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.
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.
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 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.
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.
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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.
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 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 comprehensivepaid 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.
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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Here is a highlighted transcript of President Joe Biden’s speech to a joint session of Congress, April 28, 2021:
9:06 P.M. EDT
THE PRESIDENT: Thank you. (Applause.) Thank you. Thank you. Good to be back. And Mitch and Chuck will understand it’s good to be almost home, down the hall. Anyway, thank you all.
Madam Speaker, Madam Vice President — (applause) — no President has ever said those words from this podium. No President has ever said those words, and it’s about time. (Applause.)
First Lady — (applause) — I’m her husband; Second Gentleman; Chief Justice; members of the United States Congress and the Cabinet; distinguished guests; my fellow Americans: While the setting tonight is familiar, this gathering is just a little bit different — a reminder of the extraordinary times we’re in.
Throughout our history, Presidents have come to this chamber to speak to Congress, to the nation, and to the world to declare war, to celebrate peace, to announce new plans and possibilities.
Tonight, I come to talk about crisis and opportunity, about rebuilding the nation, revitalizing our democracy, and winning the future for America.
I stand here tonight, one day shy of the 100th day of my administration — 100 days since I took the oath of office and lifted my hand off our family Bible and inherited a nation — we all did — that was in crisis.
The worst pandemic in a century. The worst economic crisis since the Great Depression. The worst attack on our democracy since the Civil War.
Now, after just 100 days, I can report to the nation: America is on the move again — (applause) — turning peril into possibility, crisis to opportunity, setbacks into strength.
We all know life can knock us down. But in America, we never, ever, ever stay down. Americans always get up. Today, that’s what we’re doing: America is rising anew, choosing hope over fear, truth over lies, and light over darkness.
After 100 days of rescue and renewal, America is ready for takeoff, in my view. We’re working again, dreaming again, discovering again, and leading the world again.
We have shown each other and the world that there’s no quit in America — none.
One hundred days ago, America’s house was on fire. We had to act. And thanks to the extraordinary leadership of Speaker Pelosi; Majority Leader Schumer; and the overwhelming support of the American people — Democrats, independents, and Republicans — we did act.
Togetherwe passed the American Rescue Plan — one of the most consequential rescue packages in American history. We’re already seeing the results. (Applause.) We’re already seeing the results.
After I promised we’d get 100 million COVID-19 vaccine shots into people’s arms in 100 days, we will have provided over 220 million COVID shots in those 100 days. (Applause.)
Thanks to all the help of all of you, we’re marshalling — with your help, everyone’s help — we’re marshalling every federal resource. We’ve gotten vaccines to nearly 40,000 pharmacies and over 700 Community Health Centers where the poorest of the poor can be reached. We’re setting up community vaccination sites, developing mobile units to get to hard-to-reach communities.
Today, 90 percent of Americans now live within five miles of a vaccination site. Everyone over the age of 16 – everyone is now eligible to get vaccinated right now, right away. (Applause.) Go get vaccinated, America. Go and get the vaccination. They’re available. You’re eligible now.
When I was sworn in on January 20th, less than 1 percent of the seniors in America were fully vaccinated against COVID-19. One hundred days later, 70 percent of seniors in America over 65 are protected — fully protected.
Senior deaths from COVID-19 are down 80 percent since January — down 80 percent because of all of you. And more than half of all the adults in America have gotten at least one shot.
At a mass vaccination center in Glendale, Arizona, I asked a nurse — I said, “What’s it like?” She looked at me and she said, “It’s like every shot is giving a dose of hope” — was the phrase. “A dose of hope.”
A dose of hope for an educator in Florida who has a child suffering from an autoimmune disease — wrote to me, said she’s worried — that she was worrying about bringing the virus home. She said she then got vaccinated at a — at a large site, in her car. She said she sat in her car, when she got vaccinated, and just cried — cried out of joy and cried out of relief.
Parents see the smiles on their kids’ faces, for those who are able to go back to school because the teachers and school bus drivers and cafeteria workers have been vaccinated.
Grandparents hugging their children and grandchildren instead of pressing hands against a window to say goodbye.
It means everything. Those things mean everything.
You know, there’s still — you all know it; you know it better than any group of Americans — there’s still more work to do to beat this virus. We can’t let our guard down.
But tonight I can say it: Because of you, the American people, our progress these past 100 days against one of the worst pandemics in history has been one of the greatest logistical achievements — logistical achievements this country has ever seen.
What else have we done in those first 100 days?
We kept our commitment — Democrats and Republicans — of sending $1,400 rescue checks to 85 percent of American households. We’ve already sent more than one — 160 million checks out the door. It’s making the difference. You all know it when you go home. For many people, it’s making all the difference in the world.
A single mom in Texas who wrote to me, she said she couldn’t work, but she said the relief check put food on the table and saved her and her son from eviction from their apartment.
A grandmother in Virginia who told me she immediately took her granddaughter to the eye doctor — something she said she put off for months because she didn’t have the money.
One of the defining images, at least from my perspective, of this crisis has been cars lined up — cars lined up for miles. And not — not people who just barely ever start those cars — nice cars lined up for miles, waiting for a box of food to be put in their trunk.
I don’t know about you, but I didn’t ever think I’d see that in America. And all of this is through no fault of their own. No fault of their own these people are in this position.
That’s why the Rescue Plan is delivering food and nutrition assistance to millions of Americans facing hunger, and hunger is down sharply already.
We’re also providing rental assistance — you all know this, but the American people, I want to make sure they understand — keeping people from being evicted from their homes, providing loans to small businesses to reopen and keep their employees on the job.
During these 100 days, an additional 800,000 Americans enrolled in the Affordable Care Act when I established the special sign-up period to do that — 800,000 in that period.
We’re making one of the largest one-time ever investments — ever — in improving healthcare for veterans. Critical investments to address the opioid crisis. And, maybe most importantly, thanks to the American Rescue Plan, we’re on track to cut child poverty in America in half this year. (Applause.)
[Notably, the Republicans kept their seats and silence.]
And in the process, while this was all going on, the economy created more than 1,300,000 new jobs in 100 days — more jobs in the first — (applause) — more jobs in the first 100 days than any President on record.
The International Monetary Fund — (applause) — the International Monetary Fund is now estimating our economy will grow at a rate of more than 6 percent this year. That will be the fastest pace of economic growth in this country in nearly four decades.
America is moving — moving forward — but we can’t stop now. We’re in competition with China and other countries to win the 21st Century. We’re at a great inflection point in history.
We have to do more than just build back better — I mean “build back.” We have to build back better. We have to compete more strenuously than we have.
Throughout our history, if you think about it, public investment and infrastructure has literally transformed America — our attitudes, as well as our opportunities.
The transcontinental railroad, the interstate highways united two oceans and brought a totally new age of progress to the United States of America.
Universal public schools and college aid opened wide the doors of opportunity.
Scientific breakthroughs took us to the Moon — now we’re on Mars; discovering vaccines; gave us the Internet and so much more.
These are the investments we made together as one country, and investments that only the government was in a position to make. Time and again, they propel us into the future.
That’s why I proposed the American Jobs Plan — a once-in-a-generation investment in America itself. This is the largest jobs plan since World War Two.
It creates jobs to upgrade our transportation infrastructure; jobs modernizing our roads, bridges, highways; jobs building ports and airports, rail corridors, transit lines.
It’s clean water. And, today, up to 10 million homes in America and more than 400,000 schools and childcare centers have pipes with lead in them, including in drinking water — a clear and present danger to our children’s health.
The American Jobs Plan creates jobs replacing 100 percent of the nation’s lead pipes and service lines so every American can drink clean water. (Applause.)
And in the process, it will create thousands and thousands of good-paying jobs. It creates jobs connecting every American with high-speed Internet, including 35 percent of the rural America that still doesn’t have it.
This is going to help our kids and our businesses succeed in the 21st-century economy.
And I am asking the Vice President to lead this effort, if she would —
THE VICE PRESIDENT: Of course.
THE PRESIDENT: — because I know it will get done. (Applause.)
It creates jobs, building a modern power grid. Our grids are vulnerable to storms, hacks, catastrophic failures — with tragic results, as we saw in Texas and elsewhere during the winter storms.
The American Jobs Plan will create jobs that will lay thousands of miles of transmission lines needed to build a resilient and fully clean grid. We can do that. (Applause.)
Look, the American Jobs Plan will help millions of people get back to their jobs and back to their careers.
Two million women have dropped out of the workforce during this pandemic — two million. And too often because they couldn’t get the care they needed to care for their child or care for an elderly parent who needs help.
Eight hundred thousand families are on a Medicare waiting list right now to get homecare for their aging parent or loved one with a disability. If you think it’s not important, check out in your own district.
Democrat or Republican — Democrat or Republican voters, their great concern — almost as much as their children — is taking care of an elderly loved one who can’t be left alone. Medicaid contemplated it, but this plan is going to help those families and create jobs for our caregivers with better wages and better benefits, continuing a cycle of growth.
For too long, we’ve failed to use the most important word when it comes to meeting the climate crisis: “jobs.” Jobs. Jobs. (Applause.)
For me, when I think “climate change,” I think “jobs.”
The American Jobs Plan will put engineers and construction workers to work building more energy-efficient buildings and homes. Electrical workers — IBEW members — installing 500,000 charging stations along our highways so we can own — (applause) — so we can own the electric car market. (Applause.)
Farmers — farmers planting cover crops so they can reduce the carbon dioxide in the air and get paid for doing it. (Applause.)
Look, but think about it: There is simply no reason why the blades for wind turbines can’t be built in Pittsburgh instead of Beijing. No reason. None. No reason. (Applause.)
So, folks, there’s no reason why American — American workers can’t lead the world in the production of electric vehicles and batteries. I mean, there is no reason. We have this capacity. (Applause.) We have the brightest, best-trained people in the world.
The American Jobs Plan is going to create millions of good-paying jobs — jobs Americans can raise a family on — as my dad would then say, “with a little breathing room.”
And all the investments in the American Jobs Plan will be guided by one principle: Buy American. (Applause.) Buy American.
And I might note, parenthetically — (applause) — that does not — that does not violate any trade agreement. It’s been the law since the ’30s: Buy American.
American tax dollars are going to be used to buy American products made in America to create American jobs. That’s the way it’s supposed to be and it will be in this administration. (Applause.)
And I made it clear to all my Cabinet people. Their ability to give exemptions has been strenuously limited. It will be American products.
Now I know some of you at home are wondering whether these jobs are for you. So many of you — so many of the folks I grew up with feel left behind, forgotten in an economy that’s so rapidly changing. It’s frightening.
I want to speak directly to you. Because if you think about it, that’s what people are most worried about: “Can I fit in?”
Independent experts estimate the American Jobs Plan will add millions of jobs and trillions of dollars to economic growth in the years to come. It is an eight-year program. These are good-paying jobs that can’t be outsourced.
Nearly 90 percent of the infrastructure jobs created in the American Jobs Plan do not require a college degree; 75 percent don’t require an associate’s degree.
The American Jobs Plan is a blue-collar blueprint to build America. That’s what it is. (Applause.)
And it recognizes something I’ve always said in this chamber and the other. Good guys and women on Wall Street, but Wall Street didn’t build this country. The middle class built the country, and unions built the middle class. (Applause.)
So that’s why I’m calling on Congress to pass the Protect the Right to Organize Act — the PRO Act — and send it to my desk so we can support the right to unionize. (Applause.)
And, by the way, while you’re thinking about sending things to my desk — (laughs) — let’s raise the minimum wage to $15. (Applause.)
No one — no one working 40 hours a week — no one working 40 hours a week should live below the poverty line.
We need to ensure greater equity and opportunity for women. And while we’re doing this, let’s get the Paycheck Fairness Act to my desk as well — equal pay. It’s been much too long. And if you’re wondering whether it’s too long, look behind me. (Applause.)
And finally, the American Jobs Plan will be the biggest increase in nondefense research and development on record. We will see more technological change — and some of you know more about this than I do — we’ll see more technological change in the next 10 years than we saw in the last 50. That’s how rapidly artificial intelligence and so much more is changing.
And we’re falling behind the competition with the rest of the world.
Decades ago, we used to invest 2 percent of our gross domestic product in America — 2 percent of our gross domestic product — in research and development.
Today, Mr. Secretary, that’s less than 1 percent. China and other countries are closing in fast. We have to develop and dominate the products and technologies of the future:advanced batteries, biotechnology, computer chips, clean energy.
The Secretary of Defense can tell you — and those of you on — who work on national security issues know — the Defense Department has an agency called DARPA — the Defense Advanced Research Project Agency. The people who set up before I came here — and that’s been a long time ago — to develop breakthroughs that enhance our national security -– that’s their only job. And it’s a semi-separate agency; it’s under the Defense Department. It’s led to everything from the discovery of the Internet to GPS and so much more that has enhanced our security.
The National Institute of Health — the NIH –- I believe, should create a similar Advanced Research Projects Agency for Health. (Applause.)
And that would — here’s what it would do. It would have a singular purpose: to develop breakthroughs to prevent, detect, and treat diseases like Alzheimer’s, diabetes, and cancer.
I’ll still never forget when we passed the cancer proposal the last year I was Vice President — almost $9 million going to NIH. And if you excuse the point of personal privilege, I’ll never forget you standing and mentioning — saying you’d name it after my deceased son. It meant a lot.
But so many of us have deceased sons, daughters, and relatives who died of cancer. I can think of no more worthy investment. I know of nothing that is more bipartisan. So, let’s end cancer as we know it. (Applause.) It’s within our power. (Applause.) It’s within our power to do it. (Applause.)
Investments in jobs and infrastructure, like the ones we’re talking about, have often had bipartisan support in the past. Vice President Harris and I met regularly in the Oval Office with Democrats and Republicans to discuss the Jobs Plan. And I applaud a group of Republican senators who just put forward their own proposal.
So, let’s get to work. I wanted to lay out, before the Congress, my plan before we got into the deep discussions. I’d like to meet with those who have ideas that are different — they think are better. I welcome those ideas.
But the rest of the world is not waiting for us. I just want to be clear: From my perspective, doing nothing is not an option. (Applause.)
Look, we can’t be so busy competing with one another that we forget the competition that we have with the rest of the world to win the 21st century.
Secretary Blinken can tell you, I spent a lot of time with President Xi — traveled over 17,000 miles with him; spent, they tell me, over 24 hours in private discussions with him. When he called to congratulate me, we had a two-hour discussion. He’s deadly earnest about becoming the most significant, consequential nation in the world. He and others — autocrats — think that democracy can’t compete in the 21st century with autocracies because it takes too long to get consensus.
To win that competition for the future, in my view, we also need to make a once-in-a-generation investment in our families and our children. That’s why I’ve introduced the American Families Plan tonight, which addresses four of the biggest challenges facing American families and, in turn, America.
First is access to a good education. When this nation made 12 years of public education universal in the last century, it made us the best-educated, best-prepared nation in the world. It’s, I believe, the overwhelming reason that propelled us to where we got in the 21st — in the 20th century.
But the world has caught up, or catching up. They are not waiting. I would say, parenthetically: If we were sitting down, put a bipartisan committee together and said, “Okay, we’re going to decide what we do in terms of government providing for free education,” I wonder whether we’d think, as we did in the 20th century, that 12 years is enough in the 21st century. I doubt it. Twelve years is no longer enough today to compete with the rest of the world in the 21st Century.
That’s why my American Families Plan guarantees four additional years of public education for every person in America, starting as early as we can.
The great universities of this country have conducted studies over the last 10 years. It shows that adding two years of universal high-quality preschool for every three-year-old and four-year-old, no matter what background they come from, it puts them in the position to be able to compete all the way through 12 years. It increases exponentially their prospect of graduating and going on beyond graduation.
The research shows when a young child goes to school — not daycare — they are far more likely to graduate from high school and go to college or something after high school.
When you add two years of free community college on top of that, you begin to change the dynamic. (Applause.) We can do that. (Applause.)
And we’ll increase Pell Grants and invest in Historical Black Colleges and Universities, Tribal Colleges, Minority-Serving Institutions. The reason is: They don’t have the endowments, but their students are just as capable of learning about cybersecurity, just as capable of learning about metallurgy — all the things that are going on that provide those jobs of the future.
Jill was a community college professor who teaches today as First Lady. She has long said — (applause). She has long — (applause). If I’ve heard it once, I’ve heard it a thousand times: “Joe, any country that out-educates us is going to outcompete us.” She’ll be deeply involved in leading this effort. Thank you, Jill.
Second thing we need: American Families Plan will provide access to quality, affordable childcare. We guarantee — (applause). And I’m proposing a legislation to guarantee that low- and middle-income families will pay no more than 7 percent of their income for high-quality care for children up to the age of 5. The most hard-pressed working families won’t have to spend a dime.
Third, the American Families Plan will finally provide up to 12 weeks of paid leave and medical leave — family and medical leave. We’re one of the few industrial countries in the world — (applause).
No one should have to choose between a job and paycheck or taking care of themselves and their loved ones –- a parent, a spouse, or child.
And fourth, the American Family Plan puts directly into the pockets of millions of Americans. In March, we expanded a tax credit for every child in a family. Up to a $3,000 per child, if they’re under six years of age — I mean, excuse me — under six years of age, and $3,600 for children over six years of age.
With two parents, two kids, that’s $7,200 in the pockets that’s going to help to take care of your family. And that will help more than 65 million children and help cut [child] poverty in half. (Applause.) And we can afford it.
So we did that in the last piece of legislation we passed. But let’s extend that Child Care Tax Credit at least through the end of 2025. (Applause.)
The American Rescue Plan lowered healthcare premiums for 9 million Americans who buy their coverage under the Affordable Care Act. I know that’s really popular on this side of the aisle. (Laughter.) But let’s make that provision permanent so their premiums don’t go back up. (Applause.)
In addition to my Families Plan, I’m going to work with Congress to address, this year, other critical priorities for American families.
The Affordable Care Act has been a lifeline for millions of Americans, protecting people with preexisting conditions, protecting women’s health. And the pandemic has demonstrated how badly — how badly it’s needed. Let’s lower deductibles for working families on the Affordable Care — in the Affordable Care Act. (Applause.) And let’s lower prescription drug costs. (Applause.)
We know how to do this. The last President had that as an objective. We all know how outrageously expensive drugs are in America.
