nation.

The United States House of Representatives passed the Infrastructure Investment and Jobs Act, a once-in-generation bipartisan infrastructure bill that will create millions of jobs, turn the climate crisis into an opportunity, and put us on a path to win the economic competition for the 21st Century.

It will create good-paying jobs that can’t be outsourced. Jobs that will transform our transportation system with the most significant investments in passenger and freight rail, roads, bridges, ports, airports, and public transit in generations.

This will make it easier for companies to get goods to market more quickly and reduce supply chain bottlenecks now and for decades to come. This will ease inflationary pressures and lower costs for working families.

The bill will create jobs replacing lead water pipes so every family can drink clean water.

It will make high-speed internet affordable and available everywhere in America.

This bill will make historic and significant strides that take on the climate crisis. It will build out the first-ever national network of electric vehicle charging stations across the country. We will get America off the sidelines on manufacturing solar panels, wind farms, batteries, and electric vehicles to grow these supply chains, reward companies for paying good wages and for sourcing their materials from here in the United States, and allow us to export these products and technologies to the world.

It will also make historic investments in environmental clean-up and remediation, and build up our resilience for the next superstorms, droughts, wildfires, and hurricanes that cost us billions of dollars in damage each year.

I’m also proud that a rule was voted on that will allow for passage of my Build Back Better Act in the House of Representatives the week of November 15th.

The Build Back Better Act will be a once-in-a-generation investment in our people.

It will lower bills for healthcare, child care, elder care, prescription drugs, and preschool. And middle-class families get a tax cut.

This bill is also fiscally responsible, fully paid for, and doesn’t raise the deficit. It does so by making sure the wealthiest Americans and biggest corporations begin to pay their fair share and doesn’t raise taxes a single cent on anyone making less than $400,000 per year. 

I look forward to signing both of these bills into law.

Generations from now, people will look back and know this is when America won the economic competition for the 21st Century.

FACT SHEET:
The Bipartisan Infrastructure Deal

 

Today, Congress passed the Bipartisan Infrastructure Deal (Infrastructure Investment and Jobs Act), a once-in-a-generation investment in our nation’s infrastructure and competitiveness. For far too long, Washington policymakers have celebrated “infrastructure week” without ever agreeing to build infrastructure. The President promised to work across the aisle to deliver results and rebuild our crumbling infrastructure. After the President put forward his plan to do exactly that and then negotiated a deal with Members of Congress from both parties, this historic legislation is moving to his desk for signature.

This Bipartisan Infrastructure Deal will rebuild America’s roads, bridges and rails, expand access to clean drinking water, ensure every American has access to high-speed internet, tackle the climate crisis, advance environmental justice, and invest in communities that have too often been left behind. The legislation will help ease inflationary pressures and strengthen supply chains by making long overdue improvements for our nation’s ports, airports, rail, and roads. It will drive the creation of good-paying union jobs and grow the economy sustainably and equitably so that everyone gets ahead for decades to come. Combined with the President’s Build Back Framework, it will add on average 1.5 million jobs per year for the next 10 years.
 
This historic legislation will:                               

Deliver clean water to all American families and eliminate the nation’s lead service lines. Currently, up to 10 million American households and 400,000 schools and child care centers lack safe drinking water. The Bipartisan Infrastructure Deal will invest $55 billion to expand access to clean drinking water for households, businesses, schools, and child care centers all across the country. From rural towns to struggling cities, the legislation will invest in water infrastructure and eliminate lead service pipes, including in Tribal Nations and disadvantaged communities that need it most.

Ensure every American has access to reliable high-speed internet. Broadband internet is necessary for Americans to do their jobs, to participate equally in school learning, health care, and to stay connected. Yet, by one definition, more than 30 million Americans live in areas where there is no broadband infrastructure that provides minimally acceptable speeds – a particular problem in rural communities throughout the country. And, according to the latest OECD data, among 35 countries studied, the United States has the second highest broadband costs. The Bipartisan Infrastructure Deal will deliver $65 billion to help ensure that every American has access to reliable high-speed internet through a historic investment in broadband infrastructure deployment. The legislation will also help lower prices for internet service and help close the digital divide, so that more Americans can afford internet access.
 
Repair and rebuild our roads and bridges with a focus on climate change mitigation, resilience, equity, and safety for all users. In the United States, 1 in 5 miles of highways and major roads, and 45,000 bridges, are in poor condition. The legislation will reauthorize surface transportation programs for five years and invest $110 billion in additional funding to repair our roads and bridges and support major, transformational projects. The Bipartisan Infrastructure Deal makes the single largest investment in repairing and reconstructing our nation’s bridges since the construction of the interstate highway system. It will rebuild the most economically significant bridges in the country as well as thousands of smaller bridges. The legislation also includes the first ever Safe Streets and Roads for All program to support projects to reduce traffic fatalities, which claimed more than 20,000 lives in the first half of 2021.

Improve transportation options for millions of Americans and reduce greenhouse emissions through the largest investment in public transit in U.S. history. America’s public transit infrastructure is inadequate – with a multibillion-dollar repair backlog, representing more than 24,000 buses, 5,000 rail cars, 200 stations, and thousands of miles of track, signals, and power systems in need of replacement. Communities of color are twice as likely to take public transportation and many of these communities lack sufficient public transit options. The transportation sector in the United States is now the largest single source of greenhouse gas emissions. The legislation includes $39 billion of new investment to modernize transit, in addition to continuing the existing transit programs for five years as part of surface transportation reauthorization.  In total, the new investments and reauthorization in the Bipartisan Infrastructure Deal provide $89.9 billion in guaranteed funding for public transit over the next five years — the largest Federal investment in public transit in history. The legislation will expand public transit options across every state in the country, replace thousands of deficient transit vehicles, including buses, with clean, zero emission vehicles, and improve accessibility for the elderly and people with disabilities.

Upgrade our nation’s airports and ports to strengthen our supply chains and prevent disruptions that have caused inflation. This will improve U.S. competitiveness, create more and better jobs at these hubs, and reduce emissions. Decades of neglect and underinvestment in our infrastructure have left the links in our goods movement supply chains struggling to keep up with our strong economic recovery from the pandemic. The Bipartisan Infrastructure Deal will make the fundamental changes that are long overdue for our nation’s ports and airports so this will not happen again. The United States built modern aviation, but our airports lag far behind our competitors. According to some rankings, no U.S. airports rank in the top 25 of airports worldwide. Our ports and waterways need repair and reimagination too. The legislation invests $17 billion in port infrastructure and waterways and $25 billion in airports to address repair and maintenance backlogs, reduce congestion and emissions near ports and airports, and drive electrification and other low-carbon technologies. Modern, resilient, and sustainable port, airport, and freight infrastructure will strengthen our supply chains and support U.S. competitiveness by removing bottlenecks and expediting commerce and reduce the environmental impact on neighboring communities.

Make the largest investment in passenger rail since the creation of Amtrak. U.S. passenger rail lags behind the rest of the world in reliability, speed, and coverage. China already has 22,000 miles of high-speed rail, and is planning to double that by 2035. The legislation positions rail to play a central role in our transportation and economic future, investing $66 billion in additional rail funding to eliminate the Amtrak maintenance backlog, modernize the Northeast Corridor, and bring world-class rail service to areas outside the northeast and mid-Atlantic. This is the largest investment in passenger rail since Amtrak’s creation, 50 years ago and will create safe, efficient, and climate-friendly alternatives for moving people and freight.

Build a national network of electric vehicle (EV) chargers. U.S. market share of plug-in EV sales is only one-third the size of the Chinese EV market. That needs to change. The legislation will invest $7.5 billion to build out a national network of EV chargers in the United States. This is a critical step in the President’s strategy to fight the climate crisis and it will create good U.S. manufacturing jobs. The legislation will provide funding for deployment of EV chargers along highway corridors to facilitate long-distance travel and within communities to provide convenient charging where people live, work, and shop. This investment will support the President’s goal of building a nationwide network of 500,000 EV chargers to accelerate the adoption of EVs, reduce emissions, improve air quality, and create good-paying jobs across the country.

Upgrade our power infrastructure to deliver clean, reliable energy across the country and deploy cutting-edge energy technology to achieve a zero-emissions future. According to the Department of Energy, power outages cost the U.S. economy up to $70 billion annually. The Bipartisan Infrastructure Deal’s more than $65 billion investment includes the largest investment in clean energy transmission and grid in American history. It will upgrade our power infrastructure, by building thousands of miles of new, resilient transmission lines to facilitate the expansion of renewables and clean energy, while lowering costs. And it will fund new programs to support the development, demonstration, and deployment of cutting-edge clean energy technologies to accelerate our transition to a zero-emission economy. 
 
Make our infrastructure resilient against the impacts of climate change, cyber-attacks, and extreme weather events. Millions of Americans feel the effects of climate change each year when their roads wash out, power goes down, or schools get flooded. Last year alone, the United States faced 22 extreme weather and climate-related disaster events with losses exceeding $1 billion each – a cumulative price tag of nearly $100 billion. People of color are more likely to live in areas most vulnerable to flooding and other climate change-related weather events. The legislation makes our communities safer and our infrastructure more resilient to the impacts of climate change and cyber-attacks, with an investment of over $50 billion to protect against droughts, heat, floods and wildfires, in addition to a major investment in weatherization. The legislation is the largest investment in the resilience of physical and natural systems in American history.
 
Deliver the largest investment in tackling legacy pollution in American history by cleaning up Superfund and brownfield sites, reclaiming abandoned mines, and capping orphaned oil and gas wells. In thousands of rural and urban communities around the country, hundreds of thousands of former industrial and energy sites are now idle – sources of blight and pollution. Proximity to a Superfund site can lead to elevated levels of lead in children’s blood. The bill will invest $21 billion clean up Superfund and brownfield sites, reclaim abandoned mine land and cap orphaned oil and gas wells. These projects will remediate environmental harms, address the legacy pollution that harms the public health of communities, create good-paying union jobs, and advance long overdue environmental justice This investment will benefit communities of color as, it has been found that 26% of Black Americans and 29% of Hispanic Americans live within 3 miles of a Superfund site, a higher percentage than for Americans overall.

Moody’s: Build Back Better Will Add 1.5 Million Jobs a Year, Add $3 Trillion to GDP Over Decade

Moody’s notes that President Biden’s Build Back Better legislation will add 1.5 million jobs a year, add $3 trillion to GDP over a decade and “ease the financial burden of inflation for lower- and middle-income Americans by helping with the cost of childcare, eldercare, education, healthcare and housing for these income groups.” The Moody’s report concludes that, “failing to pass legislation would diminish the economy’s prospects.” © Karen Rubin/news-photos-features.com

From the White House:

According to a new report from Moody’s this morning, President Biden’s bipartisan infrastructure deal and Build Back Better Framework will add 1.5 million jobs per year on average across the whole decade, while accelerating America’s path to full employment and increasing labor force participation.
 
Moody’s also projects that total GDP will increase by nearly $3 trillion relative to the baseline over the next decade.
 
And, the Moody’s report confirms what the President has said for weeks: that these sorts of investments in making our economy more productive will keep prices stable and decrease inflationary pressure.
 
Moody’s notes that, “the legislation is also designed to ease the financial burden of inflation for lower- and middle-income Americans by helping with the cost of childcare, eldercare, education, healthcare and housing for these income groups.” The Moody’s report concludes that, “failing to pass legislation would diminish the economy’s prospects.”
 
Since President Biden took office, there has been historic job growth –  nearly 5 million new jobs, the most in any President’s first eight months on record. The average number of new unemployment insurance claims has been cut by more than 60 percent and small business optimism has returned to its pre-pandemic levels. Independent projections from the CBO, the IMF, the Federal Reserve, the World Bank, the OECD, and many others all forecast America this year reaching the highest levels of growth in decades thanks to the President’s success in getting economic relief to the middle-class and curbing the pandemic. While the American Rescue Plan is changing the course of the pandemic and delivering relief for working families, this is no time to build back to the way things were.
 
This is the moment to reimagine and rebuild a new economy by making transformational investments in our middle-class and economic competitiveness. The President’s bipartisan Infrastructure Investment and Jobs Act and Build Back Better Framework will rebuild the economy from the bottom up and the middle out, ease the burden of high costs on working families, and deliver one of the biggest middle class tax cuts ever.
 
Read more about the Moody’s report here.

Analysis: Build Back Better Legislation Will Reduce Deficits

Analysis by US Treasury tax policy expert Lily Batchelder indicates that the Build Back Better legislation would generate $2 trillion, fully paying for its investments in families, workers and climate, and actually reduce deficits. © Karen Rubin/news-photos-features.

By: Lily Batchelder, Assistant Secretary for Tax Policy

The Build Back Better invests meaningfully in American families and workers, while laying the foundation for meeting imperative climate goals. When the President released the Build Back Better framework last week, he proposed $2 trillion in savings that would more than pay for the critical investments in the legislation – and in fact generate net deficit reduction.  With the release of the text of the Build Back Better Act in the House and scoring from the Joint Committee on Taxation, we can update the estimate of fiscal savings.

The legislation would, as the President proposed, generate more than $2 trillion in savings. These savings come from ensuring large multinational corporations and wealthy Americans pay their fair share and reducing the cost of prescription drugs. These provisions will not raise taxes on any taxpayer making less than $400,000.

The table below includes the latest estimates by the Joint Committee on Taxation, Congressional Budget Office, and the Treasury Department of the revenue raising provisions in the bill. The bottom line is that the Build Back Better Act under consideration in the House of Representatives will be fully paid for and reduce the deficit.

At the crux of reforms to the tax code is a historic overhaul of the international tax regime, whose global adoption has been successfully negotiated with 136 countries representing nearly 95% of the world’s economy. As a result of these changes, the ability of large corporations to shift profits abroad will be substantially limited, and the race to the bottom in corporate taxation will no longer be a driving force weakening capital taxation. The Build Back Better Act adopts the agreed-upon 15% country-by-country minimum tax on the foreign profits of U.S. multinational corporations and includes strong incentives for any hold-out countries to join the agreement through a separate tax on companies based in such hold-out jurisdictions. Together with other international and business tax reforms and loophole closers, these provisions are estimated to generate over $350 billion in additional U.S. tax revenue.  

The Act further ensures that large, profitable corporations will pay a minimum amount of tax by imposing a 15% minimum tax on companies that report over $1 billion in profits to their shareholders. Less than 0.00075% of U.S. businesses will owe this tax in a given year, which will raise more than $300 billion over the course of the next decade.

Over $200 billion is generated from a surtax on multi-millionaires (the top 0.02% of taxpayers making $10 million or more annually), and about $400 billion comes from closing loopholes that allow some wealthy taxpayers to avoid paying Medicare taxes on their earnings and permit well-off taxpayers to offset ordinary income with business losses.

The largest pay-for in the bill is not a tax increase at all. By collecting taxes that are already owed—and disproportionately unpaid by the highest-earners—the Build Back Better Act will generate at least $400 billion in additional revenue. Over the last decade, an under-resourced IRS has been unable to appropriately focus attention on top earners who are most responsible for the tax gap. Indeed, audit rates decreased more over that period for high earners than for Earned Income Tax Credit recipients. This additional revenue will result from providing the IRS with much-needed resources to pursue wealthy tax evaders, modernize outdated technological infrastructure, and provide meaningful taxpayer services.

Even beyond their sizable revenue-raising potential, these collective policies make the American economy more competitive by reducing profit shifting, ending a corporate tax race to the bottom, and overhauling a two-tiered system of tax administration—where American workers pay what they owe, but the wealthiest often do not.

These are historic policy achievements in and of themselves—and they also pay for transformational investments that will improve the lives of American workers, our children, and the generations that will follow.    

Revenue Raisers in Build Back Better Act

 Revenue
(in billions)
 
International and Other Business Reforms
 
$371
15% Minimum Tax on the Largest Corporations$319
AGI Surtax for Multi-Millionaires$228
Medicare Tax Loophole for High Earners$252
Limit Business Losses for High Earners$160
Stock Buybacks$124
IRS Investments in Compliance, IT, and Taxpayer Services*$400
Reduce the Cost of Prescription Drugs**~$250
Other Provisions$47
 
Total
 
~$2,151
 
Unless otherwise noted, all estimates are from the Joint Committee on Taxation.

* Source: U.S. Department of the Treasury.

** Source: The framework released by the White House last week proposed repealing the prescription drug rebate rule as negotiations continued on prescription drug reform. Based on the Congressional Budget Office, adjusted downward for reforms in bipartisan infrastructure framework, this would have saved about $150 billion. Other components of the Administration estimate the deal reached on prescription drug reform announced this week, which includes additional reforms, will generate about an additional $100 billion in savings, based on Congressional Budget Office estimates of prescription drug negotiations in previous legislation. A more precise CBO estimate will be available in the future.
 

Biden Bolsters Efforts to Help Americans Return to Work

President Biden announces additional steps to help Americans return to work, saying, “We need to stay focused on creating jobs and beating this pandemic today, and building back better for tomorrow.  The American Rescue Plan is just that: a rescue plan.  It’s to get us out of the crisis and back on the track, but it’s not nearly enough.  That’s why we need the American Jobs Plan, which is an eight-year investment — an eight-year investment strategy to make sure working people of this country get to share in the benefits of a rising economy, and to put us in a position to win the competition with China and the rest of the world for the 21st century.” © Karen Rubin/news-photos-features.com via msnbc.