In fact, we pay the highest prescription drug prices of anywhere in the world right here in America — nearly three times — for the same drug, nearly three times what other countries pay. We have to change that, and we can.
Let’s do what we’ve always talked about for all the years I was down here in this — in this body — in Congress. Let’s give Medicare the power to save hundreds of billions of dollars by negotiating lower drug prescription prices. (Applause.)
And, by the way, that won’t just — that won’t just help people on Medicare; it will lower prescription drug costs for everyone.
And the money we save, which is billions of dollars, can go to strengthen the Affordable Care Act and expand Medicare coverage benefits without costing taxpayers an additional penny. It’s within our power to do it; let’s do it now. (Applause.)
We’ve talked about it long enough. Democrats and Republicans, let’s get it done this year. This is all about a simple premise: Healthcare should be a right, not a privilege in America. (Applause.)
So, how do we pay for my Jobs and Family Plan? I made it clear, we can do it without increasing the deficits. Let’s start with what I will not do: I will not impose any tax increase on people making less than $400,000. It’s — but it’s time for corporate America and the wealthiest 1 percent of Americans to just begin to pay their fair share. (Applause.) Just their fair share.
Sometimes I have arguments with my friends in the Democratic Party. I think you should be able to become a billionaire and a millionaire, but pay your fair share.
A recent study shows that 55 of the nation’s biggest corporations paid zero federal tax last year. Those 55 corporations made in excess of $40 billion in profit. A lot of companies also evade taxes through tax havens in Switzerland and Bermuda and the Cayman Islands. And they benefit from tax loopholes and deductions for offshoring jobs and shifting profits overseas. It’s not right.
We’re going to reform corporate taxes so they pay their fair share and help pay for the public investments their businesses will benefit from as well. (Applause.)
We’re going to reward work, not just wealth. We take the top tax bracket for the wealthiest 1 percent of Americans — those making over $400,000 or more — back up to where it was when George W. Bush was President when he started: 39.6 percent. That’s where it was when George W. was President.
We’re going to get rid of the loopholes that allow Americans who make more than a million dollars a year and pay a lower tax rate on their capital gains than Americans who receive a paycheck.We’re only going to affect three tenths of 1 percent of all Americans by that action. Three tenths of 1 percent.
And the IRS is going to crack down on millionaires and billionaires who cheat on their taxes. It’s estimated to be billions of dollars by think tanks that are left, right, and center.
I’m not looking to punish anybody. But I will not add a tax burden — an additional tax burden to the middle class in this country. They’re already paying enough. I believe what I propose is fair — (applause) — fiscally responsible, and it raises revenue to pay for the plans I have proposed, and will create millions of jobs that will grow the economy and enhance our financial standing in the country.
When you hear someone say that they don’t want to raise taxes on the wealthiest 1 percent or corporate America, ask them: “Whose taxes you want to raise instead? Whose are you going to cut?”
Look, the big tax cut of 2017 — remember, it was supposed to pay for itself — that was how it was sold — and generate vast economic growth. Instead, it added $2 trillion to the deficit. It was a huge windfall for corporate America and those at the very top.
Instead of using the tax saving to raise wages and invest in research and development, it poured billions of dollars into the pockets of CEOs. In fact, the pay gap between CEOs and their workers is now among the largest in history.
According to one study, CEOs make 320 times what the average worker in their corporation makes. It used to be in the — below a hundred.
The pandemic has only made things worse. Twenty million Americans lost their job in the pandemic — working- and middle-class Americans. At the same time, roughly 650 billionaires in America saw their net worth increase by more than $1 trillion — in the same exact period. Let me say it again: 650 people increased their wealth by more than $1 trillion during this pandemic. And they’re now worth more than $4 trillion.
My fellow Americans, trickle-down — trickle-down economics has never worked and it’s time to grow the economy from the bottom and the middle out. (Applause.)
You know, there’s a broad consensus of economists — left, right, center — and they agree what I’m proposing will help create millions of jobs and generate historic economic growth. These are among the highest-value investments we can make as a nation.
I’ve often said: Our greatest strength is the power of our example, not just the example of our power.
In my conversations with world leaders — and I’ve spoken to over 38, 40 of them now — I’ve made it known — I’ve made it known that America is back. And you know what they say? The comment that I hear most of all from them is they say, “We see America is back but for how long? But for how long?”
My fellow Americans, we have to show not just that we’re back, but that we’re back to stay and that we aren’t going to go it alone. (Applause.) We’re going to do it by leading with our allies. (Applause.)
No one nation can deal with all the crises of our time — from terrorism, to nuclear proliferation, mass migration, cybersecurity, climate change, as well as experi- — what we’re experiencing now with pandemics.
There’s no wall high enough to keep any virus out. And our own vaccine supply — as it grows to meet our needs; and we’re meeting them — will become an arsenal of vaccines for other countries, just as America was the arsenal of democracy for the world — (applause) — and in consequence, influenced the world. (Applause.)
But every American will have access before that occur- — every American will have access to be fully covered by COVID-19 — from the vaccines we have.
Look, the climate crisis is not our fight alone; it’s a global fight. The United States accounts, as all of you know, less than 15 percent of carbon emissions. The rest of the world accounts for 85 percent. That’s why I kept my commitment to rejoin the Paris Accord — because if we do everything perfectly, it’s not going to ultimately matter.
I kept my commitment to convene a climate summit right here in America with all of the major economies of the world — China, Russia, India, the European Union — and I said I’d do it in my first 100 days.
I want to be very blunt about it: I had — my attempt was to make sure that the world could see there was a consensus, that we are at an inflection point in history. And consensus — the consensus is: If we act to save the planet, we can create millions of jobs and economic growth and opportunity to raise the standard of living to almost everyone around the world.
If you’ve watched any of it — and you were all busy; I’m sure you didn’t have much time — that’s what virtually every nation said, even the ones that aren’t doing their fair share.
The investments I’ve proposed tonight also advance the foreign policy, in my view, that benefits the middle class. That means making sure every nation plays by the same rules in the global economy, including China.
In my discussions — in my discussions with President Xi, I told him, “We welcome the competition.We’re not looking for conflict.” But I made absolutely clear that we will defend America’s interests across the board.America will stand up to unfair trade practices that undercut American workers and American industries, like subsidies from state — to state-owned operations and enterprises and the theft of American technology and intellectual property.
I also told President Xi that we’ll maintain a strong military presence in the Indo-Pacific, just as we do with NATO in Europe — not to start a conflict, but to prevent one. (Applause.)
I told him what I’ve said to many world leaders: that America will not back away from our commitments — our commitment to human rights and fundamental freedoms and to our alliances.
And I pointed out to him: No responsible American President could remain silent when basic human rights are being so blatantly violated. An American President — President has to represent the essence of what our country stands for. America is an idea — the most unique idea in history: We are created, all of us, equal. It’s who we are, and we cannot walk away from that principle and, in fact, say we’re dealing with the American idea.
With regard to Russia, I know it concerns some of you, but I made very clear to Putin that we’re not going to seek escalation, but their actions will have consequence if they turn out to be true. And they turned out to be true, so I responded directly and proportionally to Russia’s interference in our elections and the cyberattacks on our government and our business. They did both of these things, and I told them we would respond, and we have.
But we can also cooperate when it’s in our mutual interest. We did it when we extended the New START Treaty on nuclear arms, and we’re working to do it on climate change. But he understands we will respond.
On Iran and North Korea — nuclear programs that present serious threats to American security and the security of the world — we’re going to be working closely with our allies to address the threats posed by both of these countriesthrough diplomacy, as well as stern deterrence.
And American leadership means ending the forever war in Afghanistan. (Applause.) We have — (applause) — we have, without hyperbole, the greatest fighting force in the history of the world. I’m the first President in 40 years who knows what it means to have a son serving in a warzone.
Today we have servicemembers serving in the same warzone as their parents did. We have servicemembers in Afghanistan who were not yet born on 9/11.
The War in Afghanistan, as we remember the debates here, were never meant to be multi-generational undertakings of nation-building. We went to Afghanistan to get terrorists — the terrorists who attacked us on 9/11 — and we said we would follow Osama bin Laden to the gates of hell to do it. If you’ve been to the upper Kunar Valley, you’ve kind of seen the gates of hell. And we delivered justice to bin Laden. We degraded the terrorist threat of al Qaeda in Afghanistan. And after 20 years of value — valor and sacrifice, it’s time to bring those troops home. (Applause.)
Look, even as we do, we will maintain an over-the-horizon capacity to suppress future threats to the homeland. And make no mistake: In 20 years, terrorists has — terrorism has metastasized. The threat has evolved way beyond Afghanistan. And those of you in the intelligence committees, the foreign relations committee, the defense committees, you know well: We have to remain vigilant against the threats to the United States wherever they come from. Al Qaeda and ISIS are in Yemen, Syria, Somalia, other places in Africa, the Middle East, and beyond.
And we won’t ignore what our intelligence agencies have determined to be the most lethal terrorist threat to the homeland today: White supremacy is terrorism. We’re not going to ignore that either.
My fellow Americans, look, we have to come together to heal the soul of this nation. It was nearly a year ago, before her father’s funeral, when I spoke with Gianna Floyd, George Floyd’s young daughter. She’s a little tyke, so I was kneeling down to talk to her so I could look her in the eye. And she looked at me and she said, “My daddy changed the world.” Well, after the conviction of George Floyd’s murderer, we can see how right she was if — if we have the courage to act as a Congress.
We’ve all seen the knee of injustice on the neck of Black Americans.Now is our opportunity to make some real progress. The vast majority of men and women wearing the uniform and a badge serve our communities, and they serve them honorably. I know them. I know they want — (applause) — I know they want to help meet this moment as well.
My fellow Americans, we have to come together to rebuild trust between law enforcement and the people they serve, to root out systemic racism in our criminal justice system, and to enact police reform in George Floyd’s name that passed the House already.
I know Republicans have their own ideas and are engaged in the very productive discussions with Democrats in the Senate. We need to work together to find a consensus. But let’s get it done next month, by the first anniversary of George Floyd’s death. (Applause.)
The country supports this reform, and Congress should act — should act. We have a giant opportunity to bend to the arc of the moral universe towards justice — real justice. And with the plans outlined tonight, we have a real chance to root out systemic racism that plagues America and American lives in other ways; a chance to deliver real equity — good jobs, good schools, affordable housing, clean air, clean water, being able to generate wealth and pass it down two generations because you have an access to purchase a house. Real opportunities in the lives of more Americans — Black, white, Latino, Asian Americans, Native Americans.
Look, I also want to thank the United States Senate for voting 94 to 1 to pass the COVID-19 Hate Crimes Act to protect Asian Americans and Pacific Islanders. (Applause.) You acted decisively. (Applause.) And you can see on television the viciousness of the hate crimes we’ve seen over the past year — this past year and for too long. I urge the House to do the same and send that legislation to my desk, which I will gladly, anxiously sign.
I also hope Congress can get to my desk the Equality Act to protect LGBTQ Americans. (Applause.) To all transgender Americans watching at home, especially young people who are so brave, I want you to know your President has your back.
Another thing: Let’s authorize the Violence Against Women Act, which has been law for 27 years. (Applause.) Twenty-seven years ago, I wrote it. It’ll close the — the act that has to be authorized now will close the “boyfriend” loophole to keep guns out of the hands of abusers. The court order said, “This is an abuser. You can’t own a gun.” It’s to close that loophole that existed.
You know, it’s estimated that 50 women are shot and killed by an intimate partner every month in America — 50 a month.Let’s pass it and save some lives. (Applause.)
And I need not — I need not tell anyone this, but gun violence is becoming an epidemic in America.
The flag at the White House was still flying at half-mast for the 8 victims in the mass shooting in Georgia when 10 more lives were taken in a mass shooting in Colorado.
And in the week in between those two events, 250 other Americans were shot dead in the streets of America — 250 shot dead.
I know how hard it is to make progress on this issue. In the ’90s, we passed universal background checks, a ban on assault weapons and high-capacity magazines that hold 100 rounds that can be fired off in seconds. We beat the NRA. Mass shootings and gun violence declined. Check out the report in over 10 years. But in the early twe- — 2000s, the law expired, and we’ve seen daily bloodshed since. I’m not saying if the law continued, we wouldn’t see bloodshed.
More than two weeks ago in the Rose Garden, surrounded by some of the bravest people I know — the survivors and families who lost loved ones to gun violence — I laid out several of the Department of Justice a- — actions that are being taken to — impact on this epidemic.
One of them is banning so-called “ghost guns.” These are homemade guns built from a kit that includes directions on how to finish the firearm. The parts have no serial numbers, so they show up at crime scenes and they can’t be traced. The buyers of these ghost gun kits aren’t required to pass any background check. Anyone, from a criminal or terrorist, could buy this kit and within 30 minutes have a weapon that’s lethal. But no more.
And I will do everything in my power to protect the American people from this epidemic of gun violence, but it’s time for Congress to act as well. (Applause.)
Look, I don’t want to become confrontational but we need more Senate Republicans to join the overwhelming majority of Democrat colleagues and close the loopholes requiring a background check on purchases of guns. We need a ban on assault weapons and high-capacity magazines. And don’t tell me it can’t be done. We did it before, and it worked.
Talk to most responsible gun owners and hunters. They’ll tell you there’s no possible justification for having 100 rounds in a weapon. What do you think — deer are wearing Kevlar vests? (Laughter.) They’ll tell you that there are too many people today who are able to buy a gun but shouldn’t be able to buy a gun.
These kinds of reasonable reforms have overwhelming support from the American people, including many gun owners. The country supports reform and is — and Congress should act.
This shouldn’t be a red or blue issue. And no amendment to the Constitution is absolute. You can’t yell “Fire!” in a crowded theater. From the very beginning, there were certain guns, weapons, that could not be owned by Americans. Certain people could not own those weapons ever.
We’re not changing the Constitution; we’re being reasonable. I think this is not a Democrat or Republican issue; I think it’s an American issue.
And here’s what else we can do: Immigration has always been essential to America. Let’s end our exhausting war over immigration. For more than 30 years, politicians have talked about immigration reform, and we’ve done nothing about it. It’s time to fix it.
On day one of my presidency, I kept my commitment and sent a comprehensive immigration bill to the United States Congress. If you believe we need to secure the border, pass it, because it has a lot of money for high-tech border security. If you believe in a pathway to citizenship, pass it so over 11 million undocumented folks — the vast majority are here overstaying visas. Pass it. We can actually — if you actually want to solve a problem, I’ve sent a bill to take a close look at it.
We have to — also have to get at the root problem of why people are fleeing, particularly to — to our southern border from Guatemala, Honduras, and El Salvador: the violence, the corruption, the gangs, and the political instability, hunger, hurricanes, earthquakes, natural disasters.
When I was President, my President — when I was Vice President, the President asked me to focus on providing the help needed to address the root causes of migration. And it helped keep people in their own countries instead of being forced to leave. The plan was working, but the last administration decided it was not worth it.
I’m restoring the program and asked Vice President Harris to lead our diplomatic effort to take care of this. I have absolute confidence she’ll get the job done. (Applause.)
Now, look, if you don’t like my plan, let’s at least pass what we all agree on. Congress needs to pass legislation this year to finally secure protection for DREAMers — the young people who have only known America as their home. (Applause.)
And permanent protection for immigrants who are here on temporary protected status who came from countries beset by manmade and natural-made violence and disaster. (Applause.)
As well as a pathway to citizenship for farmworkers who put food on our tables. (Applause.)
Look, immigrants have done so much for America during this pandemic and throughout our history. The country supports immigration reform. We should act. Let’s argue over it, let’s debate it, but let’s act. (Applause.)
And if we truly want to restore the soul of America, we need to protect the sacred right to vote. Most people — (applause).
More people voted in the last presidential election than any time in American history, in the middle of the worst pandemic ever. It should be celebrated. Instead, it’s being attacked.
Congress should pass H.R. 1 and the John Lewis Voting Rights Act and send it to my desk right away. (Applause.) The country supports it. The Congress should act now. (Applause.)
Look, in closing, as we gather here tonight, the images of a violent mob assaulting this Capitol, desecrating our democracy, remain vivid in all our minds.
Lives were put at risk — many of your lives. Lives were lost. Extraordinary courage was summoned. The insurrection was an existential crisis –- a test of whether our democracy could survive. And it did.
But the struggle is far from over. The question of whether our democracy will long endure is both ancient and urgent, as old as our Republic — still vital today.
Can our democracy deliver on its promise that all of us, created equal in the image of God, have a chance to lead lives of dignity, respect, and possibility?
Can our democracy deliver the most — to the most pressing needs of our people?
Can our democracy overcome the lies, anger, hate, and fears that have pulled us apart?
America’s adversaries –- the autocrats of the world –- are betting we can’t. And I promise you, they’re betting we can’t. They believe we’re too full of anger and division and rage.
They look at the images of the mob that assaulted the Capitol as proof that the sun is setting on American democracy. But they are wrong. You know it; I know it. But we have to prove them wrong.
We have to prove democracy still works — that our government still works and we can deliver for our people.
In our first 100 days together, we have acted to restore the people’s faith in democracy to deliver. We’re vaccinating the nation. We’re creating hundreds of thousands of new jobs. We’re delivering real results to people; they can see it and feel it in their own lives.
Opening doors of opportunity, guaranteeing some more fairness and justice — that’s the essence of America. That’s democracy in action.
Our Constitution opens with the words — as trite as it sounds — “We the People”. Well, it’s time to remember that “We the People” are the government — you and I. Not some force in a distant capital. Not some powerful force that we have no control over. It’s us. It’s “We the People.”
In another era when our democracy was tested, Franklin Roosevelt reminded us, “In America, we do our part.” We all do our part. That’s all I’m asking: that we do our part, all of us.
If we do that, we will meet the center challenge of the age by proving that democracy is durable and strong. Autocrats will not win the future. We will. America will. And the future belongs to America.
As I stand here tonight before you, in a new and vital hour of life and democracy of our nation, and I can say with absolute confidence: I have never been more confident or optimistic about America — not because I’m President, because what’s happening with the American people.
We have stared into the abyss of insurrection and autocracy, pandemic and pain, and “We the People” did not flinch.
At the very moment our adversaries were certain we would pull apart and fail, we came together. We united.