Over the first three full months of the Biden-Harris Administration, the economy added more than 1.5 million jobs, or more than 500,000 jobs per month on average. That compares to an average of 60,000 jobs per month in the three previous months. These three months have seen the strongest first three months of job growth of any administration.

Despite this progress, there’s more work to do to climb out of the economic crisis brought on by the pandemic. The Biden-Harris Administration is acting aggressively to ensure that the millions of Americans who remain unemployed, through no fault of their own, can find safe, good-paying work as quickly as possible. That’s why the President is announcing today that the Administration will take steps to remove barriers that are preventing Americans from returning safely to good-paying work and take steps to make it easier for employers to hire new workers.

And, the President and the Administration will reaffirm the basic rules of the unemployment insurance (UI) program. Anyone receiving UI who is offered a suitable job must take it or lose their UI benefits. A core purpose of the UI program is helping workers get back to work, and UI provides laid-off workers with temporary assistance to help pay bills and relieve hardship. By reaffirming these rules and purposes, the Administration will ensure that the UI program continues to support workers and facilitate hiring.

“Let’s be clear,” President Joe Biden stated, “our economic plan is working.  I never said — and no serious analyst ever suggested — that climbing out of the deep, deep hole our economy was in would be simple, easy, immediate, or perfectly steady.  Remember, 22 million Americans lost their jobs in this pandemic. 
 
“So, some months will exceed expectations; others will fall short.  The question is, ‘What is the trendline?  Are we headed in the right direction?  Are we taking the right steps to keep it going?’ And the answer, clearly, is yes…

“Twenty-two million people lost their jobs in this pandemic through no fault of their own.  They lost their jobs to a virus, and to a government that bungled its response to the crisis and failed to protect them. 
 
“We still have 8 million fewer jobs than we did when the pandemic started.  And for many of those folks, unemployment benefits are a lifeline.  No one should be allowed to game the system and we’ll insist the law is followed, but let’s not take our eye off the ball…

“So we need to stay focused on creating jobs and beating this pandemic today, and building back better for tomorrow.  The American Rescue Plan is just that: a rescue plan.  It’s to get us out of the crisis and back on the track, but it’s not nearly enough. 
 
“That’s why we need the American Jobs Plan, which is an eight-year investment — an eight-year investment strategy to make sure working people of this country get to share in the benefits of a rising economy, and to put us in a position to win the competition with China and the rest of the world for the 21st century.” 
 
Specifically, today the President is:

REMOVING BARRIERS THAT ARE KEEPING AMERICANS FROM RETURNING SAFELY TO GOOD-PAYING WORK

Accelerating the Provision of Assistance to Hard-Hit Child Care Providers to Get More Parents Back to Work

Between February 2020 and March 2021, 520,000 mothers and 170,000 fathers between ages 20 and 54 left the labor force and have not returned. Many need or want to work but cannot because of child care disruptions. At the same time, early childhood and child care providers – nearly all small businesses, overwhelmingly owned by women and disproportionately owned by people of color – have been hit hard by the pandemic. According to one survey, as of December, about one in four child care providers open at the start of the pandemic were closed, hindering access to care, especially for families of color. Child care providers that have stayed open have gone to enormous lengths to do so and are struggling to stay open: two in five providers report taking on debt for their programs using personal credit cards to pay for increased costs and three in five work in programs that have reduced expenses through layoffs, furloughs, or pay cuts. And, there are 150,000 fewer child care jobs today than there were at the beginning of the pandemic.

The American Rescue Plan provides funding to address the child care crisis caused by COVID-19 to help parents who need or want to work to return to their jobs. This includes funding to stabilize the child care industry so that parents can send their children to safe, healthy, stable child care environments and additional funding to help families access affordable, high-quality care, including by providing subsidized care to more than 800,000 families with the greatest need and by providing resources for hard-hit child care providers.

Today, the Department of Health and Human Services is releasing guidance to states, tribes, and territories so that states can start getting the child care stabilization funding to providers immediately. The guidance will encourage states to get funding out quickly and to make it as easy as possible for hundreds of thousands of child care providers, including centers and family-based providers, to receive the funding. It will also encourage states to allow the funds to be used broadly to meet the unique needs of providers so they can reopen or maintain essential services. It will explain, for example, how they can use the funds to bolster their workforce, cover expenses like rent and utilities, and pay for goods and services needed to stay open or reopen. And, it will provide guidance on ways providers can use funds to help them operate according to CDC guidelines, so that as parents return to work, they can have peace of mind their children are in a safe and healthy learning environment. In all, these funds will support child care providers in keeping their doors open, benefiting the parents of more than 5 million children who rely on them to stay in or return to the labor force.

And, thanks to the historic expansion of the Child and Dependent Care Tax Credit (CDCTC) in the American Rescue Plan, families can rest assured that they can receive up to half of their child care expenses this year when they file taxes for 2021. A median income family with two kids under age 13 will receive a tax credit of up to $8,000 towards this year’s expenses, compared with a maximum of $1,200 previously.

Directing the Secretary of Labor to Safely Expand States’ Reemployment Services and Workforce Development Boards’ Jobs Counseling for Unemployment Beneficiaries.

States receive federal funding for Reemployment Services and Eligibility Assessments (RESEA) of UI beneficiaries to help them find employment while ensuring they remain eligible for benefits. These services shorten workers’ time on unemployment benefits by helping them match with good jobs and confirm their eligibility for benefits. States significantly and appropriately slowed in-person RESEA meetings in the midst of historic unemployment and the COVID-19 pandemic. With the economy and jobs growing again, the President will direct the Secretary of Labor to issue guidance to states to quickly and safely – consistent with CDC and OSHA guidance – expand their RESEA programs so that more UI beneficiaries can return to work. 

Similarly, the public workforce system’s Workforce Development Boards (WDB) collectively receive hundreds of millions of dollars they can use to provide individualized career counseling, called “individual career services,” to job seekers. However, because of the pandemic’s risks, many WDBs stopped providing in-person services and had to quickly transition to remote services. Now that tens of millions of Americans have been vaccinated, and we know how to operate physical locations safely, the President will direct the Secretary of Labor to work with the public workforce system to provide the maximum level possible of individual career services to UI beneficiaries and other unemployed workers using existing resources, and in a manner consistent with CDC and OSHA guidance.

MAKING IT EASIER FOR EMPLOYERS TO HIRE NEW WORKERS

Supporting Hard-Hit Restaurants and Bars
 
Restaurants, bars, and other small businesses offering on-site food and beverages are vital to our communities and economy. From big cities to small towns, these restaurants and bars offer communities a place to gather, celebrate, and share ideas. They also employed nearly 12 percent of all workers prior to the pandemic. Despite their importance, restaurants and bars have suffered severely during the pandemic. The leisure and hospitality sector, which includes restaurants and bars, had 17 percent fewer jobs this April than in February 2020.
 
Though we have seen significant progress under the Biden-Harris Administration – leisure and hospitality added 331,000 jobs in April, by far the most of any industry and more than it added in March – there is still more work to do to help this critical sector recover. Established through the American Rescue Plan, the Biden-Harris Administration recently launched the Restaurant Revitalization Fund (RRF) – a program to aid restaurants, bars, food trucks, and other food and drink establishments. These grants will give restaurants and bars the flexibility to hire back workers at good wages. In the first two days of the program, 186,200 restaurants, bars, and other eligible businesses in all 50 states, Washington, D.C., and five U.S. Territories applied for relief.
 
Today, the Administration is sending the first grants under the program to 16,000 hard-hit restaurants. These include restaurants in states and territories throughout the country, and restaurants owned and controlled by women, veterans, and socially and economically disadvantaged individuals.
 
Providing States and Localities with the Resources They Need to Help Return Americans to Work

The American Rescue Plan delivered flexible Coronavirus State and Local Fiscal Recovery Funds that will help state and local governments hire back public sector workers; ramp up the effectiveness of their COVID response and vaccination programs to make return to work, school, and care safer; and bolster efforts to help workers negatively affected by the pandemic to train for and secure good-paying jobs. With today’s announcement, the U.S. Department of Treasury is making the first segment of these funds available to states and localities and laying out how these funds can be used to address pandemic-response needs and support the communities and populations hardest-hit by the COVID-19 crisis.

State and local employment remains 1.3 million jobs down since before the pandemic.  Learning from the mistakes of the Great Recession, when state and local government budget cuts were a drag on GDP growth for 23 of the 26 quarters following the crisis, the funds will provide these governments with the resources needed to help address challenges in returning Americans to work. This includes in the public sector, where state and local employment remains down over one million jobs since the start of the pandemic. Fiscal Recovery Funds will help bring firefighters, teachers, school staff, cops, and other public servants back to work.

Helping Employers – Especially Small Businesses – Rehire and Retain Workers Through the Extended and Expanded Employee Retention Credit
 
To help hard-hit employers rehire and retain workers, President Biden extended and expanded the Employee Retention Credit (ERC) in the American Rescue Plan. This year, the ERC offers eligible employers with 500 or fewer employees a tax credit of 70 percent of the first $10,000 in wages per employee per quarter. In other words, this refundable, advanceable credit will cover up to $7,000 in wages per quarter or $28,000 per year for each employee. For example:

  • A small independent retailer in Milwaukee, Wisconsin with 25 employees has $130,000 in payroll expenses per quarter (all for employees earning less than $10,000 in the quarter), and experiences a 25 percent decline in gross receipts in the first quarter of 2021 compared to the first quarter of 2019. The retailer is eligible for the Employee Retention Credit in the first quarter since it experienced a greater than 20 percent decline in gross receipts. The retailer is also eligible for the ERC in the second quarter because of the decline as compared to 2019 in the immediately preceding first quarter.  The retailer can claim a tax credit of $91,000 in both the first and second quarters (for a total of $182,000).  The amount of the tax credit would be applied against the retailer’s quarterly federal payroll tax amount, and then, assuming that the $91,000 was in excess of the total liability for the quarter, the excess would be advanced (or paid by the government directly to the retailer).  If the retailer experienced declines in gross receipts in the third quarter as compared to 2019, it could claim an additional tax credit (in a similar amount) for the third quarter and the fourth quarter. The small retail business could use this advance – which could amount to tens of thousands of dollars – to rehire workers, raise wages, improve facilities, and purchase new inventory.

While more than 30,000 small businesses have already claimed more than $1 billion in ERCs this year, the Biden-Harris Administration is working to increase awareness of and participation in this beneficial program. Specifically, this week, the Treasury Department will disseminate clear and concise steps on how businesses can determine their eligibility and claim the ERC. These and other efforts will help businesses bring employees back sooner and keep them on the job as the economy recovers.
 
Helping Employers Ramp Back Up
 
As businesses ramp back up without knowing how many workers they will need to operate as the economy recovers, some will look to bring workers on part-time. The UI system offers options for these employers and their returning workers.  Workers shouldn’t have to choose between losing their full UI benefits to take part-time work that represents only a portion of their original salary. The Department of Labor will announce this week how unemployed workers who are rehired part-time don’t have to face that choice.  They can work part-time while still receiving part of their UI benefits so they can work and still make ends meet.

There are two programs that can help and the Department of Labor this week will help highlight them:

  • Short-Time Compensation: Short-time compensation was designed to help prevent layoffs by allowing workers to remain employed at reduced hours and still collect a portion of their UI benefits. But it can also be used to help employers rehire their already laid off workers. If an employer brings a laid-off employee back part-time and participates in the short-time compensation program, that worker will receive pro-rated UI benefits to help cover reduced compensation for not working full time, as well as the $300 weekly supplement until that supplement expires September 6th. 

    The Biden-Harris Administration will highlight this program to help employers rehire their laid-off employees in the coming weeks and work to make it as easy as possible for employers and workers to participate. Short-time compensation programs are currently available in . These benefits are fully federally funded through September 6 for those states.
     
  • Partial UI: Another overlooked option for helping employers ramp up is the partial UI program, which allows workers to return to work at a new employer at reduced hours while still receiving some unemployment benefits. This is a good option for workers who may not qualify for short-time compensation because they are not returning to their previous employer. States can enhance the capacity of partial UI by raising the income threshold where workers can both work and receive some UI benefits, and the Department of Labor will be encouraging states to do so.


CLARIFYING RULES OF THE UI PROGRAM

This week, the Department of Labor will reaffirm longstanding UI requirements to make sure everyone, including states, employers, and workers, understands the rules of the road for UI benefits. These clarifications will also help ease a return to work. Specifically, the Secretary of Labor will issue a letter to states to reaffirm that individuals receiving UI may not continue to receive benefits if they turn down a suitable job due to a general, non-specific concern about COVID-19.  In addition, the President is directing the Secretary of Labor to work with states to reinstate work search requirements for UI recipients, if health and safety conditions allow.

  • Clarifying Rules of UI Programs: The Department of Labor will clarify that, under all UI programs including the Pandemic Unemployment Assistance (PUA) program put in place last year, workers may not turn down a job due to a general, non-specific concern about COVID-19 and continue to receive benefits. Under the PUA program, a worker may receive benefits if the worker certifies weekly that one of the few specific COVID-related reasons specified by Congress is the cause of their unemployment. These reasons include, for example, that the worker has a child at home who cannot go to school because of the pandemic or that the worker is offered a job at a worksite that is out of compliance with federal or state health requirements. Moreover, workers may not misreport a COVID-related reason for unemployment.  The President is directing the Department of Labor to take concrete steps to raise awareness about these and other requirements.
     
  • Directing the Secretary of Labor to Work with States on Work Search Requirements: The President is directing the Secretary of Labor to work with states to reinstate work search requirements for UI recipients, if health and safety conditions allow.  As part of the Families First Coronavirus Response Act signed into law last year by the previous Administration, states receiving certain federal relief funds were required to waive their requirements that workers search for work in order to continue receiving unemployment benefits. While 29 states have already reinstated their work search requirements, the President is directing the Department of Labor to work with the remaining states, as health and safety conditions allow, to put in place appropriate work search requirements as the economy continues to rebound, vaccinations increase, and the pandemic is brought under control.

A core purpose of the UI program is helping workers get back to work. UI keeps workers connected to the labor market during spells of unemployment by providing workers with income that allows them to look for a job match commensurate with their skills or prior wages. UI recipients also gain access to crucial reemployment services to help with job search or retraining where necessary. Ensuring a good job match is good for workers, as well as employers who want the best candidates for their jobs.

Returning to work during a pandemic is more complicated than searching for work in ordinary times. The COVID-19 pandemic remains a genuine challenge for our country, with infections, hospitalizations, and deaths down substantially when compared with last year, but still at unacceptably high levels. While vaccinations are on the rise with over half of American adults having received at least one shot, around a quarter of those aged 18 to 29 and around a third of those aged 30 to 39 are fully vaccinated. There is a great deal more to do.

At the same time, our economy is growing again at an annual rate of more than 6% and more than 1.5 million jobs have been created over the last three months. Many more workers would like to return to work if they can overcome the barriers that stand in the way. We can and will continue to ensure workers and their families are protected from COVID-19, while also helping those who are able and available to search for good jobs in safe and healthy workplaces.

‘Key to Getting Funds Into Hands of Providers’

Katie Hamm, acting deputy assistant secretary for Early Childhood Development at HHS’ Administration for Children and Families, stated,  “Today, the Administration for Children and Families (ACF) released guidance to support states, territories, and tribes in distributing $24 billion in relief funds for child care providers. The guidance explains specific requirements related to the child care stabilization funds and identifies opportunities for states, territories, and tribes to leverage these resources to support a wide range of child care providers.

“The guidance is key to getting funds into the hands of providers that employ essential workers and help make child care accessible to working families. These funds essentially help stabilize the industry and spur economic growth in communities hit hardest by the pandemic. Most of these funds will go to providers and can be used for a variety of operating expenses, including wages and benefits, rent and utilities, personal protective equipment and sanitization and cleaning.

“This guidance lays out a roadmap for stabilizing the child care sector.  The document is meant to support and guide child care agencies in awarding grants to child care centers and family child care providers, which are vital to our nation’s economic recovery.”

White House Releases State-by-State Fact Sheets to Highlight Need and Benefit of American Families Plan in Each State

The White House released fact sheets that highlight the need for and impact of the investments proposed by President Biden in the American Families Plan in states and territories across the country. The lack of affordable, accessible, quality day care has kept millions of women from returning to the workforce, while the availability of two extra years of public school contributes to higher graduation rates and 20 percent higher annual incomes over a lifetime © Karen Rubin/news-photos-features.com

The White House released fact sheets that highlight the need for and impact of the investments proposed by President Biden in the American Families Plan in states and territories across the country. The American Families Plan is a once-in-a-generation investment in the foundations of middle-class prosperity: education, health care, and child care.
 
The fact sheets highlight how many families would benefit from free community college and universal pre-K, the high costs of child care, the number of workers who lack access to paid family leave, and the thousands of dollars families and workers would save in tax cuts and credits.

Individual fact sheets for each of the 50 states, the District of Columbia, Puerto Rico, and other territories are linked below.

These fact sheets are the latest in a series from the White House highlighting the benefits of the American Families Plan for communities, in addition to a series of fact sheets on the American Jobs Plan. Fact sheets on how the American Families Plan advances racial equity and supports rural America have been released in recent weeks.