With light and hope, we summoned a new strength, new resolve to position us to win the competition of the 21st century, on our way to a union more perfect, more prosperous, and more just, as one people, one nation, and one America.
Folks, as I told every world leader I’ve ever met with over the years, it’s never ever, ever been a good bet to bet against America, and it still isn’t. (Applause.)
We are the United States of America. (Applause.) There is not a single thing — nothing — nothing beyond our capacity. We can do whatever we set our mind to do if we do it together. (Applause.) So let’s begin to get together. (Applause.)
God bless you all, and may God protect our troops. Thank you for your patience. (Applause.)
President Joe Biden is expected to lay out his American Families Plan – a $1 trillion investment “in our kids, our families and our economic future” over 10 years, including universal pre-K, paid parental leave, child care, free community college and how he proposes to pay for it ($800 billion in tax enforcement, higher rates for the wealthiest payers and corporations) – in his first speech to the joint session of Congress on the eve of his 100th day in office.
The White House provided a fact sheet:
Today, President Biden announced the American Families Plan, an investment in our kids, our families, and our economic future.
In March, the President signed into law the American Rescue Plan, which continues to provide immediate relief to American families and communities. Approximately 161 million payments of up to $1,400 per person have gone out to households, schools are reopening, and 100 percent of Americans ages 16 and older are now eligible for a COVID-19 vaccine. The Rescue Plan is projected to lift more than five million children out of poverty this year, cutting child poverty by more than half. While too many Americans are still out of work, we are seeing encouraging signs in the labor market, as businesses begin to rehire and some of the hardest hit sectors begin to reopen.
But the President knows that we need to do more. It is not enough to restore where we were prior to the pandemic. We need to build a stronger economy that does not leave anyone behind – we need to build back better. President Biden knows a strong middle class is the backbone of America. He knows it should be easier for American families to break into the middle class, and easier to stay in the middle class. He knows that we need to continue to enable those who dropped out of the workforce – particularly the approximately two million women who left due to COVID – to rejoin and stay in the workforce. And, he knows that, unlike in past decades, policies to make life easier for American families must focus on bringing everyone along: inclusive of gender, race, or place of residence – urban, suburban, or rural.
The American Jobs Plan and the American Families Plan are once-in-a-generation investments in our nation’s future. The American Jobs Plan will create millions of good jobs, rebuild our country’s physical infrastructure and workforce, and spark innovation and manufacturing here at home. The American Families Plan is an investment in our children and our families—helping families cover the basic expenses that so many struggle with now, lowering health insurance premiums, and continuing the American Rescue Plan’s historic reductions in child poverty. Together, these plans reinvest in the future of the American economy and American workers, and will help us out-compete China and other countries around the world.
To grow the middle class, expand the benefits of economic growth to all Americans, and leave the United States more competitive, President Biden’s American Families Plan will:
Add at least four years of free education. Investing in education is a down payment on the future of America. As access to high school became more widely available at the turn of the 20th Century, it made us the best-educated and best-prepared nation in the world. But everyone knows that 12 years is not enough today. The American Families Plan will make transformational investments from early childhood to postsecondary education so that all children and young people are able to grow, learn, and gain the skills they need to succeed. It will provide universal, quality-preschool to all three- and four- year-olds. It will provide Americans two years of free community college. It will invest in making college more affordable for low- and middle-income students, including students at Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), and institutions such as Hispanic-serving institutions, Asian American and Native American Pacific Islander-serving institutions, and other minority-serving institutions (MSIs). And, it will invest in our teachers as well as our students, improving teacher training and support so that our schools become engines of growth at every level.
Provide direct support to children and families. Our nation is strongest when everyone has the opportunity to join the workforce and contribute to the economy. But many workers struggle to both hold a full-time job and care for themselves and their families. The American Families Plan will provide direct support to families to ensure that low- and middle-income families spend no more than seven percent of their income on child care, and that the child care they access is of high-quality. It will also provide direct support to workers and families by creating a national comprehensive paid family and medical leave program that will bring the American system in line with competitor nations that offer paid leave programs. The system will also allow people to manage their health and the health of their families. And, it will provide critical nutrition assistance to families who need it most and expand access to healthy meals to our nation’s students – dramatically reducing childhood hunger.
Extend tax cuts for families with children and American workers. While the American Rescue Plan provided meaningful relief for hundreds of millions of Americans, too many families and workers feel the squeeze of too-low wages and the high costs of meeting their basic needs and their aspirations. At the same time, the wealthiest Americans continue to get further and further ahead. The American Families Plan will extend key tax cuts in the American Rescue Plan that benefit lower- and middle-income workers and families, including the Child Tax Credit, the Earned Income Tax Credit, and the Child and Dependent Care Tax Credit. In addition to making it easier for families to make ends meet, tax credits for working families have been shown to boost child academic and economic performance over time. The American Families Plan will also extend the expanded health insurance tax credits in the American Rescue Plan. These credits are providing premium relief that is lowering health insurance costs by an average of $50 per person per month for nine million people, and will enable four million uninsured people to gain coverage.
Leading economic research has shown that the investments proposed in the American Families Plan will yield significant economic returns – boosting productivity and economic growth, producing a larger, more productive, and healthier workforce on a sustained basis, and generating savings to states and the federal government. Evidence shows that a dollar invested in high-quality early childhood programs for low-income children will result in up to $7.30 in benefits, including increased wages, improved health, and reduced crime. Parental paid leave has been shown to keep mothers in the workforce, increasing labor force participation and boosting economic growth. And, sustained tax credits for families with children have been found to yield a lifetime of benefits, ranging from higher educational attainment to higher lifetime earnings
In all, the American Families Plan includes $1.8 trillion in investments and tax credits for American families and children over ten years. It consists of about $1 trillion in investments and $800 billion in tax cuts for American families and workers. Alongside the American Families Plan, the President will be proposing a set of measures to make sure that the wealthiest Americans pay their share in taxes, while ensuring that no one making $400,000 per year or less will see their taxes go up. When combined with President Biden’s American Jobs Plan, this legislation will be fully paid for over 15 years, and will reduce deficits over the long term.
ADD AT LEAST FOUR YEARS OF FREE PUBLIC EDUCATION, CLOSE EQUITY GAPS, AND MAKE COLLEGE MORE AFFORDABLE
Early in the 20th century, the United States set a new global standard by expanding access to free public education through high school. Direct public investment in our children’s future propelled U.S. economic growth and enhanced our global competitiveness. Now, mounting evidence suggests that 12 years of school is no longer sufficient to prepare our students for success in today’s economy. Research tells us that we must invest early to support our children’s development and readiness for academic success; our transforming economy requires that we provide every student the opportunity to obtain a postsecondary degree or certificate.
That is why the American Families Plan calls for an additional four years of free, public education for our nation’s children. Specifically, President Biden is calling for $200 billion for free universal pre-school for all three- and four-year-olds and $109 billion for two years of free community college so that every student has the ability to obtain a degree or certificate. In addition, he is calling for an over $80 billion investment in Pell Grants, which would help students seeking a certificate or a two- or four-year degree. Recognizing that access to postsecondary education is not enough, the American Families Plan includes $62 billion to invest in evidence-based strategies to strengthen completion and retention rates at community colleges and institutions that serve students from our most disadvantaged communities. This is alongside a $46 billion investment in HBCUs, TCUs, and MSIs. President Biden is also calling for $9 billion to train, equip and diversify American teachers in order to ensure that our high school graduates are ready for success. These investments, combined with those laid out in the President’s American Jobs Plan, will boost earnings, expand employment opportunities, and enable the U.S. to win the 21st century.
UNIVERSAL PRE-SCHOOL FOR ALL THREE- AND FOUR-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, many children, but 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 more affluent peers. In addition to providing critical benefits for children, preschool has also been shown to increase labor force participation among parents – especially women — boosting family earnings and driving economic growth. By some estimates, the benefits of a universal pre-K system to U.S. GDP are more than three times greater than the investment needed to provide this service.
President Biden is calling for a national partnership with states to offer free, high-quality, accessible, and inclusive preschool to all three-and four-year-olds, benefitting five million children and saving the average family $13,000, when fully implemented. This historic $200 billion investment in America’s future will prioritize high-need areas and enable communities and families to choose the settings that work best for them. The President’s plan will also ensure that all publicly-funded preschool is high-quality, with low student-to-teacher ratios, 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 another credential that supports their work as an educator, or 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 EDUCATION 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 need and deserve additional support to build their skills, increase their earnings, remain competitive, and share in the benefits of the new economy. President Biden’s plan will expand access to affordable postsecondary education, laying the groundwork for innovation and inclusive economic growth for all Americans. Specifically, President Biden’s plan will:
Offer two years of free community college to all Americans, including DREAMers. The current crisis has led to a steep college enrollment decline, particularly for low-income students and students of color. As of Fall 2020, high-minority and high-poverty high schools saw a 9.4 percent and 11.4 percent decline in college enrollment, respectively. But even before the pandemic, cost remained a barrier to attending and graduating from community college for many Americans. President Biden’s $109 billion plan will ensure that first-time students and workers wanting to reskill can enroll in a community college to earn a degree or credential for free. Students can use the benefit over 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. While nearly 7 million students depend on Pell Grants, the grant has not kept up with the rising cost of college. Over the last 50 years, the value of Pell Grants has plummeted. The maximum grant went from covering nearly 80 percent of the cost of a four-year college degree to under 30 percent — leading millions of low-income students to take out debt to finance their education. One in three community college students receive Pell Grants to pay for their education. Among students of color, nearly 60 percent of Black, half of American Indian or Alaska Native, almost half of Latino, and over one-third of Native Hawaiian or Pacific Islander students rely on Pell Grants to pay for college. The American Families Plan will increase the maximum Pell Grant award by approximately $1,400, a down payment on President Biden’s commitment to double the maximum award. The plan also allows DREAMers to access Pell Grants.
Increase college retention and completion rates. An education beyond high school can lead to higher pay, financial stability, social mobility, and better health outcomes. It also has public benefits such as a reduction in crime rates and higher civic engagement. However, far too many students enter college but do not graduate. Research shows that only approximately three out of five students finish any type of degree or certificate program within six years. To complete, students need additional support. The President is proposing a bold $62 billion grant program to invest in completion and retention activities at colleges and universities that serve high numbers of low-income students, particularly community colleges. States, territories, and Tribes will receive grants to provide funding to colleges that adopt innovative, proven solutions for student success, 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 diverse 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. For example, while HBCUs are only three percent of four-year universities, their graduates make up approximately 80 percent of Black judges, half of Black lawyers and doctors, and 25 percent of Black undergraduates earning STEM degrees. Yet, these institutions have significantly less resources than other top colleges and universities, undermining their ability to grow and support more students. President Biden is calling on Congress to make a historic investment in HBCU, TCU, and MSI affordability. Specifically, he is calling for a new $39 billion program that provides two years of subsidized tuition for students from families earning less than $125,000 enrolled in a four-year HBCU, TCU, or MSI. 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 directed towards building a pipeline of skilled health care workers with graduate degrees. These 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 tackle longstanding inequities in postsecondary education and make the U.S. more competitive on the global stage.
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, strengthening the program, and expanding it to early childhood educators. The President’s plan also invests $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 teacher candidates of color. His plan targets $400 million for teacher preparation at HBCUs, TCUs, and MSIs and $900 million for the development of special education teachers.
Help current teachers earn in-demand credentials. Many teachers are eager to answer the call to get certified in areas their schools need, like special education, but are deterred due to the high cost of professional programs. President Biden is calling on Congress to invest $1.6 billion 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 funding will support over 100,000 educators, with priority for public school teachers with at least two years of experience at schools with a significant portion of low-income students or significant teacher shortages. All funds will be available immediately, flowing through the states, and available until expended.
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 teachers of color. These programs are proven tools to improve both student outcomesand teacher retention by providing new teachers with the support they need. The President’s plan will also leverage teachers as leaders of other key priorities within their school buildings, and compensate teachers for this work, recognizing the incredible expertise of our veteran educators, and their value in supporting the next generation of great teachers.
PROVIDE DIRECT SUPPORT TO CHILDREN AND FAMILIES
The hope of a middle-class life has gotten further and further out of reach for too many American families, as the costs of raising children – from child care to taking paid leave time to care for a new child or when a child is ill – have grown. Middle-class families and those trying to break into the middle class increasingly feel the strain of these rising costs, while wage growth has failed to keep up. These rising costs impact our economy as a whole as well. In part due to the lack of family friendly policies, the United States has fallen behind its competitors in female labor force participation. One study found that a lack of child care options costs the United States economy $57 billion per year in lost earnings, productivity, and revenue. Another study found that lack of paid leave options cost workers $22.5 billion each year in lost wages.
The high cost of child care continues to make it hard for parents – especially women — to work outside the home and provide for their families. Difficulty in finding high-quality, affordable child care leads some parents to drop out of the labor force entirely, some to reduce their work hours, and others to turn down a promotion. When a parent drops out of the workforce, reduces hours, or takes a lower-paying job early in their careers—even temporarily—there are lifetime consequences on earnings, savings, and retirement. These costs are especially significant for mothers and people of color, exacerbating inequality and harming the economic security of their families, as 91 percent of the income gains experienced by middle-class families over the last forty years were driven by women’s earnings.
High-quality early care and education lay a strong foundation so that children can take full advantage of education and training opportunities later in life. The evidence is clear: for early years, quality care is education. This especially important for children from low-income families, who too often start school without access to high-quality educational opportunities. A study by Nobel Laureate James Heckman found that every dollar invested in a high-quality, 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, were less likely to be involved in crime, and earned more as adults.
Building on the American Jobs Plan’s investments in school and child care infrastructure and workforce training, President Biden’s American Families Plan will ensure low and middle-income families pay no more than 7 percent of their income on high-quality child care, saving the average family $14,800 per year on child care expenses, while also generating lifetime benefits for three million children, supporting hundreds of thousands of child care providers and workers, allowing roughly one million parents, primarily mothers, to enter the labor force, and significantly bolstering inclusive and equitable economic growth. Specifically, President Biden’s plan will invest $225 billion to:
Make care affordable. 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 pay no more than 7 percent of their income. The plan will also provide families with a range of options to choose from for their child, from child care centers to family child care providers, Early Head Start, and public schools that are inclusive and accessible to all children.
Invest in high-quality care. Child care providers will receive funding to cover the true cost of quality early childhood care and education–including a developmentally appropriate curriculum, small class sizes, and culturally and linguistically responsive environments that are inclusive of children with disabilities. These investments support positive interactions that promote children’s social-emotional and cognitive development.
Invest in the care workforce. More investment is needed to support early childhood care 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 and nearly half receive 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. This investment will mean a $15 minimum wage for early childhood staff and ensure that those with similar qualifications as kindergarten teachers receive comparable compensation and benefits. And, it will ensure child care workers receive job-embedded coaching and professional development, along with additional training opportunities funded by the American Jobs Plan and American Families Plan. These investments will lead to better quality care, while also enabling these workers to care for their own families, reducing government spending on income support programs and increasing tax revenues. The Families Plan will also invest in maternal health and support the families of veterans receiving health care services.
The United States has fallen behind our economic competitors in the number of women participating in the labor force. The pandemic has exacerbated this problem, pushing millions of people—especially women—out of the workforce, eroding more than 30 years of progress in women’s labor force participation and resulting in a $64 billion loss in wages and economic activity per year. A lack of family-friendly policies, such as paid family and medical leave for when a worker need time to care for a new child, a seriously ill family member, or recover from their own serious illness, has been identified as a key reason for the U.S. decline in competitiveness. The United States is one of the only countries in the world that doesn’t guarantee paid leave. Nearly one in four mothers return to work within two weeks of giving birth and one in five retirees left or were forced to leave the workforce earlier than planned to care for an ill family member. Further, today nearly four of five private sector workers have no access to paid leave. 95 percent of the lowest wage workers, mostly women and workers of color, lack any access to paid family leave.
Paid family and medical leave supports workers and families and is a critical investment in the strength and equity of our economy. 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.
President Biden’s paid leave plan has broad benefits for working families and the economy as a whole. Studies have shown that, under state paid leave laws, new mothers are 18 percentage points more likely to be working a year after the birth of their child. In addition, paid leave can 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. Over 30 million workers, including 67 percent of low-wage workers, do not have access to a single paid sick day. Low-wage and part-time workers, a majority of whom are women, are less likely to have access to paid sick days.
The COVID pandemic has highlighted the need for a national paid sick leave policy, to help workers and their loved ones quickly recover from short-term illness and prevent the spread of disease. Therefore, the President calls upon Congress to pass the Healthy Families Act which will require employers to allow workers to accrue seven days paid sick leave per year to seek preventative care for them or their family– such as getting a flu shot, recovering from short-term illness, or caring for a sick child or family member or a family member with disability-related needs.
The pandemic has added urgency to the issue of nutrition insecurity, which disproportionately affects low-income families and families 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. Today, one-fifth of American children are obese, and research shows that childhood obesity increases the likelihood of obesity in adulthood. In addition to the incredible financial burden on the health care system, diet-related diseases carry significant economic and national security implications by decreasing work productivity, increasing job absenteeism, and threatening military readiness. A recent study found that U.S. children are getting their healthiest meals at school, demonstrating that school meals are one of the federal government’s most powerful tools for delivering nutrition security to children. To ensure the nutritional needs of families are met, President Biden’s plan will invest $45 billion to:
Expand summer EBT to all eligible children nationwide. The Summer EBT Demonstrations helps low-income families with children eligible for free and reduced-price meals during the school year purchase food during the summer. Research shows that this program decreases food insecurity among children and has led to positive changes in nutritional outcomes. The American Families Plan builds on the American Rescue Plan’s support for Summer Pandemic-EBT by investing more than $25 billion to make the successful program permanent and available to all 29 million children receiving free and reduced-price meals.