Fact Sheets by State/Territory:
Alaska
Alabama
American Samoa
Arkansas
Arizona
California
Colorado
Connecticut
District of Columbia
Delaware
Florida
Georgia
Guam
Hawaii
Iowa
Idaho
Illinois
Indiana
Kansas
Kentucky
Louisiana
Massachusetts
Maryland
Maine
Michigan
Minnesota
Missouri
Mississippi
Montana
North Carolina
North Dakota
Northern Marina Islands
Nebraska
New Hampshire
New Jersey
New Mexico
Nevada
New York
Ohio
Oklahoma
Oregon
Pennsylvania
Puerto Rico
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Virgin Islands
Washington
Wisconsin
West Virginia
Wyoming
 
Fact Sheets by Issue:
 
Racial Equity
Rural Communities

White House: How American Families Plan Will Support Children, Teachers, and Working Families in Rural America

President Biden knows a strong middle-class is the backbone of America and that rural and tribal communities are essential to the economic growth of our country. Rural communities require targeted investments that meet the needs of their children and families, along with workforce development for those providing childcare and education. The American Families Plan represents a generation-defining investment in rural America, and a commitment to grow the middle-class and expand the benefits of economic growth to all Americans. By extending and building upon the provisions of the American Rescue Plan, the American Families Plan would cut the rural poverty rate by more than 21 percent and the rural child poverty rate by 50 percent, relative to the projected poverty rate for 2022 © Karen Rubin/news-photos-features.com

The White House issued a fact sheet explaining how President Joe Biden’s American Families Plan will support children, teachers and working families in rural America:

President Biden knows a strong middle-class is the backbone of America and that rural and tribal communities are essential to the economic growth of our country. Rural communities require targeted investments that meet the needs of their children and families, along with workforce development for those providing childcare and education. The American Families Plan represents a generation-defining investment in rural America, and a commitment to grow the middle-class and expand the benefits of economic growth to all Americans. All told, by extending and building upon the provisions of the American Rescue Plan, the American Families Plan would cut the rural poverty rate by more than 21 percent and the rural child poverty rate by 50 percent, relative to the projected poverty rate for 2022.
 
UNIVERSAL PRE-SCHOOL FOR 3- AND 4-YEAR OLDS
 
Low population density, physical isolation, and broad spatial distribution make access to preschool more challenging for low-income families in rural areas. President Biden’s American Families Plan will:

  • Provide free universal pre-school to all 3- and 4-year-olds, benefitting 5 million children. This historic investment in America’s future will first prioritize high-need areas and enable communities and families to choose the settings that work best for them, whether that’s a preschool classroom in a public school, a center, or a Head Start program. The President’s plan will invest in tuition-free community college and teacher scholarships to support those who wish to earn a bachelor’s degree or other credential that supports their work as an educator or their work to become an early childhood educator. And educators will receive job-embedded coaching, professional development, and wages that reflect the importance of their work. All employees in participating Pre-K programs and Head Start will earn at least $15 per hour, and those with comparable qualifications will receive compensation and benefits similar to elementary school teachers.

FREE COMMUNITY COLLEGE AND OTHER POSTSECONDARY INVESTMENTS
 
There are approximately 250 rural community colleges across the U.S., with an even greater number of community colleges that serve a primarily rural student population. Colleges and universities are important anchor institutions in rural communities, providing jobs to residents, attracting businesses, and boosting local economies.
 
President Biden’s American Families Plan will:

  • Provide two years of free community college so that first-time students and workers wanting to reskill can enroll in a community college without paying tuition and fees.
  • Increase the maximum Pell Grant award by approximately $1,400 to provide additional assistance to low-income students and also allow DREAMers to access the grant.
  • Provide grants to increase college retention and completion, allowing states, territories, and Tribes to support the adoption and expansion of evidence-based practices and promising solutions that help students complete their degrees.
  • Increase funding to support 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), and the students they serve. This will provide two years of subsidized tuition, as well as funding to support institutional development and the strengthening of the health care workforce, which will benefit rural areas where the need for physicians, nurses, and other providers continues to limit access to care.

Education and Preparation for Teachers
 
More than 9 million students—nearly one in five students—attend a rural school in the U.S. But these schools face challenges in hiring and retaining teachers, particularly in special education and specialized instruction.
 
President Biden’s American Families Plan will:

  • Address teacher shortages, improve teacher preparation, and strengthen pipelines for teachers of color. President Biden is calling on Congress to double scholarships for future teachers from $4,000 to $8,000 per year while earning their degree and expand it to early childhood educators. The President’s plan would also invest $3.2 billion to cultivate and recruit teachers from the communities that schools serve, provide year-long, paid residency programs, and invest in teacher preparation at HBCUs, TCUs, and MSIs.
  • Support the development of special education teachers. There has been a 17 percent  decline in the number of special educators over the last decade. Additionally, while only about half of the students receiving special education services are white, approximately 82 percent of special education teachers are white. The American Families Plan will invest $900 million in personnel preparation funds under the Individuals with Disabilities Education Act (IDEA), funding pathways to additional certifications and strengthening existing teacher preparation programs for special educators.
  • Help current teachers earn in-demand credentials. President Biden is calling on Congress to create a new fund to provide educators with opportunities to obtain additional certifications in high-demand areas like special education, bilingual education, and certifications that improve teacher performance. This fund will support over 100,000 educators, with priority for public school teachers with at least two years of experience at schools with a significant number of low-income students or significant teacher shortages.
  • Invest in educator leadership. President Biden is calling on Congress to invest $2 billion in programs that leverage teachers as leaders to multiply their impact within their school, such as high-quality mentoring programs that leverage current teachers as mentors for new teachers, which improve student outcomes and increase teacher retention rates while keeping great teachers in the classroom.

Child Care
 
Lack of access to affordable, high-quality child care is making it hard for parents to work and provide for their families. Many rural families have to go without care, and without sufficient demand, it can be challenging for centers to afford to operate. Over half of rural families live in a child care desert, meaning there are few or no child care options. In particular, rural families disproportionately lack access to child care centers serving infants and toddlers.  
 
The American Families Plan builds on investments in President Biden’s American Jobs Plan and will further expand access to high-quality child care in rural areas.
 
President Biden’s American Families Plan will:

  • Make child care more affordable. Families will pay only a portion of their income on child care based on a sliding scale. For the most-hard pressed working families, child care costs for their young children would be fully covered and families earning up to 1.5 times their state median income will spend no more than 7% of their income on child care for young children.
  • Ensure this child care is high quality. The American Families plan will ensure child care providers, including centers and home-based providers, receive funding to provide the true cost of quality early childhood education—including a developmentally appropriate curriculum, small class sizes, and culturally and linguistically responsive environments that are inclusive of children with disabilities.
  • Invest in the care workforce across rural America. Early childhood educators are among the most underpaid workers in the country and nearly half rely on public income support programs. The typical child care worker earned $12.24 per hour in 2020—while receiving few, if any, benefits, leading to high turnover and lower quality of care.  The American Families Plan will ensure a $15 minimum wage for early childhood educators. Those with comparable qualifications to elementary school teachers will receive comparable compensation and benefits. And, the American Families Plan will ensure educators receive job-embedded coaching and professional development, along with additional training opportunities.

Paid Leave
 
Paid family and medical leave supports workers and families and is a critical investment in the strength and equity of our economy. However, many rural workers lack access to paid family and medical leave programs, particularly low-wage workers. According to one nation-wide survey, over fifty percent of non-metro (including rural) workers said they would very likely face hardship if they had to take a few months of unpaid time off work, compared to 40 percent of metro area workers. Furthermore, many small rural businesses struggle to compete for and retain talent compared to urban areas. These businesses often cannot afford to provide workplace supports like paid family and medical leave. Rural areas are also more likely to have older populations, increasing the need for both medical and caregiving leave. One study found that California’s paid leave program accounted for an 11-percent relative decline in elderly nursing home usage, saving costs for both the state and families.
 
President Biden’s American Families Plan will:

  • Create a national comprehensive paid family and medical leave program. The program will ensure workers receive partial wage replacement to take time to bond with a new child, care for a seriously ill loved one, deal with a loved one’s military deployment, find safety from sexual assault, stalking, or domestic violence, heal from their own serious illness, or take time to deal with the death of a loved one. It will guarantee twelve weeks of paid parental, family, and personal illness/safe leave by year 10 of the program, and also ensure workers get three days of bereavement leave per year starting in year one. The program will provide workers up to $4,000 a month, with a minimum of two-thirds of average weekly wages replaced, rising to 80 percent for the lowest wage workers. We estimate this program will cost $225 billion over a decade.