Expand school meal programs. The Community Eligibility Provision (CEP) allows high-poverty schools to provide meals free of charge to all of their students. It is currently available to individual schools, groups of schools within a district, or an entire district with at least 40 percent of students participating in the Supplemental Nutrition Assistance Program (SNAP). The program is particularly important because some families whose children would be eligible for free meals may not apply for them due to stigma or not fully understanding the application process. In addition, other families in high-poverty schools may still be facing food insecurity but make just enough to not qualify for free school meals. However, only 70 percent of eligible schools have adopted CEP, because some schools would receive reimbursement below the free meal rate. The President’s plan will fund $17 billion to expand free meals for children in the highest poverty districts (those with at least 40 percent of students participating in SNAP) by reimbursing a higher percentage of meals at the free reimbursement rate through CEP. Additionally, the plan will expand free meals for children in 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 to 25 percent of students participating in SNAP. Targeting elementary students will drive better long-term health outcomes by ensuring low-income children are receiving nutritious meals at an early age. The plan will also expand direct certification to automatically enroll more students for school means based on Medicaid and Supplemental Security Income data. This proposal will provide free meals to an additional 9.3 million children, with about 70 percent in elementary schools.
Launch a healthy foods incentive demonstration. To build on progress made during the Obama Administration to improve the nutrition standards of school meals, this new $1 billion demonstration will support schools that are further expanding healthy food offerings. For example, schools adopting specified measures that exceed current school meal standards will receive an enhanced reimbursement as an incentive.
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.
UNEMPLOYMENT INSURANCE REFORM
The unemployment insurance (UI) system is a critical lifeline to workers at the hardest times. During the pandemic, it saved millions from poverty and helped people put food on the table. But, the system is in desperate need of reform and strengthening. Too often Americans found themselves waiting weeks to get the benefits they deserved. Too often the benefits Americans would automatically receive would’ve been too low and would not have gone long enough absent Congress stepping in. Too often the safeguards to prevent fraud in the system have been insufficient. And it has been unemployed people of color who have borne the brunt of the UI system’s weaknesses. President Biden is committed to strengthening and reforming the system for the long term. That’s why he won $2 billion in the American Rescue Plan to put toward UI system modernization, equitable access, and fraud prevention. And, that’s why he wants to work with Congress to automatically adjust the length and amount of UI benefits unemployed workers receive depending on economic conditions. This will ensure future legislative delay doesn’t undermine economic recovery and it will enable permanent reform of the system to provide the safety net that workers deserve in the hardest times.
TAX CUTS FOR AMERICA’S 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. But if Congress does not act, millions of American families and workers will see their taxes go up at the end of the year.
President Biden believes we must extend the American Rescue Plan’s expanded tax credits that lifted millions of children out of poverty, made it easier for families to afford child care, and ensured that low-income workers without children would not continue to be taxed into poverty.
Specifically, President Biden’s 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 American Rescue Plan included a historic investment in reducing Americans’ health care costs. 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, saving families an average of $50 per person per month. 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 increases in the American Rescue Plan through 2025 and make the Child Tax Credit 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 for 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 benefited nearly 66 million children, and it was the single largest contributor to the plan’s historic reductions in child poverty.
For a family with two parents earning a combined $100,000 per year and two children under six, the Child Tax Credit expansion means an additional $3,200 per year in tax relief. For a family with two parents earning a combined $24,000 per year and two children under six, the expansion means even more, with a credit increase of than $4,400 because the full credit was not previously fully available to them.
The credit would also be delivered regularly. This means that families will not need to wait until tax season to receive a refund. Instead, they will receive regular payments that allow them to cover household expenses as they arise.
The American Families Plan will make permanent the full refundability of the Child Tax Credit, while extending the other expansions to the Child Tax Credit through 2025—when the 2017 law’s individual provisions expire. The President is committed to working with Congress to achieve his ultimate goal of making permanent the Child Tax Credit as well as all of the expansions he signed into law in the American Rescue Plan.
Permanently increase tax credits to support families with child care needs. To help families afford child care, 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 receive a tax credit for as much as half of their spending on qualified child care for children under age 13, up to a total of $4,000 for one child or $8,000 for two or more children. A 50 percent reimbursement will be available to families making less than $125,000 a year, while families making between $125,000 and $400,000 will receive a partial credit with benefits at least as generous as those they receive today. The credit can be used for expenses ranging from full-time care to after school care to summer care.
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. If Congress fails extend the CDCTC expansion, more than 6 million families could see their taxes go up at the end of the year – many by thousands of dollars – making obtaining affordable child care more difficult. Importantly, this tax credit works in tandem with the American Families Plan’s direct investments in childcare affordability for families with young children.
Make the Earned Income Tax Credit Expansion for childless workers permanent. 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. 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.
Give IRS the authority to regulate paid tax preparers. Tax returns prepared by certain types of preparers have high error rates. These preparers charge taxpayers large fees while exposing them to costly audits. As preparers play a crucial role in tax administration, and will be key to helping many taxpayers claim the newly-expanded credits, IRS oversight of tax preparers is needed. The President is calling on Congress to pass bipartisan legislation that will give the IRS that authority.
TAX REFORM THAT REWARDS WORK – NOT WEALTH
The President’s tax agenda will not only reverse the biggest 2017 tax law giveaways, but reform the tax code so that the wealthy have to play by the same rules as everyone else. It will ensure that high-income Americans pay the tax they owe under the law—ending the unfair system of enforcement that collects almost all taxes due on wages, while regularly collecting a smaller share of business and capital income. The plan will also eliminate long-standing loopholes, including lower taxes on capital gains and dividends for the wealthy, that reward wealth over work. Importantly, these reforms will also rein in the ways that the tax code widens racial disparities in income and wealth.
President Biden’s plan uses the resulting revenue to rebuild the middle class, investing in education and boosting wages. It will also give tax relief to middle-class families, dramatically reducing child poverty and cutting the cost of child care in half for many families. The result of the President’s individual tax reforms will be a tax code with fewer loopholes for the wealthy and more opportunity for low- and middle-income Americans.
Altogether, these tax reforms focused on the highest income Americans would raise about $1.5 trillion across the decade. In combination with the American Jobs Plan, which produces long-term deficit reduction through corporate tax reform, all of the investments would be fully paid for over the next 15 years.
President Biden’s plan will:
Revitalize enforcement to make the wealthy pay what they owe. We have a two-tiered system of tax administration in this country: regular workers pay the taxes they owe on wages and salaries while some wealthy taxpayers aggressively plan to avoid the tax laws. Those with the highest incomes generate income in opaque categories where misreporting rates can reach 55 percent. A recent study found that the top one percent failed to report 20 percent of their income and failed to pay over $175 billion in taxes that they owed. But today, the IRS does not even have the resources to fully investigate this evasion. As a result of budget cuts, audit rates on those making over $1 million per year fell by80 percent between 2011-2018.
The President’s proposal would change the game—by making sure the wealthiest Americans play by the same set of rules as all other Americans.It would require financial institutions to report information on account flows so that earnings from investments and business activity are subject to reporting more like wages already are.It would also increase investment in the IRS, while ensuring that the additional resources go toward enforcement against those with the highest incomes, rather than Americans with actual income less than $400,000. Additional resources would focus on large corporations, businesses, and estates, and higher-income individuals. Altogether, this plan would raise $700 billion over 10 years.
Increase the top tax rate on the wealthiest Americans to 39.6 percent. One of the 2017 tax cut’s clearest giveaways to the wealthy was cutting the top income tax rate from 39.6 percent to 37 percent, exclusively benefitting the wealthiest households—those in the top one percent. This rate cut alone gives a couple with $2 million in taxable an annual tax cut of more than $36,400. The President’s plan restores the top tax bracket to what it was before the 2017 law, returning the rate to 39.6 percent, applying only to those within the top one percent.
End capital income tax breaks and other loopholes for the very top. The President’s tax reform will end one of the most unfair aspects of our tax system: that the tax rate the wealthy pay on capital gains and dividends is less than the tax rate that many middle-class families pay on their wages. Households making over $1 million—the top 0.3 percent of all households—will pay the same 39.6 percent rate on all their income, equalizing the rate paid on investment returns and wages. Moreover, the President would eliminate the loophole that allows the wealthiest Americans to entirely escape tax on their wealth by passing it down to heirs. Today, our tax laws allow these accumulated gains to be passed down across generations untaxed, exacerbating inequality. The President’s plan will close this loophole, ending the practice of “stepping-up” the basis for gains in excess of $1 million ($2.5 million per couple when combined with existing real estate exemptions) and making sure the gains are taxed if the property is not donated to charity. The reform will be designed with protections so that family-owned businesses and farms will not have to pay taxes when given to heirs who continue to run the business. Without these changes, billions in capital income would continue to escape taxation entirely.
The President is also calling on Congress to close the carried interest loophole so that hedge fund partners will pay ordinary income rates on their income just like every other worker. While equalizing tax rates on wages and capital gains will address this disparity, permanently eliminating carried interest is an important structural change that is necessary to ensure that we have a tax code that treats all workers fairly. The President would also end the special real estate tax break—that allows real estate investors to defer taxation when they exchange property—for gains greater than $500,000, and the President would also permanently extend the current limitation in place that restricts large, excess business losses, 80 percent of which benefits those making over $1 million.
Finally, high-income workers and investors generally pay a 3.8 percent Medicare tax on their earnings, but the application is inconsistent across taxpayers due to holes in the law. The President’s tax reform would apply the taxes consistently to those making over $400,000, ensuring that all high-income Americans pay the same Medicare taxes.
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The Biden Administration has recognized that the availability of affordable child care is the essential grease to the economy’s gears. The White House has issued a fact sheet detailing $39 billion in American Rescue Plan funding “to rescue the child care industry so the economy can recover”:
Today, the Biden Administration is announcing the release of $39 billion of American Rescue Plan funds to states, territories, and tribes to address the child care crisis caused by COVID-19. These funds will help early childhood educators and family child care providers keep their doors open. These providers have been on the frontlines caring for the children of essential workers and support parents, especially mothers, who want to get back to work. These funds are a critical step to pave the way for a strong economic recovery and a more equitable future.
Over the past 40 years, as more women entered the labor force and brought home larger paychecks, they have driven 91 percent of the income gains experienced by middle-class families. But, since the start of the COVID-19 public health emergency, roughly 2 million women have left the labor force, disproportionately due to caregiving needs and undoing decades of progress improving women’s labor force participation rate. Even as many fathers have returned to work, mothers, especially those without a four-year college degree, have not done so at similar rates. As a result, the gender earnings gap is predicted to increase by 5 percentage points in this recession, hurting our families and economy. As women work to regain employment, families with young children, and especially families of color where mothers are more likely to be sole or primary breadwinners, may face financial burdens for years to come. Parents need access to safe, quality child care to get back to work.
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 and are struggling to continue to provide essential services. Providers have faced decreasing revenues due to lower enrollment while also shouldering higher expenses – 47 percent higher by one estimate – for personal protective equipment (PPE), sanitation, additional staff, and other needs to operate safely. They were already operating on extremely thin margins before 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. These closures exacerbated access challenges that existed before the pandemic when half of all Americans lived in a child care desert. Child care providers who have stayed open have gone to enormous lengths to do so: 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. One in six child care jobs, generally held by women of color, still haven’t come back – much more than the one in twenty jobs that have been lost throughout the economy.
That is why President Biden prioritized addressing the child care crisis caused by COVID-19 as part of the American Rescue Plan. Today’s $39 billion funding release will provide a lifeline to hundreds of thousands of childcare providers and early childhood educators, provide a safe and healthy learning environment for more than 5 million children, and help parents, especially mothers, get back to work. States, tribes, and territories can use these funds to:
Help hundreds of thousands child care centers and family child care providers, which are mostly very small businesses, stay open or reopen including by making rent or mortgage payments, helping with utility or insurance bills, maintaining or improving facilities, and paying off debt incurred during the pandemic.
Support providers with funds to enable safe and healthy learning environments for more than 5 million of children, including by purchasing masks, implementing physical distancing, improving ventilation, and cleaning consistently, so both centers and family providers can comply with CDC’s Guidance for Operating Child Care Programs during COVID-19. This funding complements the President’s efforts to prioritize early childhood educators for vaccination – child care workers remain eligible for vaccinations and nearly 80 percent of the educators who work with children from birth to 12th grade received at least their first shot of a COVID-19 vaccine during the month of March. Providers can also use these funds to support the mental health of both children and early educators so that they can meet any social and emotional needs exacerbated by the pandemic as centers reopen and parents go back to work.
Keep child care workers, disproportionately women of color and immigrants, on the payroll and rehire those who have been laid off. Child care workers are essential to meeting the child care needs of families and providing quality are to children, but providers have been forced to lay off, furlough, or reduce pay of workers to survive – exacerbating issues faced by a workforce that has long faced low pay and high turnover. Providers can use these funds to keep workers on payroll, rehire laid off workers and recruit new workers, and increase the pay and benefits of child care workers and family child care providers.
Provide families with the greatest need access to affordable care. States, tribes, and territories can provide direct subsidies to more than 800,000 hard-pressed families earning below 85% state median income and families performing essential work, to help cover the cost of care.
Start to lay the foundation for a stronger child care system, so families can access the high-quality care they need. As states, tribes, and territories address the immediate crisis, they can also make a down payment on President Biden’s commitment to a stronger, more equitable early childhood education system. For example, states, tribes, and territories can set reimbursement rates at a level that will help children receive high-quality care and can increase access to care, including on the evenings and weekends when many essential workers need care.
The American Rescue Plan also included an historic increase in support for child care through the tax code, helping millions of working families afford needed care. Last year, a family claiming a Child and Dependent Care Tax Credit (CDCTC) got less than $700 on average towards the cost of care, and many low-income working families often got nothing. Thanks to the historic expansion of the CDCTC in the American Recovery Plan, a median income family with two kids under age 13 will receive up to $8,000 towards their child care expenses when they file taxes for 2021, compared with a maximum of $1,200 previously.
In 2020, the CDCTC provides a tax credit typically capped at $600 for one child, for families with at least $3,000 in eligible expenses, and capped at $1,200 for two children or more for families with at least $6,000 in child care expenses.
Under the American Rescue Plan’s expansion of the CDCTC, all families with incomes below $125,000 will save up to half the cost of their eligible child care expenses, getting back up to $4,000 for one child and $8,000 for two or more children, when they file taxes for 2021. And, families making between $125,000 and $438,000 can receive a partial credit.
And for the first time, the CDCTC will be fully refundable, making the credit fairer 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 on their 2021 taxes.
In the coming weeks, the administration will release:
Guidance to states, tribes, and territories, while also providing technical assistance like webinars and peer-to-peer learning opportunities, to support states, tribes, and territories as they make historic investments in saving and rebuilding their child care systems, provide high-quality care to children, and get families back to work.
Frequently Asked Questions on the Child and Dependent Care Tax Credit to equip parents with the information they need to claim the credit next year.
Help from the American Rescue Plan is coming to states, territories, and tribes. The $39 billion will be provided through two funds: (1) $24 billion in child care stabilization funding for child care providers to reopen or stay open, provide safe and healthy learning environments, keep workers on payroll, and provide mental health supports for educators and children, and (2) $15 billion in more flexible funding for states to make child care more affordable for more families, increase access to high-quality care for families receiving subsidies, increase compensation for early childhood workers, and meet other care needs in their states. A breakdown by state, tribe and territory is below.
President Joe Biden signed an Executive Order to help create more resilient and secure supply chains for critical and essential goods.
In recent years, American households, workers, and companies have increasingly felt the strain of shortages of essential products—from medicine to food to computer chips. Last year’s shortages of personal protective equipment (PPE) for front-line healthcare workers at the beginning of the COVID-19 pandemic were unacceptable. Recent shortages of automotive semiconductor chips have forced slowdowns at car manufacturing plants, highlighting how shortages can hurt U.S. workers.
While we cannot predict what crisis will hit us, we should have the capacity to respond quickly in the face of challenges. The United States must ensure that production shortages, trade disruptions, natural disasters and potential actions by foreign competitors and adversaries never leave the United States vulnerable again. Today’s action delivers on the President’s campaign commitment to direct his Administration to comprehensively address supply chain risks. The task of making our supply chains more secure can also be a source of well paid jobs for communities across our country, including in communities of color, and steps will be taken to ensure that the benefits of this work flow to all Americans.
The Executive Order launches a comprehensive review of U.S. supply chains and directs federal Departments and Agencies to identify ways to secure U.S. supply chains against a wide range of risks and vulnerabilities. Building resilient supply chains will protect the United States from facing shortages of critical products. It will also facilitate needed investments to maintain America’s competitive edge, and strengthen U.S. national security.
Here are President Biden’s remarks before the signing of the executive order:
The Vice President and I had a very productive meeting with a bipartisan group of senators and House members to address an issue of both concern to our economic security, as well as our national security: the resilience and reliability of our critical supply chains.
This is a critical area where Republicans and Democrats agreed it was one of the best meetings — it’s the best meeting I think we’ve had so far, although we’ve only been here about five weeks. But it was like the old days — people actually are on the same page.
Good, bipartisan work has already been done. The leaders of this operation in the House and Senate already have done great work, and I want to thank them for their leadership.
We’re here to build on that. And the bottom line is simple: The American people should never face shortages in the goods and services they rely on, whether that’s their car or their prescription medicines or the food at the local grocery store.
And remember, the shortages in PPE during this pandemic –that meant we didn’t have the masks; we didn’t have gowns or gloves to protect our frontline health workers.
We heard horror stories of doctors and nurses wearing trash bags over their gown — over their dress in order to — so they wouldn’t be in trouble, because they had no gowns. And they were rewashing and reusing their masks over and over again in the OR.
That should never have never happened. And this will never happen again in the United States, period. We shouldn’t have to rely on a foreign country — especially one that doesn’t share our interests or our values — in order to protect and provide our people during a national emergency.
That’s why one of the first executive orders I signed, as some may remember, was to ensure that we’re manufacturing more protective equipment for healthcare workers here at home.
And today, I’m shortly going to be signing another executive order that’ll help address the vulnerabilities in our supply chains across additional critical sectors of our economy so that the American people are prepared to withstand any crisis and rely on ourselves.
This is about making sure the United States can meet every challenge we face in this new era — pandemics, but also in defense, cybersecurity, climate change, and so much more. And the best way to do that is by protecting and sharpening America’s competitive edge by investing here at home. As I’ve said from the beginning, while I was running: We’re going to invest in America. We’re going to invest in American workers. And then we can be in a much better position to even compete beyond what we’re doing now.
Resilient, diverse, and secure supply chains are going to help revitalize our domestic manufacturing capacity and create good-paying jobs, not $15 an hour — which is what we need to do someday. And sooner is better, in my view. But jobs that are at the prevailing wage.