Nutrition
 
With higher child poverty rates and longer distances to grocery stores, accessing nutritious food can be challenging for families in rural areas. Eighty-six percent of counties with high child food insecurity are rural, and children in rural areas are 25 percent more likely to be obese than those in urban areas. To foster positive long-term health outcomes through nutrition security, President Biden’s American Families Plan will:

  • Expand summer EBT to all eligible children nationwide. The Summer EBT Demonstrations help low-income families with children eligible for free- and reduced-price meals during the school year purchase food during the summer. The American Families Plan builds on the American Rescue Plan’s support for Summer Pandemic-EBT by making the successful program permanent and available to all 29 million children receiving free- and reduced-price meals. Research shows that this program decreases food insecurity among children and leads to positive changes in nutritional outcomes.
  • Expand school meal programs. Currently, just 70 percent of eligible schools have adopted Community Eligibility Provision (CEP), which allows high-poverty schools to provide meals free of charge to all of their students—breaking down barriers for students who may be eligible for school meals but may not apply for them due to stigma or not fully understanding the application process. The President’s plan will allow more schools in high poverty districts to offer meals free of charge to all of their students by reimbursing a higher percentage of meals at the free reimbursement rate through CEP. Additionally, the plan will target elementary schools by lowering the threshold for CEP eligibility for elementary schools. The plan will also expand direct certification to automatically enroll more students for school meals based on Medicaid and Supplemental Security Income data. This will especially help rural schools, which often have limited administrative capacity for food purchasing and accounting.
  • Launch a healthy foods incentive demonstration to further improve the nutrition standards of school meals and support the development of healthy lifestyles throughout the school environment.

 
Tax Cuts for America’s Families and Workers
 
While the American Rescue Plan provided meaningful relief to hundreds of millions of Americans, that was just a first step. Now is the time to build back better, to help families and workers who for too long have felt the squeeze of stagnating wages and an ever-increasing cost-of-living.  Direct assistance to families in the form of tax credits paid on a regular basis lifts children and families out of poverty, makes it easier for families to make ends meet, and boosts the academic and economic performance of children over time. President Biden’s American Families Plan will:

  • Extend expanded ACA premiums tax credits in the American Rescue Plan. Health care should be a right, not a privilege, and Americans facing illness should never have to worry about how they are going to pay for their treatment. No one should face a choice between buying life-saving medications or putting food on the table. President Biden has a plan to build on the Affordable Care Act and lower prescription drug costs for everyone by letting Medicare negotiate prices, reducing health insurance premiums and deductibles for those who buy coverage on their own, creating a public option and the option for people to enroll in Medicare at age 60, and closing the Medicaid coverage gap to help millions of Americans gain health insurance. The American Families Plan will build on the American Rescue Plan and continue our work to make health care more affordable.  The biggest improvement in health care affordability since the Affordable Care Act, the American Rescue Plan provided two years of lower health insurance premiums for those who buy coverage on their own. With those changes, more than three in four uninsured people living in rural areas are now eligible for low-cost health care, and more than four in five current HealthCare.gov enrollees in rural counties are eligible for low-cost health care. The American Families Plan will make a $200 billion investment to make those premium reductions permanent. As a result, nine million people will save hundreds of dollars per year on their premiums, and four million uninsured people will gain coverage.  The Families Plan will also invest in maternal health and support the families of veterans receiving health care services.
  • Extend the Child Tax Credit (CTC) increases in the American Rescue Plan through 2025 and make the CTC permanently fully refundable. Rural child poverty rates are higher than the national average, and more than 200 rural counties qualify as “persistent-poverty counties,” meaning they have experienced poverty rates of 20 percent or higher for at least 30 years.  The President is calling for extending the Child Tax Credit expansion first enacted in the American Rescue Plan, which increases the Child Tax Credit from $2,000 per child to $3,000 per child for 6-year-olds and above and $3,600 per child for children under 6. It also makes 17-year-olds eligible for the first time and makes the credit fully refundable, meaning that the nearly half of low-income rural families that historically did not qualify for the full credit because they earned too little, can now receive the same credit as middle-income families. If extended, this would be the single largest contributor to this plan’s historic impact of lifting a projected 620,000 children in non-metro areas out of poverty in 2022 and cutting rural child poverty in half.
  • Permanently increase tax credits to support families with child care needs. To help even more families, President Biden is calling on Congress to make permanent the temporary expansion of the Child and Dependent Care Tax Credit (CDCTC) enacted in the American Rescue Plan. Families will get back as a tax credit as much as half of their spending on child care for children under age 13, so that they can receive a total of up to $4,000 for one child or $8,000 for two or more children. Making the American Rescue Plan expansion of CDCTC permanent will also ensure the credit will continue to be fully refundable, making it more equitable by allowing low-income working families to receive the full value of the credit towards their eligible child care expenses regardless of how much they owe in taxes.
  • Make the Earned Income Tax Credit (EITC) expansion for childless workers permanent. President Biden believes our tax code should reward work and not wealth. And that means rewarding people who work hard every day at modest wages to provide their communities with essential services. Before this year, the federal tax code taxed low-wage childless workers into poverty or deeper into poverty — the only group of workers treated this way. The American Rescue Plan addressed this problem by roughly tripling the EITC for childless workers, benefitting 17 million low-wage workers, many of whom are essential workers including cashiers, cooks, delivery drivers, food preparation workers, and childcare providers. For example, a childless worker who works 30 hours per week at $9 per hour earns income that, after taxes, leaves them below the federal poverty line. By increasing her credit to more than $1,100, EITC expansion helps pull such workers out of poverty. The President is calling on Congress to make this expansion permanent. All told, the expansion will directly benefit more than one in five rural workers without children.


To view this fact sheet in your browser, click here
 

White House: American Families Plan Advances Equity and Racial Justice

President Joe Biden’s American Families Plan will support children, teachers and working families and advance equity and racial justice © Karen Rubin/news-photos-features.com

The White House issued a fact sheet explaining how President Joe Biden’s American Families Plan will support children, teachers and working families and advances equity and racial justice:

On his first day in office, President Biden signed an Executive Order directing the whole of the federal government to advance equity and racial justice. Today, the President announced a historic new set of investments to deliver on his vision of a more equitable America through the American Families Plan. The American Families Plan will help restore the promise of America for communities who have been left behind and locked out of opportunity—investing in teachers and students, empowering workers and their families, and reimagining a tax code that rewards work over wealth. By extending and building upon the provisions of the American Rescue Plan, the American Families Plan would lift more than 10 million people out of poverty in 2022. This means a 29 percent reduction in Black poverty, a 31 percent reduction in Latino poverty, and a 15 percent reduction in Asian American, Native Hawaiian, and Pacific Islander poverty, relative to the projected poverty rate for 2022. Among children, it would reduce poverty by more than 47 percent.
 
President Biden’s American Families Plan will deliver a fairer and more equitable America by:

  • Closing opportunity gaps for low-income children and children of color by providing universal access to preschool, and making quality, affordable child care more accessible across the nation.
  • Investing in educational opportunity for underserved communities by providing two years of free community college for Americans, including DREAMers; making 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) more affordable; increasing the value of Pell Grants to help more low-income students attend college; and ensuring more students are supported through completion.
  • Empowering teachers by investing in the training and support they need and ensuring more teachers of color can reach the classroom.
  • Creating a right to paid family and medical leave to ensure working parents and caregivers, including workers of color and low-wage workers, can equitably access the time off they need to support their families.
  • Closing gaps in our social safety net to ensure that kids have the nutritious food they need to be healthy and succeed in school.
  • Extending the American Rescue Plan’s historic expansions of the Child Tax Credit, the Earned Income Tax Credit, and the Child and Dependent Care Tax Credit to provide income support and cut poverty among families and workers.

Together, these investments will give millions of children across the country a fair shot at the American dream.

UNIVERSAL PRE-SCHOOL FOR ALL 3- AND 4-YEAR-OLDS
 
Preschool is critical to ensuring that children start kindergarten with the skills and supports that set them up for success in school. In fact, research shows that kids who attend universal Pre-K are more likely to take honors classes and less likely to repeat a grade, and another study finds low-income children who attend universal programs do better in math and reading as late as eighth grade. Unfortunately, most children, and especially children of color and low-income children, do not have access to the full range of high-quality pre-school programs available to their peers. In addition, children with disabilities benefit from inclusive, accessible pre-school programs with their peers, and all children benefit when we create socio-economically diverse Pre-K classrooms where all students thrive. 
 