We’re going to spare new — spur new opportunities for small businesses, communities of color, and economically distressed areas. And I will drive new investment in research and innovation and our workforce, investing in training and university partnerships that are going to lead to new technologies and new solutions.
And all this won’t just strengthen our domestic capacity, it will help unleash new markets around the world and grow opportunities for American businesses to export their goods that we’re going to be making.
These are the kinds of commonsense solutions that all Americans can get behind — workers and corporate leaders, Republicans and Democrats. It’s about resilience, identifying possible points of vulnerabilities in our supply chains, and making sure we have the backup alternatives or workarounds in place.
Remember that old proverb: “For want of a nail, the shoe was lost. For want of a shoe, the horse was lost.” And it goes on and on until the kingdom was lost, all for the want of a horseshoe nail. Even small failures at one point in the supply chain can cause outside impacts further up the chain.
Recently, we’ve seen how a shortage of computer chips — computer chips like the one I have here — you can hardly see it I imagine; it’s called a “semiconductor” — has caused delays in production of automobiles that has resulted in reduced hours for American workers. A 21st century horseshoe nail.
This semiconductor is smaller than a postage stamp, but it has more than 8 billion transistors — 8 billion transistors, 10,000 times thinner than a single human hair in this one chip. These chips are a wonder of innovation and design that powers so much of our country, enables so much of our modern lives to go on — not just our cars, but our smartphones, televisions, radios, medical diagnostic equipment, and so much more.
We need to make sure these supply chains are secure and reliable. I’m directing senior officials in my administration to work with industrial leaders to identify solutions to this semiconductor shortfall and work very hard with the House and Senate. They’ve authorized the bill, but they need (inaudible) $37 billion, short term, to make sure we have this capacity. We’ll push for that as well. But we all recognize that the particular problem won’t be solved immediately.
In the meantime, we’re reaching out to our allies, semiconductor companies, and others in the supply chain to ramp up production to help us resolve the bottlenecks we face now. We need help to stop — we need to stop playing catch up after the supply-chain crisis hit. We need to prevent the supply chain crisis from hitting in the first place.
And in some cases, building resilience will mean increasing our production of certain types of elements here at home. In others, it’ll mean working more closely with our trusted friends and partners, nations that share our values, so that our supply chains can’t be used against us as leverage.
It will mean identifying and building surge capacity that can quickly be turned into and ramped up production in times of emergency. And it will mean investing in research and development, like we did in the ’60s, to ensure long-term competi- — competitiveness in our manufacturing base in the decades ahead.
The order I’m about to sign does two things. First, it orders a 100-day review of four vital products: semiconductors — one; key minerals and materials, like rare earths, that are used to make everything from harder steel to airplanes; three, pharmaceuticals and their ingredients; four, advanced batteries, like the ones used in electric vehicles.
There’s strong bipartisan support for fast reviews of these four areas because they’re essential to protecting and strengthening American competitiveness.
Second, this order initiates a long-term review of the industry basis of six sectors of our overall economy over the next year. These reviews will identify policy recommendations to fortify our supply chains at every step, and critically, to start implementing those recommendations right away. We’re not going to wait for a review to be completed before we start closing the existing gaps.
And as we implement this work, my administration will draw on a full range of American talent — including labor and industry leaders, policy experts, scientists, farmers, engineers — to get their input.
I’m grateful for the members of Congress who came to see me — Republican leaders, as well as Democrats. They’re leading the way. We’re going to stay in close contact with members of both sides of the aisle and keep advancing our shared goals.
Everyone has a role to play to strengthen our supply chains in our — and our country. This is the United States of America. We are better prepared to meet the challenges of the 21st century than any country in the world. There’s nothing, nothing, nothing we’ve ever failed to achieve if we work together. And that’s what we decided to do today, and that’s what we’re going to do: work together.
So I thank you all. I’m very optimistic about the meeting we had today with our congressional colleagues. And now I’m going to walk over and sign that executive order.
First, the order directs an immediate 100-day review across federal agencies to address vulnerabilities in the supply chains of four key products.
Pharmaceuticals and active pharmaceutical agreements (APIs). APIs are the part of a pharmaceutical product that contains the active drug. In recent decades, more than 70 percent of API production facilitators supplying the U.S. have moved offshore. This work will complement the ongoing work to secure supply chains needed to combat the COVID-19 pandemic.
Critical minerals, including rare earths. Critical minerals are an essential part of defense, high-tech, and other products. From rare earths in our electric motors and generators to the carbon fiber used for airplanes—the United States needs to ensure we are not dependent upon foreign sources or single points of failure in times of national emergency.
Semiconductors and Advanced Packaging. The United States is the birthplace of this technology, and has always been a leader in semiconductor development. However, over the years we have underinvested in production—hurting our innovative edge—while other countries have learned from our example and increased their investments in the industry.
Large capacity batteries, such as those used in electric vehicles: As we take action to tackle the climate crisis, we know that will lead to large demand for new energy technologies like electric vehicle batteries. By identifying supply chain risks, we can meet the President’s commitment to accelerate U.S. leadership of clean energy technologies. For example, while the U.S. is a net exporter of electric vehicles, we are not a leader in the supply chain associated with electric battery production. The U.S. could better leverage our sizeable lithium reserves and manufacturing know-how to expand domestic battery production.
The 100-day review will identify near term steps the administration can take, including with Congress, to address vulnerabilities in the supply chains for these critical goods.
Second, the order calls for a more in-depth one-year review of a broader set of U.S. supply chains. The one-year review will include:
A focus on six key sectors: the defense industrial base; the public health and biological preparedness industrial base; the information and communications technology (ICT) industrial base; the energy sector industrial base; the transportation industrial base; and supply chains for agricultural commodities and food production.
A set of risks for agencies to consider in their assessment of supply chain vulnerabilities: Agencies and Departments are directed to review a variety of risks to supply chains and industrial bases. For example, these reviews must identify critical goods and materials within supply chains, the manufacturing or other capabilities needed to produce those materials, as well as a variety of vulnerabilities created by failure to develop domestic capabilities. Agencies and Departments are also directed to identify locations of key manufacturing and production assets, the availability of substitutes or alternative sources for critical goods, the state of workforce skills and identified gaps for all sectors, and the role of transportation systems in supporting supply chains and industrial bases.
Recommendations on actions that should be taken to improve resiliency: Agencies are directed to make specific policy recommendations to address risks, as well as proposals for new research and development activities.
A sustained commitment to supply chain resiliency: The government will commit to a regular, ongoing process of reviewing supply chain resilience, including a quadrennial review process.
Consultation with external stakeholders: The government cannot secure supply chains on its own. It requires partnership and consultation with the American people. The E.O. directs the Administration to consult widely with outside stakeholders, such as those in industry, academia, non-governmental organizations, communities, labor unions, and State, local, territorial, and Tribal governments.
The E.O. will build on bipartisan Congressional action and leadership on this issue, and the Administration will remain in close touch with Congress to solicit recommendations during the review. President Biden has also directed his Administration to work with U.S. partners and allies to ensure that they too have strong and resilient supply chains.
President Biden has directed his Administration to ensure that the task of building resilient supply chains draws on the talent and work ethic of communities across America, including communities of color and cities and towns that have for too long suffered from job losses and industrial decline. As the Administration implements the Executive Order, it will identify opportunities to implement policies to secure supply chains that grow the American economy, increase wages, benefit small businesses and historically disadvantaged communities, strengthen pandemic and biopreparedness, support the fight against global climate change, and maintain America’s technological leadership in key sectors.
Emergency Legislative Package to Fund Vaccinations, Provide Immediate, Direct Relief to Families Bearing the Brunt of the COVID-19 Crisis, and Support Struggling Communities
The COVID-19 pandemic and the corresponding economic crisis are devastating families across the country. More than 20 million Americans have contracted COVID-19, and at least 370,000 have died. From big cities to small towns, too many Americans are barely scraping by, or not scraping by at all. And the pandemic has shined a light on the persistence of racial injustice in our healthcare system and our economy. The need to act is clear in the lines at food banks, the small businesses that are closed or closing, and the growing number of Americans experiencing housing insecurity. After nearly a year of the public health crisis, our nation remains in this dark winter of the pandemic and facing a deep economic crisis.
President-elect Biden is laying out the first step of an aggressive, two-step plan for rescue, from the depths of this crisis, and recovery, by investing in America, creating millions of additional good-paying jobs, combatting the climate crisis, advancing racial equity, and building back better than before.
While Congress’s bipartisan action in December was a step in the right direction, it was only a down payment. It fell far short of the resources needed to tackle the immediate crisis. We are in a race against time, and absent additional government assistance, the economic and public health crises could worsen in the months ahead; schools will not be able to safely reopen; and vaccinations will remain far too slow.
As last month’s jobs report underscored, the virus and our economy are intertwined. We cannot rescue our economy without containing this virus.
Today, President-elect Biden is announcing the American Rescue Plan to change the course of the pandemic, build a bridge towards economic recovery, and invest in racial justice. The American Rescue Plan will address the stark, intergenerational inequities that have worsened in the wake of COVID-19. Researchers at Columbia University estimate that these proposals will cut child poverty in half.
Specifically, President-elect Biden’s American Rescue Plan will:
Mount a national vaccination program, contain COVID-19, and safely reopen schools, including by setting up community vaccination sites nationwide, scaling up testing and tracing, eliminating supply shortage problems, investing in high-quality treatments, providing paid sick leave to contain spread of the virus, addressing health disparities, and making the necessary investments to meet the president-elect’s goal of safely reopening a majority of K-8 schools in the first 100 days.
Deliver immediate relief to working families bearing the brunt of this crisis by sending $1,400 per-person checks to households across America, providing direct housing and nutrition assistance, expanding access to safe and reliable childcare and affordable healthcare, increasing the minimum wage, extending unemployment insurance, and giving families with kids and childless workers an emergency boost this year.
Support communities that are struggling in the wake of COVID-19 by providing support for the hardest-hit small businesses, especially small businesses owned by entrepreneurs of color, and protecting the jobs of the first responders, transit workers, and other essential workers we depend on.
In addition to addressing the public health and economic crises head on, the president-elect’s plan will provide emergency funding to upgrade federal information technology infrastructure and address the recent breaches of federal government data systems. This is an urgent national security issue that cannot wait.
President-elect Biden’s $1.9 trillion American Rescue Plan is ambitious, but achievable, and will rescue the American economy and start beating the virus. Congress should act expeditiously to help working families, communities, and small businesses persevere through the pandemic.
This legislative package is needed now to address the immediate crises. In the coming weeks, President-elect Biden will lay out his economic recovery plan to invest in America, create millions of additional good-paying jobs, combat the climate crisis, and build back better than before.
Mount a national vaccination program, contain COVID-19, and safely reopen schools
The pandemic is raging, with record high infection and death rates. A new strain of the virus that is even more contagious is appearing in communities across the country. Meanwhile, Americans are waiting to get their vaccines, even while doses are sitting on shelves. More than ten months into the pandemic, we still lack necessary testing capacity and are suffering from shortages of supplies like basic protective equipment for those on the front lines. Americans of color are being infected and are dying from COVID-19 at greater rates because of lasting systemic racism in our health care system. And, older Americans continue to suffer at disproportionate rates.
We can’t wait to slow the spread of this virus. And, we can’t fight this pandemic in fits and starts. President-elect Biden is putting forward a comprehensive plan to deal with this crisis and launch a whole-of-government COVID-19 response plan that will change the course of the pandemic by ensuring we have necessary supplies and protective gear, increasing testing to mitigate spread, vaccinating the US population, safely reopening schools, and addressing COVID-19 health disparities.
To support this plan, President-elect Biden is calling on Congress to provide the $160 billion in funding necessary to save American lives and execute on his plan to mount a national vaccination program, expand testing, mobilize a public health jobs program, and take other necessary steps to build capacity to fight the virus. He is also calling on Congress to ensure our schools have everything they need to safely reopen and to provide emergency paid leave so people can stay home when needed to help contain the spread of the virus. Altogether, this would put over $400 billion toward these critical measures for addressing COVID-19.
President-elect Biden’s rescue proposal will:
Mount a national vaccination program. Current vaccination efforts are not sufficient to quickly and equitably vaccinate the vast majority of the U.S. population. We must ensure that those on the ground have what they need to get vaccinations into people’s arms. The president-elect’s proposal will invest $20 billion in a national vaccination program in partnership with states, localities, Tribes and territories. This will include launching community vaccination centers around the country and deploying mobile vaccination units to hard-to-reach areas. The Biden Administration will take action to ensure all people in the United States — regardless of their immigration status — can access the vaccine free-of-charge and without cost-sharing. To help states ensure that all Medicaid enrollees will be vaccinated, President-elect Biden will also work with Congress to expand the Federal Medicaid Assistance Percentage (FMAP) to 100% for the administration of vaccines.
Scale up testing to stop the spread of COVID, safely reopen schools, and protect at-risk populations. While we are working to vaccinate the population, we need to focus on what we know works. Testing is a critical strategy for controlling the spread of COVID-19, yet the U.S. is still not using it effectively. Despite innovations to improve testing, tests are still not widely available. The president-elect’s plan invests $50 billion in a massive expansion of testing, providing funds for the purchase of rapid tests, investments to expand lab capacity, and support to help schools and local governments implement regular testing protocols. Expanded testing will ensure that schools can implement regular testing to support safe reopening; that vulnerable settings like prisons and long-term care facilities can regularly test their populations; and that any American can get a test for free when they need one.
Mobilize a public health jobs program to support COVID-19 response. The president-elect’s plan includes an historic investment in expanding the public health workforce. This proposal will fund 100,000 public health workers, nearly tripling the country’s community health roles. These individuals will be hired to work in their local communities to perform vital tasks like vaccine outreach and contact tracing in the near term, and to transition into community health roles to build our long-term public health capacity that will help improve quality of care and reduce hospitalization for low-income and underserved communities.
Address health disparities and COVID-19. While COVID-19 has devastated the entire country, it has hit some groups and communities of color much harder than others. President-elect Biden is committed to addressing the disparities evident in the pandemic at every step, from ensuring equitable distribution of vaccines and supplies to expanding health care services for underserved communities. His proposal includes funding to provide health services for underserved populations, including expanding Community Health Centers and investing in health services on tribal lands. These funds will support the expansion of COVID treatment and care, as well as our ability to provide vaccination to underserved populations.
Protect vulnerable populations in congregate settings. Long-term care residents and workers account for almost 40% of all U.S. COVID-19 deaths. Further, African-American and Latina women, who have borne the brunt of the pandemic, are overrepresented among long-term care workers. The president-elect’s proposal provides critical funding for states to deploy strike teams to long-term care facilities experiencing COVID-19 outbreaks — which may impede vaccination of residents and workers — and to conduct better infection control oversight.
1 in 5 state and federal prisoners in the U.S. has had COVID-19, and African Americans and Latinos are overrepresented among incarcerated individuals. The proposal also supports COVID-19 safety in federal, state, and local prisons, jails, and detention centers by providing funding for COVID-19 mitigation strategies, including supplies and physical distancing; safe re-entry for the formerly incarcerated; and the vaccination of both incarcerated people and staff.
Identify and address emerging strains of COVID-19. The identification of new strains of SARS-CoV-2 in the United Kingdom and South Africa highlight a key vulnerability in our nation’s COVID response: we simply do not have the kind of robust surveillance capabilities that we need to track outbreaks and mutations. Tracking the way the virus is changing and moving through the population is essential to understanding outbreaks, generating treatments and vaccines, and controlling the pandemic. The president-elect’s proposal includes funding to dramatically increase our country’s sequencing, surveillance, and outbreak analytics capacity at the levels demanded by the crisis.
Provide emergency relief and purchase critical supplies and deploy National Guard. Persistent supply shortages — from gloves and masks to glass vials and test reagents — are inhibiting our ability to provide testing and vaccination and putting frontline workers at risk. The president-elect’s plan will invest $30 billion into the Disaster Relief Fund to ensure sufficient supplies and protective gear, and to provide 100% federal reimbursement for critical emergency response resources to states, local governments, and Tribes, including deployment of the National Guard. The president-elect will call for an additional $10 billion investment in expanding domestic manufacturing for pandemic supplies. These funds will support President-elect Biden in fulfilling his commitment to fully use the Defense Production Act and to safeguard the country by producing more pandemic supplies in the U.S.
Invest in treatments for COVID-19. Months into this pandemic, we still do not have reliable and accessible treatments. The federal government urgently needs to invest to support development, manufacturing, and purchase of therapies to ensure wide availability and affordability of effective treatments, as well as invest in studies of the long-term health impacts of COVID-19 and potential therapies to address them.
Protect workers against COVID-19. Millions of Americans, many of whom are people of color, immigrants, and low-wage workers, continue to put their lives on the line to keep the country functioning through the pandemic. They should not have to lie awake at night wondering if they’ll make it home from work safely the next day, or if they’ll bring home the virus to their loved ones and communities. The president-elect is calling on Congress to authorize the Occupational Safety and Health Administration to issue a COVID-19 Protection Standard that covers a broad set of workers, so that workers not typically covered by OSHA, like many public workers on the frontlines, also receive protection from unsafe working conditions and retaliation. And, President-elect Biden is calling on Congress to provide additional funding for OSHA enforcement and grant funding, including for the Susan Harwood grant program, for organizations to help keep vulnerable workers healthy and safe from COVID-19. These steps will help keep more workers healthy, reopen more businesses safely, and beat the virus.
Restore U.S. leadership globally and build better preparedness. Protecting the United States from COVID-19 requires a global response, and the pandemic is a grave reminder that biological threats can pose catastrophic consequences to the United States and the world. The president-elect’s plan will provide support to the international health and humanitarian response; mitigate the pandemic’s devastating impact on global health, food security, and gender-based violence; support international efforts to develop and distribute medical countermeasures for COVID-19; and build the capacity required to fight COVID-19, its variants, and emerging biological threats.
Provide schools the resources they need to reopen safely. A critical plank of President-elect Biden’s COVID-19 plan is to safely reopen schools as soon as possible — so kids and educators can get back in class and parents can go back to work. This will require immediate, urgent action by Congress. The COVID-19 pandemic created unprecedented challenges for K-12 schools and institutions of higher education, and the students and parents they serve. School closures have disproportionately impacted the learning of Black and Hispanic students, as well as students with disabilities and English language learners. While the December down payment for schools and higher education institutions was a start, it is not sufficient to address the crisis. President-elect Biden is calling on Congress to provide $170 billion — supplemented by additional state and local relief resources — for K-12 schools and institutions of higher education. These resources will help schools serve all students, no matter where they are learning, and help achieve President-elect Biden’s goal to open the majority of K-8 schools within the first 100 days of his Administration.
Provide $130 billion to help schools to safely reopen. Schools need flexible resources to safely reopen and operate and/or facilitate remote learning. The president-elect’s plan will provide $130 billion to support schools in safely reopening. These funds can be used to reduce class sizes and modify spaces so students and teachers can socially distance; improve ventilation; hire more janitors and implement mitigation measures; provide personal protective equipment; ensure every school has access to a nurse; increase transportation capacity to facilitate social distancing on the bus; hire counselors to support students as they transition back to the classroom; close the digital divide that is exacerbating inequities during the pandemic; provide summer school or other support for students that will help make up lost learning time this year; create and expand community schools; and cover other costs needed to support safely reopening and support students. These funds will also include provisions to ensure states adequately fund education and protect students in low-income communities that have been hardest hit by COVID-19. Districts must ensure that funds are used to not only reopen schools, but also to meet students’ academic, mental health and social, and emotional needs in response to COVID-19, (e.g. through extended learning time, tutoring, and counselors), wherever they are learning. Funding can be used to prevent cuts to state pre-K programs. A portion of funding will be reserved for a COVID-19 Educational Equity Challenge Grant, which will support state, local and tribal governments in partnering with teachers, parents, and other stakeholders to advance equity- and evidence-based policies to respond to COVID-related educational challenges and give all students the support they need to succeed. In addition to this funding, schools will be able to access FEMA Disaster Relief Fund resources to get reimbursed for certain COVID-19 related expenses and will receive support to implement regular testing protocols.
Expand the Higher Education Emergency Relief Fund. The president-elect’s plan will ensure colleges have critical resources to implement public health protocols, execute distance learning plans, and provide emergency grants to students in need. This $35 billion in funding will be directed to public institutions, including community colleges, as well as, public and private Historically Black Colleges and Universities and other Minority Serving Institutions. This funding will provide millions of students up to an additional $1,700 in financial assistance from their college.
Hardest Hit Education Fund. Provide $5 billion in funds for governors to use to support educational programs and the learning needs of students significantly impacted by COVID-19, whether K-12, higher education, or early childhood education programs.
Provide emergency paid leave to 106 million more Americans to reduce the spread of the virus. No American should have to choose between putting food on the table and quarantining to prevent further spread of COVID-19. And yet, nearly 1 in 4 workers and close to half of low-income workers lack access to paid sick leave, disproportionately burdening Americans of color. Lack of paid leave is threatening the financial security of working families and increasing the risk of COVID-19 infections, hospitalizations, and deaths. Congress did the right thing last year when it created an emergency paid leave program through the Families First Coronavirus Response Act. That action decreased daily infections by 400 cases per state per day in states that previously had no paid sick leave requirement. While the December down payment extended the Families First employer tax credits through March 2021, it did not renew the requirement that employers provide leave. President-elect Biden is calling on Congress to:
Put the requirement back in place and eliminate exemptions for employers with more than 500 and less than 50 employees. He will also make it clear that healthcare workers and first responders get these benefits, too. Closing these loopholes in the Families First Coronavirus Response Act will extend emergency paid leave to up to 106 million additional workers.
Provide expanded paid sick and family and medical leave. The president-elect will provide over 14 weeks of paid sick and family and medical leave to help parents with additional caregiving responsibilities when a child or loved one’s school or care center is closed; for people who have or are caring for people with COVID-19 symptoms, or who are quarantining due to exposure; and for people needing to take time to get the vaccine.
Expand emergency paid leave to include federal workers. This measure will provide paid leave protections to approximately 2 million Americans who work for the federal government.
Provide a maximum paid leave benefit of $1,400 per-week for eligible workers. This will provide full wage replacement to workers earning up to $73,000 annually, more than three-quarters of all workers.
Reimburse employers with less than 500 employees for the cost of this leave. Extending the refundable tax credit will reimburse employers for 100 percent of the cost of this leave.
Reimburse state and local government for the cost of this leave.
Extend emergency paid leave measures until September 30, 2021. With so much uncertainty surrounding the pandemic, extending paid leave until the end of September will help to limit the spread of COVID-19 and provide economic security to millions of working families.
Deliver Immediate, Direct Relief to Families Bearing the Brunt of the Crisis.
As a result of the COVID-19 crisis, millions of Americans are hurting through no fault of their own. More than 10 million Americans are unemployed, and 4 million have been out of work for half a year or longer. The jobs crisis is particularly severe in communities of color, where 1 in 10 Black workers and 1 in 11 Latino workers are unemployed. Large numbers of families are struggling to pay rent or their mortgages and put food on the table. And, last month, it only got worse: we lost 140,000 jobs in December, including 20,000 public educators, and nearly 400,000 jobs at restaurants and bars.
President-elect Biden is calling on Congress to take urgent action to deliver immediate, direct relief to Americans bearing the brunt of this crisis. Altogether, this would devote about $1 trillion towards building a bridge to economic recovery for working families and, according to researchers at Columbia University, cut child poverty in half.
President-elect Biden’s plan will:
Give working families a $1,400 per-person check to help pay their bills, bringing their total relief payment from this and the December down payment to $2,000. More than 1 in 3 households — and half of Black and Latino households — are struggling to pay for usual household expenses like rent and groceries during the pandemic. In this crisis, working families need more than the $600 per person that Congress passed last year. President-elect Biden is calling on Congress to increase that direct financial assistance to $2,000. An additional $1,400 per person in direct checks will help hard-hit households cover expenses, spend money at local businesses in their communities, and stimulate the economy. President-elect Biden’s plan will also expand eligibility to adult dependents who have been left out of previous rounds of relief and all mixed status households. And, his plan will ensure that the Treasury Department has the flexibility and resources it needs to deliver stimulus checks to the families that need them most, including the millions of families that still haven’t received the $1,200 checks they are entitled to under the CARES Act.
Extend and expand unemployment insurance benefits so American workers can pay their bills. Around 18 million Americans rely on the unemployment insurance program. Congress did the right thing by continuing expanded eligibility and extending the number of weeks unemployed workers can receive benefits. One study estimates that extending pandemic unemployment insurance programs through 2021 could create or save over five million jobs. But these benefits are set to expire in weeks — even as the COVID-19 pandemic worsens. Millions of Americans are receiving benefits through unemployment insurance programs that will no longer serve new beneficiaries starting in mid-March.
President-elect Biden is calling on Congress to extend these and other programs, providing millions of hard-hit workers with the financial security and peace of mind they need and deserve. And, he believes Congress should provide a $400 per-week unemployment insurance supplement to help hard-hit workers cover household expenses. The president-elect is committed to providing these emergency supports to families for as long as the COVID-19 crisis continues and employment opportunities remain limited. The president-elect is proposing to extend these emergency unemployment insurance programs through September 2021, and will work with Congress on ways to automatically adjust the length and amount of relief depending on health and economic conditions so future legislative delay doesn’t undermine the recovery and families’ access to benefits they need.
President-elect Biden’s plan will:
Extend financial assistance for workers who have exhausted their regular unemployment compensation benefits. Extending and increasing the additional weeks provided under the emergency unemployment insurance program will ensure that approximately 5 million Americans continue to receive assistance in the months ahead.
Extend financial assistance for unemployed workers who do not typically qualify for unemployment compensation benefits. The president-elect believes Congress should extend unemployment support for self-employed workers, like ride-share drivers and many grocery delivery workers, who do not typically qualify for regular unemployment compensation. And, he supports increasing the number of weeks these workers can receive the benefit to provide long-term financial security to the program’s approximately 8 million beneficiaries.
Fully fund states’ short-time compensation programs and additional weeks of benefits. Short-time compensation programs, also known as work sharing, help small businesses stay afloat and economically vulnerable workers make ends meet by enabling workers to stay on the job at reduced hours, while making up the difference in pay. These programs avoid layoffs and pave the way for rapid rehiring and an accelerated recovery.
Help struggling households keep a roof over their heads. The economic fallout of COVID-19 has made it more difficult for working families, especially families of color, to cover their housing expenses. Across the country, 1 in 5 renters and 1 in 10 homeowners with a mortgage are behind on payments. Congress took an important step in the right direction by securing $25 billion in rental assistance and extending the federal eviction moratorium until January 31. However, American families already owe $25 billion in back rent, and the threat of widespread evictions will still exist at the end of January. Further, more than 10 million homeowners have fallen behind on mortgage payments. Failing to take additional action will lead to a wave of evictions and foreclosures in the coming months, overwhelming emergency shelter capacity and increasing the likelihood of COVID-19 infections. And Americans of color, who have on average a fraction of the wealth available to white families, face higher risks of eviction and housing loss without critical assistance.
President-elect Biden is calling on Congress to take immediate action to forestall a coming wave of COVID-related evictions and foreclosures.
Ensure that families hit hard by the economic crisis won’t face eviction or foreclosure. The president-elect is calling on Congress to extend the eviction and foreclosure moratoriums and continue applications for forbearance on federally-guaranteed mortgages until September 30, 2021. These measures will prevent untold economic hardship for homeowners, while limiting the spread of COVID-19 in our communities. The president-elect is also calling on Congress to provide funds for legal assistance for households facing eviction or foreclosure.
Help renters and small landlords make ends meet by providing an additional $30 billion in rental and critical energy and water assistance for hard-hit individuals and families. While the $25 billion allocated by Congress was an important down payment on the back rent accrued during this crisis, it is insufficient to meet the scale of the need. That’s why President-elect Biden is proposing an additional $25 billion in rental assistance to provide much-needed rental relief, especially for low- and moderate-income households who have lost jobs or are out of the labor market. The president-elect is also proposing $5 billion to cover home energy and water costs and arrears through programs like the Low Income Home Energy Assistance Program, for struggling renters. These funds will ensure that the hardest-hit renters and small landlords, including those in disadvantaged communities that have suffered disproportionately in terms of pollution and other environmental harms, aren’t put in the position where they can’t cover their own housing expenses. This program includes a competitive set-aside of funding for states to invest in clean energy and energy efficiency projects that reduce electricity bills for families in disadvantaged communities.
Deliver $5 billion in emergency assistance to help secure housing for people experiencing or at risk of homelessness. This funding will allow states and localities to help approximately 200,000 individuals and families obtain stable housing, while providing a downpayment on the president-elect’s comprehensive approach to ending homelessness and making housing a right for all Americans. Specifically, these funds will provide flexibility for both congregate and non-congregate housing options, help jurisdictions purchase and convert hotels and motels into permanent housing, and give homeless services providers the resources they need to hire and retain staff, maintain outreach programs, and provide essential services.
Address the growing hunger crisis in America. About 1 in 7 households nationwide, including more than 1 in 5 Black and Latino households and many Asian American and Pacific Islander households, are struggling to secure the food they need. While the December down payment provided $13 billion to strengthen and expand federal nutrition programs, it will not solve the hunger crisis in America. President-elect Biden is calling on Congress to ensure all Americans, regardless of background, have access to healthy, affordable groceries. The president-elect’s plan will:
Extend the 15 percent Supplemental Nutrition Assistance Program (SNAP) benefit increase. Maintaining the increase through the summer — when childhood hunger spikes due to a lack of school meals — is a critical backstop against rising food insecurity. This change will help keep hunger at bay for around 40 million Americans. The president-elect is calling for this to be extended through September 2021. He is also committed to providing this boost for as long as the COVID-19 crisis continues, and will work with Congress on ways to automatically adjust the length and amount of relief depending on health and economic conditions so future legislative delay doesn’t undermine the recovery and families’ access to benefits they need.
Invest $3 billion to help women, infants and children get the food they need. This multi-year investment in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is needed to account for increased enrollment due to growing hunger and to increase outreach to ensure that low-income families have access to high-quality nutritious food and nutrition education.
Partner with restaurants to feed American families and keep restaurant workers on the job at the same time. The FEMA Empowering Essential Deliveries (FEED) Act will leverage the resources and expertise of the restaurant industry to help get food to families who need it, and help get laid-off restaurant workers across the country back on the job.
Support SNAP by temporarily cutting the state match. The president-elect is calling for a one time emergency infusion of administrative support for state anti-hunger and nutrition programs to ensure that benefits get to the kids and families that need it most.
Provide U.S. Territories with $1 billion in additional nutrition assistance for their residents. Bolstering the Nutrition Assistance Program block grant will help thousands of working families in Puerto Rico, American Samoa, and the Commonwealth of the Northern Mariana Islands put food on the table for the duration of the pandemic.
Raise the minimum wage to $15 per hour. Throughout the pandemic, millions of American workers have put their lives on the line to keep their communities and country functioning, including the 40 percent of frontline workers who are people of color. As President-elect Biden has said, let’s not just praise them, let’s pay them. Hard working Americans deserve sufficient wages to put food on the table and keep a roof over their heads, without having to keep multiple jobs. But millions of working families are struggling to get by. This is why the president-elect is calling on Congress to raise the minimum wage to $15 per hour, and end the tipped minimum wage and sub-minimum wage for people with disabilities so that workers across the country can live a middle class life and provide opportunity for their families.
Call on employers to meet their obligations to frontline essential workers and provide back hazard pay. Essential workers — who are disproportionately Black, Latino, and Asian American and Pacific Islander — have risked their lives to stock shelves, harvest crops, and care for the sick during this crisis. They have kept the country running even during the darkest days of the pandemic. A number of large employers, especially in the retail and grocery sectors, have seen bumper profitability in 2020 and yet done little or nothing at all to compensate their workers for the risks they took. The president-elect believes these employers have a duty to do right by their frontline essential workers and acknowledge their sacrifices with generous back hazard pay for the risks they took across 2020 and up to today. He and the vice president-elect will call on CEOs and other business leaders to take action to meet these obligations.
Expand access to high-quality, affordable child care. We are facing an acute, immediate child care crisis in America, which is exacerbating our economic crisis. Due to increased costs and lower enrollment, a recent survey of child care providers showed that most child care providers expect that they will close within a few months without relief or are uncertain how long they can stay open. If left unaddressed, many child care providers will close — some permanently — and millions of children could go without necessary care, and millions of parents could be left to make devastating choices this winter between caring for their children and working to put food on the table. Early childcare providers are almost entirely women, among whom 40 percent are people of color, and so these closures could devastate engines of opportunity for minority- and women-owned businesses. President-elect Biden is calling on Congress to take immediate actions to address this crisis by helping child care centers reopen and remain open safely, and by making that care affordable to families who need it.
In addition, too many families are unable to afford child care, while early educators earn wages so low that they can’t support their own families. This challenge existed before COVID-19, and the pandemic has exacerbated it. President-elect Biden is calling on Congress to ease the financial burden of care for families, expand financial support for child care providers so that this critical sector can stay afloat during the pandemic and beyond, and make critical investments to improve wages and benefits for the essential child care sector. President-elect Biden’s plan will:
Help hard-hit child care providers, including family child care homes, cover their costs and operate safely by creating a $25 billion emergency stabilization fund. This Emergency Stabilization Fund will help hard-hit child care providers that are in danger of closing and provide support to nearly half of all child care providers. It will also assist those that have had to shut down meet their financial obligations during the pandemic, so that they can reopen. It will help providers pay for rent, utilities, and payroll, as well as increased costs associated with the pandemic including personal protective equipment, ventilation supplies, smaller group sizes, and modifications to make the physical environment safer for children and workers.
Expand child care assistance to help millions of families and help parents return to work. Millions of parents are risking their lives as essential workers, while at the same time struggling to obtain care for their children. Others have become 24/7 caregivers while simultaneously working remotely. Still more are unemployed, caring for their children full-time, and worrying about how they will make ends meet or afford child care when they do find a job. And, the limited access to child care during the pandemic has caused more women to leave the workforce. While the December down payment provides $10 billion in funding through the Child Care and Development Block Grant program, the president-elect’s proposal expands this investment with an additional $15 billion in funding, including for those who experienced a job interruption during the COVID-19 pandemic and are struggling to afford child care. This additional assistance with child care costs will help the disproportionate number of women who left the labor force to take on caregiving duties reenter the workforce. And, this expanded investment will also help rebuild the supply of child care providers, and encourage states to take meaningful steps towards increasing the pay and benefits of child care workers.
Increase tax credits to help cover the cost of childcare. To help address the childcare affordability crisis, President-elect Biden is calling on Congress to expand child care tax credits on an emergency basis for one year to help working families cover the cost of childcare. 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 tax credit will be refundable, meaning that families who don’t owe a lot in taxes will still benefit. The full 50 percent reimbursement will be available to families making less than $125,000 a year. And, all families making between $125,000 and $400,000 will receive a partial credit so they receive benefits at least as generous as those they can receive today.
Bolster financial security for families and essential workers in the midst of the pandemic. The lowest income families are particularly vulnerable in the midst of the pandemic, and President-elect Biden is calling for one year expansions of key supports for families on an emergency basis. The Child Tax Credit should be made fully refundable for the year. Currently, 27 million children live in families with household incomes low enough that they didn’t qualify for the full value of the Child Tax Credit, and this measure would give these children and their families additional needed resources. The president-elect is also calling to increase the credit to $3,000 per child ($3,600 for a child under age 6) and make 17 year-olds qualifying children for the year.
He is also calling for an expansion of the Earned Income Tax Credit for the year to ensure that the lowest income workers get critical support including millions of essential workers. He is proposing to raise the maximum Earned Income Tax Credit for childless adults from roughly $530 to close to $1,500, raise the income limit for the credit from about $16,000 to about $21,000, and expand the age range that is eligible including by eliminating the age cap for older workers and expanding eligibility for younger workers so that they can claim the credit they deserve. Expanding the Earned Income Tax Credit for childless adults would give a needed boost to the earnings of several million workers, including cashiers, home health aides, delivery people, and other people working in essential occupations. The president-elect also is committed to making sure that Americans who see their earnings fall in 2021 due to the pandemic don’t see the Earned Income Tax Credit reduced as a result.