President Biden’s American Families Plan will:

  • Close opportunity gaps by providing universal pre-school to all 3- and 4-year-olds. President Biden is calling for a national partnership with states to offer free, high-quality, accessible, and inclusive preschool to all 3-and 4-year-olds—benefitting 5 million children. This historic investment in America’s future will first prioritize high-need areas and enable communities and families to choose the setting that works best for them, whether that’s a preschool classroom in a public school, a center, or a Head Start program. The President’s plan will also ensure that all publicly-funded preschool is high-quality with low student-to-teacher ratios, a high-quality and developmentally appropriate curriculum, and supportive classroom environments that are inclusive for all students. The President’s plan will leverage investments in tuition-free community college and teacher scholarships to support those who wish to earn a bachelor’s degree or other credential that supports their work as an educator or their work to become an early childhood educator. And, educators will receive job-embedded coaching, professional development, and wages that reflect the importance of their work. All employees in participating Pre-K programs and Head Start will earn at least $15 per hour, and those with comparable qualifications will receive compensation commensurate with that of kindergarten teachers. These investments will give American children a head start and pave the way for the best-educated generation in U.S. history

 
FREE COMMUNITY COLLEGE AND OTHER POSTSECONDARY INVESTMENTS
 
For much of the 20th century, graduating from high school was a gateway to a stable job and a living wage. But over the last 40 years, we have seen the most growth in jobs requiring higher levels of job preparation, including education and training. Today, 70 percent of jobs are held by people with more than a high school degree. American workers, and especially workers of color, need support to build their skills, increase their earnings, remain competitive, and share in the benefits of the new economy. President Biden’s American Families Plan will:

  • Offer two years of free community college to all Americans, including DREAMers. Community colleges provide educational opportunities for students who are often underserved by four-year universities, including first-generation students, students of color, low-income students, and adult learners. President Biden’s proposal creates a federal-state, -territory, and -tribal partnership that allows first-time college students and workers wanting to reskill to enroll in a community college to earn a degree or credential for free. Students can use the benefit for up to three years and, if circumstances warrant, up to four years, recognizing that many students’ lives and other responsibilities can make full-time enrollment difficult. If all states, territories, and tribes participate, about 5.5 million students would pay $0 in tuition and fees.
  • Provide up to approximately $1,400 in additional assistance to low-income students by increasing the Pell Grant award. Nearly 60 percent of Black, almost half of Latino, half of American Indian or Alaska Native, and more than one-third of Native Hawaiian or Pacific Islander students depend on Pell Grants to help pay for college. But the grant has not kept up with the rising cost of postsecondary education; over the last 50 years, the maximum Pell Grant value has plummeted from nearly 80 percent of the cost of a four-year college degree to just 30 percent — leading millions of low-income students to take out debt to finance their education. The American Families Plan would increase the maximum Pell Grant award by approximately $1,400 and allow DREAMers to access the funding.
  • Increase college retention and completion rates. Just 40 percent and 54 percent of first-time Black and Latino students at four-year colleges and universities, respectively, go on to earn their degree, compared to 64 percent of white students. And overall, just 40 percent of community college students, who are disproportionately low-income and people of color, graduate within 6 years. The President is proposing a $62 billion formula grant program that will provide funding to states, territories, and Tribes to support retention and completion activities at colleges and universities that serve high numbers of low-income students, including wraparound services ranging from child care and mental health services to faculty and peer mentoring; emergency basic needs grants; practices that recruit and retain faculty; transfer agreements between colleges; and evidence-based remediation programs.
  • Provide two years of subsidized tuition and expand programs in high-demand fields at HBCUs, TCUs, and MSIs. Research has found that HBCUs, TCUs, and MSIs are vital to helping underrepresented students move to the top of the income ladder. But despite their record of success, these institutions have significantly fewer resources than other top colleges and universities, undermining their ability to grow and support more students. The President is calling for $39 billion to provide tuition subsidies to low- and middle-income students attending HBCUs, TCUs, and MSIs. The President is also calling for $5 billion to expand existing institutional aid grants to HBCUs, TCUs, and MSIs, which can be used by these institutions to strengthen their academic, administrative, and fiscal capabilities, including by creating or expanding educational programs in high-demand fields (e.g., STEM, computer sciences, nursing, and allied health), with an additional $2 billion funding directed towards building a pipeline of skilled health care workers with graduate degrees. These proposed investments, combined with the $45 billion proposed in the American Jobs Plan targeted to these institutions, will enable America’s HBCUs, TCUs, and MSIs to help advance underrepresented students and make the U.S. more competitive on the global stage.

 
EDUCATION AND PREPARATION FOR TEACHERS
 
Few people have a bigger impact on a child’s life than a great teacher. Unfortunately, the U.S. faces a large and growing teacher shortage. Before the pandemic, schools across the nation needed an estimated additional 100,000 certified teachers, resulting in key positions going unfilled, granting of emergency certifications, or teachers teaching out of their certification area. Shortages of certified teachers disproportionately impact schools with higher percentages of students of color, which  have a higher proportion of teachers that are uncertified and higher shares of inexperienced teachers, exacerbating educational disparities. President Biden is calling for investments to improve the impact of new teachers entering the profession, increase retention rates, and increase the number of teachers of color, all of which will improve student outcomes.
 
President Biden’s American Families Plan will:

  • Address teacher shortages, improve teacher preparation, and strengthen pipelines for underrepresented teachers, including teachers of color. Our country faces a serious teacher shortage problem, which disproportionately impacts students of color. The percentage of teachers in their first or second year of teaching in schools with the highest percentage of students of color is 7 percentage points higher than schools with the lowest percentage of students of color (17 percent vs. 10 percent). The percentage of teachers who are uncertified is more than three times as large (4.8 percent  vs. 1.3 percent). At the same time, while teachers of color can have a particularly strong impact on students of color, around one in five teachers are people of color, compared to more than half of K-12 public school students. These disparities help drive gaps in student outcomes. Strengthening the teacher pipeline and improving teacher preparation, supporting teachers so they stay in the classroom, and investing in the recruitment and preparation of underrepresented teachers will help narrow persistent educational disparities.   President Biden is calling on Congress to invest in America’s teachers, including by doubling scholarships for future teachers from $4,000 to $8,000 per year, which would help underrepresented teachers, including teachers of color, access high-quality teacher preparation programs that best prepare them for the work ahead. The plan also will invest $2.8 billion in Grow Your Own programs and year-long, paid teacher residency programs, which have a greater impact on student outcomes, teacher retention, and are more likely to enroll underrepresented teacher candidates, including candidates of color; and invest $400 million in teacher preparation programs at HBCUs, TCUs, and MSIs.
  • Support the development of special education teachers. There has been a 17 percent  decline in the number of special educators over the last decade. Additionally, while only about half of the students receiving special education services are white, approximately 82 percent of special education teachers are white. The American Families Plan will invest $900 million in personnel preparation funds under the Individuals with Disabilities Education Act (IDEA), funding pathways to additional certifications, and strengthening existing teacher preparation programs for special educators.
  • Help current teachers earn in-demand credentials. Many teachers are eager to answer the call to get certified in areas their schools need, like bilingual education, but are deterred due to the high cost of getting an additional certification. President Biden is calling on Congress to create a new fund to provide more than 100,000 educators with the opportunity to obtain additional certifications in high-demand areas like special education, bilingual education, and certifications that improve teacher performance. This will particularly benefit students with disabilities and English learners.
  • Invest in educator leadership. Millions of teachers – and the students they educate – would stand to benefit from greater mentorship and leadership opportunities. President Biden is calling on Congress to invest $2 billion to support programs that leverage teachers as leaders, such as high-quality mentorship programs for new teachers and underrepresented teachers, including teachers of color.

 
CHILD CARE
 
High-quality early care and education helps ensure that children can take full advantage of education and training opportunities later in life, especially for children from low-income families, who face learning disparities before they even can go to preschool. One study by Nobel Laureate James Heckman found that every dollar invested in a high-quality, comprehensive birth to five program for the most economically disadvantaged children resulted in $7.30 in benefits as children grew up healthier, were more likely to graduate high school and college, and earned more as adults. But we have grave disparities when it comes to child care in our country. One analysis finds that more than half of Latino and Native American families live in child care deserts. Difficulty finding high-quality, affordable child care leads some parents, especially mothers, to drop out of the labor force entirely, some to reduce their work hours, and others to turn down a promotion – leading to lifetime consequences in terms of earnings, savings, and retirement. Lack of affordable child care can be especially challenging for the families of the nearly 7 in 10 Black women who are their families’ primary or sole breadwinners.
 
President Biden’s American Families Plan will:

  • Ensure low- and middle-income families can access affordable child care for children under the age of five. Under the President’s plan, families will pay only a portion of their income based on a sliding scale. For the most hard-pressed working families, child care costs for their young children would be fully covered and families earning 1.5 times their state median income will spend no more than 7 percent of their income on child care for their young children. The plan will also provide families with a range of inclusive and accessible options to choose from for their child, from child care centers to family child care providers to Early Head Start programs.
  • Invest in high-quality care. The last time the U.S. prioritized major, long-term investments in child care was when President Roosevelt signed the Lanham Act to provide free, high-quality child care in an effort to support women going to work during World War II. Not only did it enable women to work, but children who participated experienced long-lasting economic benefits, proving most beneficial for the most disadvantaged children.  Under the President’s plan, child care providers will receive funding to support the true cost of quality early childhood education–including a developmentally appropriate curriculum, small class sizes, and culturally and linguistically responsive environments that are accessible and inclusive of children with disabilities. These investments support positive interactions between educators and children that promote children’s social-emotional and cognitive development.
  • Invest in the care workforce, including the women of color who make up a substantial percentage of the field. More investment is needed to support early childhood providers and educators, more than nine in ten of whom are women and more than four and ten of whom are women of color. They are among the most underpaid workers in the country. The typical child care worker earned $12.24 per hour in 2020, and one report found nearly half rely on public income support programs. The American Families Plan includes a $15 minimum wage for early childhood educators and ensures that those with similar qualifications as kindergarten teachers receive comparable compensation and benefits.