Lastly, the president-elect is calling for an additional $1 billion for states to cover the additional cash assistance that Temporary Assistance to Needy Families (TANF) recipients needed as a result of the pandemic crisis. The pandemic has led to increased TANF caseloads, generated higher costs for many TANF recipients — from higher utility costs to the need for internet access for remote schooling — and longer periods of joblessness given high unemployment. These funds will provide sorely needed relief.
Preserving and expanding health coverage. Roughly two to three million people lost employer sponsored health insurance between March and September, and even families who have maintained coverage may struggle to pay premiums and afford care. Further, going into this crisis, 30 million people were without coverage, limiting their access to the health care system in the middle of a pandemic. To ensure access to health coverage, President-elect Biden is calling on Congress to subsidize continuation health coverage (COBRA) through the end of September. He is also asking Congress to expand and increase the value of the Premium Tax Credit to lower or eliminate health insurance premiums and ensure enrollees — including those who never had coverage through their jobs — will not pay more than 8.5 percent of their income for coverage. Together, these policies would reduce premiums for more than ten million people and reduce the ranks of the uninsured by millions more.
Expanding access to behavioral health services. The pandemic has made access to mental health and substance use disorder services more essential than ever. The president-elect is calling on Congress to appropriate $4 billion to enable the Substance Abuse and Mental Health Services Administration and the Health Resources and Services Administration to expand access to these vital services.
Ensure adequate funding for veterans’ health. COVID-19 has put enormous pressure on America’s veterans and on the Veterans Health Administration that is charged with providing and facilitating top-notch care for them. The president-elect is committed to ensuring America delivers on its promise to the people who have served our country. To account for increased usage as many veterans have lost access to private health insurance, higher overall costs, and other pandemic-related impacts, the president-elect is immediately requesting an additional $20 billion to make sure that veterans’ health care needs can be met through this crisis.
Combat increased risk of gender-based violence. The COVID-19 pandemic has exacerbated domestic violence and sexual assault, creating a “shadow pandemic” for many women and girls who are largely confined to their home with their abuser and facing economic insecurity that makes escape more difficult. President Biden is calling for at least $800 million in supplemental funding for key federal programs that protect survivors.
Provide Critical Support to Struggling Communities.
COVID-19 and the resulting economic crisis has devastated communities across the country. Schools remain closed, with students struggling with remote learning and parents — 1.6 million mothers this fall — leaving the workforce. Small businesses, the backbones of their communities that employ nearly half of American workers, are unable to keep their doors open. And, some state and local essential workers are seeing their wages reduced or their jobs disappear. President-elect Biden is calling on Congress to send a lifeline to small businesses; protect educators, public transit workers, and first responders from lay-offs; and keep critical services running at full strength. Altogether, his plan would provide approximately $440 billion in critical support to struggling communities. This is in addition to funds that President-elect Biden is requesting for safely reopening schools throughout the country.
President-elect Biden’s plan will:
Provide small businesses with the funding they need to reopen and rebuild. Small businesses sustain half of the private sector jobs in America, and they have struggled in the wake of COVID-19. Black- and Brown-owned small businesses, and those in hard-hit industries like restaurants, hotels, and the arts, have suffered disproportionately. Nationally, small business revenue is down 32 percent, and at least 400,000 firms have permanently closed. To help hard-hit firms survive the pandemic and fully recover, President-elect Biden is calling on Congress to:
Provide grants to more than 1 million of the hardest hit small businesses. This $15 billion in flexible, equitably distributed grants will help small businesses get back on their feet, put the current disaster behind them, and build back better.
Leverage $35 billion in government funds into $175 billion in additional small business lending and investment. With a $35 billion investment in successful state, local, tribal, and non-profit small business financing programs, Congress can generate as much as $175 billion in low-interest loans and venture capital to help entrepreneurs — including those in the clean energy sector — innovate, create and maintain jobs, build wealth, and provide the essential goods and services that communities depend on.
In addition, the president-elect wants to work with Congress to make sure that restaurants, bars, and other businesses that have suffered disproportionately have sufficient support to bridge to the recovery, including through the Community Credit Corporation at the U.S. Department of Agriculture (USDA).
Provide support for first responders and other essential workers. Throughout the COVID-19 pandemic, first responders, frontline public health workers, and countless other essential workers have risked their lives to keep our communities safe and functioning. Educators have worked tirelessly to keep our children learning and growing, coming up with new ways to reach and engage their students, often while balancing caring for their own children. Without these front line workers, we will not be able to effectively respond to the pandemic, administer the vaccine, or safely reopen our schools. President-elect Biden is calling on Congress to provide $350 billion in emergency funding for state, local, and territorial governments to ensure that they are in a position to keep front line public workers on the job and paid, while also effectively distributing the vaccine, scaling testing, reopening schools, and maintaining other vital services. The president-elect is also calling on Congress to allocate $3 billion of this funding to the Economic Development Administration (EDA). Grants from EDA provide resources directly to state and local government entities, tribal institutions, institutions of higher education, and non-profits to fund initiatives that support bottom’s up economic development and enable good-paying jobs. This funding — double the amount provided by the CARES Act — will support communities nationwide with a broad range of financial needs as they respond to and recover from COVID-19.
Protect the future of public transit. Safe and dependable public transit systems are critical for a robust and equitable economy recovery. The president-elect is calling for $20 billion in relief for the hardest hit public transit agencies. This relief will keep agencies from laying off transit workers and cutting the routes that essential workers rely on every day while making these transit systems more resilient and ensuring that communities of color maintain the access to opportunity that public transportation provides.
Support Tribal governments’ response to COVID-19. COVID-19 has exacted an especially high toll in Indian Country. People living on reservations are four times more likely to have COVID-19 and American Indian and Alaska Natives are nearly twice as likely to die from COVID-19 than white Americans. While the December down payment had many beneficial provisions, it included little direct funding to help Tribal governments respond to COVID-19. President-elect Biden is calling on Congress to give Tribes the resources they need to obtain sufficient personal protective equipment, increase access to clean water and electricity, and expand internet access so that children can learn remotely and more families can obtain basic health care through telemedicine. President-elect Biden’s plan would invest $20 billion in Indian Country to support Tribal governments’ response to the pandemic. These resources will help to reduce stark and persistent inequities in COVID-19 transmission, hospitalization, and death, while improving economic conditions and opportunity.
Modernize federal information technology to protect against future cyber attacks.
In addition to the COVID-19 crisis, we also face a crisis when it comes to the nation’s cybersecurity. The recent cybersecurity breaches of federal government data systems underscore the importance and urgency of strengthening U.S. cybersecurity capabilities. President-elect Biden is calling on Congress to launch the most ambitious effort ever to modernize and secure federal IT and networks. To remediate the SolarWinds breach and boost U.S. defenses, including of the COVID-19 vaccine process, President-elect Biden is calling on Congress to:
Expand and improve the Technology Modernization Fund. A $9 billion investment will help the U.S. launch major new IT and cybersecurity shared services at the Cyber Security and Information Security Agency (CISA) and the General Services Administration and complete modernization projects at federal agencies. In addition, the president-elect is calling on Congress to change the fund’s reimbursement structure in order to fund more innovative and impactful projects.
Surge cybersecurity technology and engineering expert hiring. Providing the Information Technology Oversight and Reform fund with $200 million will allow for the rapid hiring of hundreds of experts to support the federal Chief Information Security Officer and U.S. Digital Service.
Build shared, secure services to drive transformational projects. Investing $300 million in no-year funding for Technology Transformation Services in the General Services Administration will drive secure IT projects forward without the need of reimbursement from agencies.
Improving security monitoring and incident response activities. An additional $690M for CISA will bolster cybersecurity across federal civilian networks, and support the piloting of new shared security and cloud computing services.
President-Elect Joe Biden described the first part of his two-pronged plan of Rescue and Recovery from the surging coronavirus pandemic and the economic devastation. In the first of two speeches, he detailed his Rescue Plan to speed up distribution of COVID-19 vaccinations and economic relief to families, states and localities.
Here is a highlighted transcript of his remarks, delivered from Wilmington, Delaware, on January 14: –Karen Rubin/news-photos-features.com
Good evening, my fellow Americans.
It’s been three hundred and forty-three days since the virus that has ravaged our nation tragically claimed its first life.
On February 6, 2020, Patricia Dowd took her last breath at home, under the California sun of Santa Clara. She was 57 years old. A beloved wife, mother, daughter, and sister. She never knew she had the virus, at a time when most folks never even heard about the virus. But just like that, she was gone.
Almost exactly one year later, nearly 400,000 of our fellow Americans have met the same cruel fate. Countless families and friends left behind, with unrelenting grief and guilt, anger and frustration. And the emptiness felt by the loss of life is compounded by the loss of our way of life.
During this pandemic, millions of Americans — through no fault of their own — have lost the dignity and respect that comes with a job and a paycheck.
Millions of Americans who never thought they’d be out of work are facing eviction or waiting hours in their car to feed their families as they drive up to a food bank.
Millions who have kept their job but have seen their hours and paycheck reduced are barely hanging on as well.
That is happening today in the United States of America.
Just as we are in the midst of a dark winter of this pandemic as cases, hospitalizations, and deaths spike at record levels, there is real pain overwhelming the real economy. The one where people rely on their paycheck — not their investments — to pay their bills, their meals, and their children’s needs.
You won’t see this pain if your score card is how things are going on Wall Street. But you will see it very clearly if you examine what the twin crises of the pandemic and the sinking economy have laid bare.
The growing divide between those few people at the very top who are doing quite well in this economy — and the rest of America.
Just since this pandemic began, the wealth of the top 1% has grown by roughly $1.5 trillion since the end of last year — four times the amount for the entire bottom 50%.
Some 18 million Americans are still relying on unemployment insurance.
Some 400,000 small businesses have permanently closed their doors.
It’s not hard to see that we are in the middle of a once-in-several generation economic crisis within a once-in-several generation public health crisis.
A crisis of deep human suffering in plain sight.
And there is no time to wait.
We have to act and act now.
This is what the economists are telling us.
More importantly, it is what the values we hold in our hearts as Americans are telling us.
A growing chorus of top economists agree that, in this moment of crisis, with interest rates at historic lows, we cannot afford inaction.
It’s not just that smart fiscal investments, including deficit spending, are more urgent than ever. It’s that the return on these investments — in jobs, in racial equity — will prevent long-term economic damage and the benefits will far surpass the costs.
A growing number of top economists has shown even our debt situation will be more stable — not less stable — if we seize this moment with vision and purpose.
And so, tonight, I’d like to talk to you about our way forward. A two-step plan of rescue and recovery. A two-step plan to build a bridge to the other side of the crises we face and to a better, stronger, more secure America.
Tonight, I’ll lay out the first step — the American Rescue Plan — that will tackle the pandemic and get direct financial assistance and relief to Americans who need it the most.
Next month, in my first appearance before a Joint Session of Congress, I will lay out the second step, my Build Back Better Recovery Plan. It will make historic investments in infrastructure and manufacturing, innovation, research and development, and clean energy. Investments in the caregiving economy and in skills and training needed by our workers to compete and win the global economy of the future.
Moody’s — an independent Wall Street firm — said this approach would create more than 18 million jobs.
Our rescue and recovery plan is the path forward with a seriousness of purpose, a clear plan with transparency and accountability with a call for unity that is equally necessary.
Unity is not a pie-in-the-sky dream, it is a practical step to getting things done.
As I said when it passed in December, the bipartisan COVID-19 relief package was an important first step. I am grateful for the Democratic, Republican, and Independent members of Congress who came together to get it done.
But as I said at the time, it’s just a down-payment. We need more action, more bipartisanship, and we need to move fast.
Our rescue plan starts aggressively in order to speed up our national COVID-19 response.
The vaccines offer so much hope. We are grateful to the scientists and researchers, and everyone who participated in the clinical trials. We are also grateful for the rigorous review and testing that’s led to millions of people around the world already being vaccinated safely.
But, the vaccine rollout in the United States has been a dismal failure thus far.
Tomorrow, I will lay out our vaccination plan to correct course and meet our goal of 100 million shots by the end of our first 100 days.
This will be one of the most challenging operational efforts we have ever undertaken as a nation.
We will move Heaven and Earth to get more people vaccinated, to create more places for them to get vaccinated, to mobilize more medical teams to get shots in peoples’ arms, and to increase vaccine supply and get it out the door as fast as possible.
We will also do everything we can to keep our educators and students safe and to safely open a majority of our K-8 schools by the end of our first 100 days.
We can do it, if we give school districts, communities, and states the clear guidance they need as well as the resources they will need that they can not afford right now because of the economic crisis we are in. That means more testing and transportation, additional cleaning and sanitizing services, protective equipment, and ventilation systems in the schools.
And we need to make sure that workers who have COVID-19 symptoms and are quarantined, and those who need to take care of family members with COVID-19 symptoms should be able to stay home from work and still get paid.
This will reduce spread of the virus and make sure workers get the support they need.
But they need about $400 billion in funding from Congress to make all of this happen.
It’s a lot, but I’m convinced we are ready to get this done.
The very health of our nation is at stake.
Our rescue plan also includes immediate relief for Americans hardest hit and most in need.
We will finish the job of getting a total of $2,000 in direct relief to people who need it the most.
$600 is simply not enough if you still have to choose between paying rent and putting food on the table.
Even for those who have kept their jobs these checks are really important.
You see, if you are an American worker making $40,000 a year with less than $400 in savings, maybe you’ve lost hours, or maybe you’re doing fewer shifts driving a truck, or caring for kids, or the elderly.
You’re out there putting your life on the line to work during this pandemic and worried every week that you’ll get sick, lose your job, or worse.
$2,000 is going to go a long way to ease that pain.
We will also provide more peace of mind for struggling families by extending unemployment insurance benefits for millions of workers.
That means that the 18 million Americans currently relying on unemployment benefits while they look for work can count on these checks continuing to be there. Plus, there will be a $400 per week supplement to help make ends meet.
This gets money quickly into the pockets of millions of Americans who will spend it immediately on food, rent, and other basic needs. That helps our whole economy grow.
We will also tackle the growing hunger crisis in America.
As I speak, and as Vice President-elect Harris has spoken about this many times, 1 in 7 households in America — more than 1 in 5 Black and Latino households in America – report that they do not have enough food to eat.
This includes 30 million adults and as many as 12 million children.
It’s wrong. It’s tragic. It’s unacceptable.
We will extend emergency nutrition assistance for 43 million children and families enrolled in the SNAP program through the rest of this year.
And we will help hard-hit restaurants prepare meals for the hungry and provide food for families who need it.
We will also invest $3 billion in making sure mothers and their young children have the nutrition they need.
This would not only meet our moral obligation we have to one another, but it would also spur our economy and get restaurant workers back on the job.
As we work to keep people from going hungry, we will also work to keep a roof over their heads to stem the growing housing crisis in America.
Approximately 14 million Americans have fallen behind on rent, many at risk of eviction.
If we don’t act now there will be a wave of evictions and foreclosures in the coming months as the pandemic rages on. This would overwhelm emergency shelters and increase COVID-19 infections as people have nowhere to go and can’t socially distance.
Next week we will take action to extend nationwide restrictions on evictions and foreclosures. This would provide more than 25 million Americans greater stability instead of living on the edge every single month.
And, I am asking Congress to do its part by funding rental assistance for 14 million hard-hit families and tenants. It will also be a bridge to economic recovery for countless mom and pop landlords.
These crises are straining the budgets of states, cities, and tribal communities that are forced to consider layoffs and service reductions. It means the people putting their lives at risk are the very people now at risk of losing their jobs.
Police officers. Firefighters. All first responders. Nurses. Educators. Over the last year, more than 600,000 education jobs have been lost in our cities and towns.
Our rescue plan will provide emergency funding to keep these essential workers on the job and maintain essential services. It will ensure that vaccines are administered and schools can re-open.
Vice President-elect Harris and I have been speaking with county officials, mayors, and governors of both parties on a regular basis. We are ready to work with them to help get the relief they need.
Our rescue plan will also help small businesses that are the engines of our economic growth and economy as a whole. They are the glue that holds communities together.
But they are hurting badly, and they account for nearly half of the entire U.S. workforce.
Our rescue plan will provide flexible grants to help the hardest hit small businesses survive the pandemic. And low-cost capital to help entrepreneurs of all backgrounds create and maintain jobs, plus provide the essential goods and services that communities depend on.
Last week, I laid out how we will make sure our emergency small business relief is distributed swiftly and equitably.
It will focus on small businesses on Main Street. It will focus on minority-owned small businesses and women-owned small businesses finally having equal access to the resources they need to reopen and rebuild. And, we will be responsible with taxpayer dollars ensuring accountability that reduces waste, fraud, or abuse like we did with the Recovery Act during the Obama-Biden Administration.
Direct cash payments. Extended unemployment insurance. Rent relief. Food assistance. Keeping essential frontline workers on the job. Aid to small businesses.
These are key elements of the American Rescue Plan that would lift 12 million Americans out of poverty and cut child poverty in half.
That’s 5 million children lifted out of poverty.
Our plan would reduce poverty in the Black community by one-third. It would reduce poverty in the Hispanic community by almost forty percent.
And it includes much more, like an increase of the minimum wage to at least $15 an hour. No one working 40 hours a week should still be below the poverty line.
It includes access to affordable child care that will enable parents, particularly women, to get back to work.
I look forward to working with members of Congress from both parties to move quickly to get the American Rescue Plan to the American people.
And then we can move with equal urgency and bipartisanship to my Build Back Better Recovery Plan that I will call for next month to generate even more economic growth.
American manufacturing was the arsenal of democracy in World War II. It will be so again. Imagine the future Made in America in all of America and all by Americans. We will use taxpayer dollars to rebuild America. We will buy American products and support millions of American manufacturing jobs and enhance our competitive strength in an increasingly competitive world.
Imagine historic investments in Research & Development to sharpen America’s innovative edge in markets where global leadership is up for grabs, markets like battery technology, artificial intelligence, biotechnology, and clean energy.
Imagine confronting the climate crisis with American jobs and ingenuity leading the world.
It’s time to stop talking about infrastructure and finally start building it. Millions of good-paying jobs that put Americans to work rebuilding our roads, bridges, and ports to make them more climate resilient, to make it faster, cheaper, and cleaner to transport American-made goods across our country and around the world.
And, imagine millions of jobs in our caregiving economy to ease the financial burden of caring for young children and aging loved ones. Let’s make sure our caregivers, mostly women, women of color, and immigrants, have the pay and dignity they deserve.
We can do these bold, practical things now.
I know what I just described will not come cheaply. But failing to do so will cost us dearly. But the consensus among leading economists is we simply cannot afford not to do it.
Independent, respected institutions from around the world from the Federal Reserve to the International Monetary Fund have underscored the urgency. Even Wall Street firms have reinforced the logic.
If we invest now, boldly, smartly, and with an unwavering focus on American workers and families we will strengthen our economy, reduce inequity, and put our nation’s long term finances on a more sustainable course.
And where we are making permanent investments as I said on the campaign, we will pay for them by making sure that everyone pays their fair share in taxes.
We can do it without punishing anyone by closing tax loopholes for companies that ship American jobs overseas or that allow American companies to pay zero in federal income taxes.
Asking everyone to pay their fair share so we can make permanent investments to rescue and rebuild America is the right thing for our economy, it’s the fair thing and decent thing to do.
But we not only have an economic imperative to act now, we have a moral obligation.
In this pandemic, in America, we cannot let people go hungry.
We cannot let people get evicted.
We cannot watch nurses and educators and others lose their jobs.
We must act now and decisively.
My fellow Americans, the decisions we make in the next few weeks and months will determine whether we thrive in a way that benefits all Americans, or whether we stay stuck in a place where those at the top do great while economic growth for most everyone else is just a spectator sport — where America’s prospects dim, not brighten.
They will determine whether we reassert American leadership and out-compete our competitors in the global economy or whether we watch them catch up and pass us by.
Together I know we will choose a path that includes all Americans so we own the 21st Century.
But even with all of these bold steps,it will take time to get where we need to be. There will be stumbles. But I will always be honest with you about both the progress we’re making and the setbacks meet.
Here’s the deal — the more people we vaccinate, and the faster we do it, the sooner we can save lives put this pandemic behind us and get back to our lives and loved ones.
The sooner we can rescue and rebuild our economy.
I know it’s been nearly a year that’s tested us beyond measure.
For all of you who have lost someone my heart goes out to you. I know what it’s like to stare at the empty chair. For those who have fallen on hard times, I know you can never get back what you lost.
But as your president, I know that every day matters, and every person matters.
From the very first to the nearly 400,000 lost American souls and counting, and to the millions of you just looking for a fighting chance in this economy: I will not forget what you’re going through. We understand what you’re going through.
We will not give up.
We will come back together.
While we didn’t get into all of this overnight, we won’t get out of it overnight, and we can’t do it as a divided nation. The only way we come through this is together as fellow Americans and as the United States of America.
And when we do, there is nothing beyond our capacity.
Out of all the peril of this moment I want you to know, I see all the promise as well.
I remain as optimistic about America as I have ever been.
We look forward to these announcements by President-Elect Joe Biden of his nominees for his cabinet. Biden has provided soothing calm, hope for a better future from the painful chaos, dysfunction and outright sabotage that we have daily had to endure in the four horrid years of the Trump Dis-Administration. What a contrast: Biden has continued his pattern of hiring people with extraordinary expertise, achievements, and who notably reflect the American people in gender and background, and also notably are people who are first or second generation Americans and who come from modest means. But there is nothing modest about their achievements. Today, Biden introduced his Economic Team: his nominees for Secretary of Labor, most notably Boston’s mayor who comes from a union organizing background (cementing Biden’s promise to promote, not just tolerate union-organizing and his belief that the middle class is what made America and unions made the middle class); Commerce and Small Business Administration. The overriding themes: to “reward work, not wealth,” boost small businesses and entrepreneurs, invest in a clean economy and to give everyone an equal shot at the American Dream.
His team will enact COVID-19 relief to bolster small businesses, aid hardest hit industries, people who are unemployed for no fault of their own; raise the minimum wage to $15; reinstate worker protections; incentivize entrepreneurship and shift to a clean economy.
With these announcements, Biden said, he has finished naming his cabinet: “Twenty-four outstanding women and men who will get our country moving again, who will restore trust in our government again, and who are ready to go on Day One. This is a Cabinet that looks like America.”
Here are highlighted remarks of Biden and his nominees: –Karen Rubin/news-photos-features.com
Today, I am pleased to announce the latest members of our economic team.
And with their announcements, I am proud to announce that we have finished naming our Cabinet.
Twenty-four outstanding women and men who will get our country moving again, who will restore trust in our government again, and who are ready to go on Day One.
This is a Cabinet that looks like America.
That taps into the full range of talents we have in our nation.
And a historic Cabinet.
This will be the first Cabinet ever that is evenly composed of women and men.
It will be the first Cabinet ever with a majority of people of color.
It has more than a dozen history-making appointments, including the first woman Treasury Secretary, the first African American Defense Secretary, the first openly gay Cabinet member, the first Native American Cabinet secretary.
We are also on track to name a record 50 high-level appointees subject to Senate confirmation before Inauguration Day.
More than any President-elect ever.
I have done my job.
It is my hope and expectation that the Senate will confirm these nominees promptly and fairly.
That’s especially the case for nominees for Secretaries of State, Defense, Treasury, and Homeland Security who I nominated back in November.
Given what our country has been through the last four years and the last few days, and given the threats and risks in this world, they should be confirmed as close to January 20th as possible. There should be no vacancies at State, Defense, Treasury, and Homeland Security.
And as we remain in this dark winter of the pandemic, and with an economic crisis that’s deepened, we have no time to lose on the entire team.
Consider the December jobs report released today.
The anxiety and fear of the women and men out there reminds me of when President Obama and I were sworn in during the Great Recession in 2009.
This December jobs report shows millions of Americans are still hurting through no fault of their own.
We lost 140,000 jobs — the first negative jobs report since the height of the pandemic in the spring.
More people have just lost a job while many have been out of work for a long time.
The ongoing gap in Black and Latino unemployment remains much too large.
And in many ways, the jobs report is a pandemic report.
With the pandemic raging, people are losing work and losing hope.
The hospitality industry, restaurants and bars, lost more than 372,000 jobs.
State and local governments are slashing jobs — 20,000 local educators lost their jobs last month.
In the midst of this pandemic, there are millions of people out of work and unable to pay rent or the mortgage.
They’re waiting in line for hours at a food bank. In the United States of America, people are waiting miles in their cars waiting for a meal.
And they’re left staring at the ceiling at night, unable to sleep, wondering if they will ever be okay.
The bottom line is the jobs report shows we need to provide more immediate relief for working families and businesses now.
Not just to help them get to the other side of this painful crisis, but to avoid the broader economic costs due to long-term unemployment, hunger, homelessness, and businesses failing.
And by acting now, the vast majority of leading economists suggest this is what the economy needs.
In fact, economic research confirms that with conditions like today’s crisis, especially with such low interest rates, taking immediate action, even with deficit financing, will help the economy, reduce scarring in the workforce, increase growth, and reduce our national debt burden.
As I’ve said before, the bipartisan COVID relief package passed in December is an important step, but just a downpayment.
Next week, I will be laying out the groundwork for the next COVID economic relief package that meets this critical moment for our economy and country.
For example, the vaccines give us hope, but their rollout has been a travesty.
This will be the greatest operational challenge we have ever faced, and we’re going to need billions of dollars to get the vaccines from a vial and into the arms of millions of Americans.
We’re also going to need tens of billions of dollars to help reopen our schools safely.
State, local, and tribal communities need tens of billions of dollars to keep educators, police officers, firefighters, and other first responders and public health workers on the job.
We need more direct relief flowing to families and small businesses, including finishing the job and getting people $2,000 in relief. $600 is simply not enough when you have to choose between paying rent or putting food on the table and keeping the lights on.
I also hope that Democratic control of the House and Senate will raise the odds of prompt action on increasing the minimum wage.
I’ve long said that we need to reward work, not wealth in this country.
People in both parties now recognize it’s time to raise the minimum wage so hardworking people earn at least $15 an hour.
No one who works 40 hours a week in America should still live below the poverty line.
They are entitled to a minimum of $15 an hour.
A big focus will also be on small businesses and how to correct the current Administration’s failures to get relief to Main Street small businesses that are most in need.
Mom and pop stores are the backbone of our economy.
They are the glue that holds communities together.
But today, more than 1 in 4 small businesses are not open.
At least 400,000 are closed for good.
As of a month ago, a third of Black-owned businesses, more than a fifth of Latino-owned businesses, and more than a quarter of Native American-owned businesses have less than a month of reserves to cover expenses.
The previous rounds of economic relief last year helped millions of small businesses stay afloat and keep employees on the payroll.
But there were clear problems.
Black and Brown-owned small businesses had less access to the relief.
Mom and pop shops were often last in line, while big, well-connected businesses jumped in front of the line and got more relief and got it faster.
And at every turn, the Trump Administration has undermined accountability for every tax dollar spent, weakening oversight and routinely firing Inspectors General.
So it’s no surprise that an independent watchdog found that tens of thousands of ineligible companies received relief they shouldn’t have, including from fraud and abuse that siphoned off support for the very businesses most in need.
The good news is that the relief package passed last month provides additional aid to small businesses and workers. But as I have said from the beginning, we need to make sure that relief and future relief reaches everyone who needs it.
These relief dollars will start to flow quickly, potentially while the current Administration is still in office. And they may send out money that we won’t have any control over.
But for what we do have control over, I want to be clear about my priorities for distributing this emergency aid swiftly and equitably.
Our focus will be on the small businesses on Main Street that aren’t wealthy and well-connected and that are facing real economic hardships through no fault of their own.
Our priority will be on Black, Latino, Asian, and Native American-owned small businesses, and women-owned businesses, finally having equal access to the resources needed to reopen and rebuild.
We will make a concerted effort to help small businesses in low-income communities, in big cities, small towns, and rural communities that have faced systemic barriers to relief.
Think of the mom and pop owner with a couple of employees who can’t just pick up a phone and call a banker, or who doesn’t have lawyers and accountants to help them through the complicated rules to know if they even qualify, or who simply didn’t know there was even relief available in the first place.
And as we saw in this morning’s jobs report, restaurants, bars, and the hospitality industry have been slammed by the virus. We will direct relief to these businesses and others that have been hit hardest. We owe them that support to help them get through the other side of this crisis.
And I promise you, we will investigate and prosecute waste and fraud in these programs so that money goes to companies that deserve it and will use it to help their employees and communities.
When I implemented the Recovery Act, we invested more than $800 billion to help our economy recover and rebuild with less than two-tenths of one percent of waste, fraud, and abuse.
We know how to do this.
We know how important predictability and clarity are to small businesses.
From day one, our Administration will work to ensure that small businesses and financial institutions in every community understand the rules for these programs, the resources available to them, and where they can turn for technical assistance if they need it.
We will have navigators to help guide them through each step of the process until the money they need is in their bank account.
And to the lenders participating in these programs, you should move quickly without delay to begin extending relief. But I urge you to not disburse these funds in the same old, inequitable ways.
Here’s my commitment in return — we will make our expectations of you crystal clear so that you can quickly and equitably deliver relief to the communities you serve, unlike what has been happening during this crisis
The bottom line is we are in the midst of the most unequal economic and jobs crisis in modern history.
Congress needs to act as quickly as possible on all of the issues I just laid out.
That is how we can contain the pandemic and build back better with an economy that works for all Americans.
And this is the team that will help get it done.
For Secretary of Commerce, I nominate Governor Gina Raimondo of Rhode Island.
A daughter of a working-class family who knows what it’s like when a parent’s factory job is shipped overseas.
She never took her parents’ sacrifices for granted.
Always remembers where she came from.
She became a successful entrepreneur who created jobs on Main Street and brought businesses back from the edge.
She became a state Treasurer who invested in local communities and took on financial predators.
And today, she is one of the most effective and forward-thinking governors in the United States of America — the first woman ever to lead the Ocean State.
She’s created an innovative loan program that’s helped minority-owned and women-owned businesses access the capital they need but wasn’t always available to them.
She’s worked with employers to design skills-training programs so that local workers would be equipped to take on good-paying jobs in their own communities.
She has put Rhode Island on a path of achieving 100% renewable energy, and she will be a key player in helping position the United States as the global leader in the 21st Century clean energy economy.
And she knows what her fellow governors, Democrats and Republicans alike, are dealing with on the frontlines of the pandemic and economic crises and how we can all partner together as one nation to contain COVID-19 and build back better.
I’m honored she is joining the team.
In her remarks, Raimondi said, “We invested in our people — in their skills, their opportunities, and their dreams. We helped new businesses launch and sparked others to hire and grow responsibly. That’s the same vision, the same faith in American workers and entrepreneurs that I see in the Build Back Better agenda.
“It’s a vision for an inclusive recovery that lifts up those who have been left behind. It’s a vision for a national effort that provides skills, training, and wraparound supports to get Americans back to work. It’s a vision for rebuilding American manufacturing and bringing back jobs that have gone overseas.”
For Secretary of Labor, I nominate Mayor Marty Walsh of Boston.
Son of Irish immigrants from County Galway.
They moved to Boston.
Marty was born and raised in Dorchester.
I know him. Tough as nails.
Diagnosed with cancer at age 7, beat it at age 11.
Joined the Laborers Union Local 223 at age 21.
Elected to the state legislature.
Became union president.
Then graduated from college at age 42.
He is now in his second term as the successful mayor of an iconic American city, and who always puts working people first.
Fighting for a $15 minimum wage and paid family leave.
Providing frontline workers with emergency child care and the protective equipment they need.
Marty understands like I do that the middle class built this country and unions built the middle class.
He’s seen how union workers have been holding this country together during this crisis.
Health care workers keeping our hospitals safe, clean, and effective.
Public service workers fighting against budget shortfalls to keep communities afloat.
Port workers, car haulers, warehouse workers, and folks keeping our air and rail systems running.
They are literally what’s keeping us going.
And they deserve a Secretary of Labor who knows how to build their power as workers.
Who knows that when I say our future will be made in America, it will be a future built by American workers.
A future with historic investments in infrastructure, clean energy, manufacturing, and so much more that will create millions of good-paying union jobs.
Marty knows worker power means not just protecting the right to unionize but encouraging unionization and collective bargaining.
It means protecting pensions.
Ensuring worker safety.
Increasing the minimum wage.
Ensuring workers are paid for the overtime they earned, like we fought to do in the Obama-Biden Administration, but this Administration weakened.
And making sure that we have a trade policy where for every decision we make, unions are at the table, focused on winning good jobs for American workers.
This is one of the most important departments to me.
I trust Mayor Walsh, and I’m honored he accepted.
But I also want to say that I did give serious consideration to nominating my friend Senator Bernie Sanders to this position. I’m confident he could’ve done a fantastic job.
I can think of no more passionate and devoted ally of working people in this country.
But after Tuesday’s result in Georgia, giving Democrats control of the Senate on a tied vote, Bernie and I agreed that we cannot put control of the Senate at risk on the outcome of a special election in Vermont.
He agreed we couldn’t take that chance.
But we also discussed how we would work together, travel the country, helping Marty, and meet with the working men and women who feel forgotten and left behind in the economy.
And we agreed that we will work closely on our shared agenda to increase worker power and protect the dignity of work for all working people.
I thank Bernie for his continued friendship and leadership and I look forward to us working together along with Marty.
Mayor Walsh said, “Now we have the opportunity to put power back into the hands of working people. And that is a good thing for our economy and our country.
“We can defend workers’ rights. We can strengthen collective bargaining. We can grow union membership. And we can create millions of good-paying jobs with investments in infrastructure, clean energy, high-tech manufacturing — along with the workforce training to help people get those good jobs.”
For Administrator of the Small Business Administration, I nominate Isabel Guzman.
She grew up in California, working alongside her father in the small veterinary businesses he built.
She developed an early understanding of what small businesses mean to their employees, the neighborhoods they support, and the families whose dreams they represent.
She dedicated her career to creating jobs and supporting entrepreneurs as a senior official in the Obama-Biden Small Business Administration.
As the Director of California’s Office of the Small Business Advocate, she works tirelessly to ensure that everyone with an entrepreneurial spark has a fair and equal shot to get off the ground and succeed.
The Biden-Harris Administration will be locked in on helping small businesses recover, rebuild, and remain the engines of our economy.
And as head of the SBA, Isabel will be leading that critical mission to not only rescue small businesses in crisis, but to provide the capital to entrepreneurs across the country so they can innovate, create jobs, and help lead us into recovery.
I am grateful that she has accepted this call to serve.
Guzman in her remarks, said, “All of our small businesses are critical to our collective success as a nation. Their American dreams fuel our economy, bring new ideas to transform our lives for the better, and enliven every main street in America. And now more than ever, our small businesses need us.
“I share your commitment to help strengthen the many small business owners who have seen their dreams and livelihoods impacted by COVID-19. And to create opportunities and instill greater equity for all of the new startups that will lead us to recovery. “
For Deputy Commerce Secretary, I nominate a good and loyal friend, Don Graves.
Don is a longtime trusted advisor.
He was there at the Treasury Department during the depths of the Great Recession, helping small businesses weather the storm and stay afloat.
When President Obama asked me to lead the effort to get Detroit out of bankruptcy and off its back he said I could take anyone in the Administration. So, I went to the Treasury Department and asked for Don to come over and work on it full-time.
It was the best decision we made in that effort. He did a great job working with city and state officials on its road to recovery. It’s about the small details like the number of buses and street lights that are needed.
He also helped me lead our national strategy to equip our workers with the skills they need for the good-paying jobs of the 21st Century, in health care, IT, clean energy, advanced manufacturing, and more.
And he was there to help me launch the National Cancer Moonshot and marshal the full resources of the federal government to help end cancer as we know it.
A cancer survivor himself, diagnosed and treated while he was working for me, Don knows about hope and resilience.
I’m grateful to him and his wonderful family for answering the call to serve once again.
Graves laid out the standard for Biden’s economic team: “To revive the economy through the pandemic and build it back better. To advance racial equity across the board and to meet the existential threat of climate change with American jobs and ingenuity.
“With your leadership, I know this Administration will provide the American people the support they need to thrive, and the opportunity to turn their hopes into lives of dignity and respect they deserve.”