When fully implemented, the President’s plan will provide 3 million children from low- and middle-income families with high quality care, saving the average family $14,800 a year on child care expenses.
 
PAID LEAVE
 
Paid family and medical leave supports workers and families and is a critical investment in the strength and equity of our economy. Paid leave has been found to reduce racial disparities in wage loss between workers of color and white workers, improve child health and well-being, support employers by improving employee retention and reducing turnover costs, and increase women’s labor force participation. However, currently, 95 percent of the lowest wage workers, mostly women and workers of color, lack access to any paid family leave. Sixty-two percent of Black adults and 73 percent of Latino adults are either ineligible for or cannot afford to take unpaid leave, compared to 60 percent of white adults. Additionally, Black and Latina mothers are more likely than white women to report being let go by an employer or quitting their jobs after giving birth in order to have some leave. 
 
President Biden’s American Families Plan will:

  • Create a national comprehensive paid family and medical leave program. Paid family and medical leave can help reduce racial disparities in wage loss between workers of color and white workers. People with disabilities may also have less access to paid leave due to higher rates of part time and low wage employment. The program will ensure workers receive partial wage replacement to take time to bond with a new child, care for a seriously ill loved one, deal with a loved one’s military deployment, find safety from sexual assault, stalking, or domestic violence, heal from their own serious illness, or take time to deal with the death of a loved one. It will guarantee twelve weeks of paid parental, family, and personal illness/safe leave by year 10 of the program, and also ensure workers get three days of bereavement leave per year starting in year one. The program will provide workers up to $4,000 a month, with a minimum of two-thirds of average weekly wages replaced, rising to 80 percent for the lowest wage workers. The plan has an inclusive definition of family, ensuring workers can care for and be cared by a loved one who is not related by blood, which will greatly impact LGBTQ individuals and people with disabilities. We estimate this program will cost $225 billion over a decade.

NUTRITION
 
The pandemic has added urgency to the moral travesty of nutrition insecurity among children, which disproportionately affects low-income families and children of color. No one should have to worry about whether they can provide nutritious food for themselves or their children. A poor diet jeopardizes a child’s ability to learn and succeed in school. Nutrition insecurity can also have long-lasting negative impact on overall health and put children at higher risk for diseases such as diabetes, heart disease, and high blood pressure.
 
President Biden’s American Families Plan will:

  • Expand summer EBT to all eligible children nationwide. The Summer EBT Demonstrations help low-income families with children eligible for free- and reduced-price meals during the school year purchase food during the summer. The American Families Plan builds on the American Rescue Plan’s support for Summer Pandemic-EBT by making the successful program permanent and available to all 29 million children receiving free- and reduced-price meals. Research shows that this program decreases food insecurity among children and led to positive changes in nutritional outcomes.
  • Expand school meal programs. Currently, just 70 percent of eligible schools have adopted Community Eligibility Provision (CEP), which allows high-poverty schools to provide meals free of charge to all of their students—breaking down barriers for students who may be eligible for school meals but may not apply for them due to stigma or not fully understanding the application process. The President’s plan will allow more schools in high poverty districts to offer meals free of charge to all of their students by reimbursing a higher percentage of meals at the free reimbursement rate through CEP. Additionally, the plan will target elementary schools by reimbursing an even higher percentage of meals at the free reimbursement through CEP and lowering the threshold for CEP eligibility for elementary schools. The plan will also expand direct certification to automatically enroll more students for school meals based on Medicaid and Supplemental Security Income data.
  • Facilitate re-entry for formerly incarcerated individuals through SNAP eligibility. Individuals convicted of a drug-related felony are currently ineligible to receive SNAP benefits unless a state has taken the option to eliminate or modify this restriction. Denying these individuals—many of whom are parents of young children—SNAP benefits jeopardizes nutrition security and poses a barrier to re-entry into the community in a population that already faces significant hurdles to obtaining employment and stability. SNAP is a critical safety net for many individuals as they search for employment to support themselves and their families. This restriction disproportionately impacts African Americans, who are convicted of drug offenses at much higher rates than white Americans. 

TAX CUTS FOR AMERICAN FAMILIES AND WORKERS
 
While the American Rescue Plan provided meaningful relief for hundreds of millions of Americans, that is just a first step. Now is the time to build back better, to help families and workers who for too long have felt the squeeze of stagnating wages and an ever-increasing cost-of-living.  Direct assistance to families in the form of tax credits paid on a regular basis lifts children and families out of poverty, makes it easier for families to make ends meet, and boosts the academic and economic performance of children over time.
 
President Biden’s American Families Plan will:

  • Extend expanded ACA premiums tax credits in the American Rescue Plan. Health care should be a right, not a privilege, and Americans facing illness should never have to worry about how they are going to pay for their treatment. No one should face a choice between buying life-saving medications or putting food on the table.  President Biden has a plan to build on the Affordable Care Act and lower prescription drug costs for everyone by letting Medicare negotiate prices, reducing health insurance premiums and deductibles for those who buy coverage on their own, creating a public option and the option for people to enroll in Medicare at age 60, and closing the Medicaid coverage gap to help millions of Americans gain health insurance. The American Families Plan will build on the American Rescue Plan and continue our work to make health care more affordable.  The biggest improvement in health care affordability since the Affordable Care Act, the American Rescue Plan provided two years of lower health insurance premiums for those who buy coverage on their own. With these changes, about three in four uninsured Black adults and nearly four in five uninsured Hispanic or Latino adults are now eligible for low-cost health care. The American Families Plan will make those premium reductions permanent, a $200 billion investment.  As a result, nine million people will save hundreds of dollars per year on their premiums, and four million uninsured people will gain coverage.  The Families Plan will also invest in maternal health and support the families of veterans receiving health care services.
  • Extend the Child Tax Credit (CTC) increases in the American Rescue Plan through 2025 and make the CTC permanently fully refundable. The President is calling for the Child Tax Credit expansion, first enacted in the American Rescue Plan, to be extended.  This legislation expands the Child Tax Credit from $2,000 per child to $3,000 per child six-years old and above, and $3,600 per child for children under six. It also makes 17-year-olds eligible for the first time and makes the credit fully refundable on a permanent basis, so that low-income families—the families that need the credit the most—can benefit from the full tax credit. The expanded Child Tax Credit in the American Rescue Plan will benefit nearly 66 million children, and is the single largest contributor to the plan’s historic reductions in child poverty, including by 52 percent for Black children, 45 percent for Latino children, 37 percent for Asian American, Native Hawaiian, and Pacific Islander children, and 61 percent for Native American children.
  • Permanently increase tax credits to support families with child care needs. To help even more low- and middle-income families, President Biden is calling on Congress to make permanent the temporary Child and Dependent Care Tax Credit (CDCTC) expansion enacted in the American Rescue Plan. Families will get back as a tax credit as much as half of their spending on child care for children under age 13, so that they can receive a total of up to $4,000 for one child or $8,000 for two or more children. The CDCTC will be fully refundable, making the credit more equitable by allowing low-income working families to receive the full value of the credit towards their eligible child care expenses regardless of how much they owe in taxes. This is a dramatic expansion of support to low- and middle-income families. In 2019, a family claiming a CDCTC for the previous year got less than $600 on average towards the cost of care, and many low-income families got nothing.
  • Make the Earned Income Tax Credit expansion for childless workers permanent. President Biden believes our tax code should reward work and not wealth. And that means rewarding workers who work hard every day at modest wages to provide their communities with essential services. Before this year, the federal tax code taxed low-wage childless workers into poverty or deeper into poverty — the only group of workers it treated this way. The American Rescue Plan addressed this problem by roughly tripling the EITC for childless workers, benefitting 17 million low-wage workers, many of whom are essential workers including cashiers, cooks, delivery drivers, food preparation workers, and childcare providers. For example, a childless worker who works 30 hours per week at $9 per hour earns income that, after taxes, leaves them below the federal poverty line. By increasing her EITC to more than $1,100, this EITC expansion helps pull such workers out of poverty. The President is calling on Congress to make this expansion permanent. Extending these changes will give a critical boost in earnings of an estimated 2.8 billion Black, 2.8 million Latino, and 678,000 Asian American workers.


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