Category Archives: Economy

Biden Administration, Economic Policies, Economy, Energy, Joe Biden, President Joe Biden

Biden Takes Action to Reduce Pain of ‘Putin’s Price Hike’ at the Pump

Americans are recoiling at rising prices at the pump, failing to appreciate that Europeans are seeing prices rise 45%, and despite the fact our supplies are not impacted by the embargo on Russian oil. Rather, Big Oil continues to record record profits, use windfall profits to buy back stock, reward shareholders and pay bonuses to CEOs. President Biden is appealing to the companies’ “patriotism” by pumping more supply and not pocketing quite as much, and also warning against price-gouging. He is also pushing the oil companies to utilize unused leases. The White House provided a fact sheet detailing how President Biden is responding to what he has dubbed “Putin’s Price Hike” at the pump © Karen Rubin/news-photos-features.com

Americans are recoiling at rising prices at the pump, failing to appreciate that Europeans are seeing prices rise 45%, and despite the fact our supplies are not impacted by the embargo on Russian oil. Rather, Big Oil continues to record record profits, use windfall profits to buy back stock, reward shareholders and pay bonuses to CEOs. President Biden is appealing to the companies’ “patriotism” by pumping more supply and not pocketing quite as much, and also warning against price-gouging. He is also pushing the oil companies to utilize unused leases. Here is a fact sheet from the White House of how President Biden is responding to what he has dubbed “Putin’s Price Hike” at the pump: –Karen Rubin/news-photos-features.com

Americans face rising prices at the pump because of Putin’s Price Hike.  Since Putin accelerated his military build-up around Ukraine, gas prices have increased by nearly a dollar per gallon.  Because of Putin’s war of choice, less oil is getting to market, and the reduction in supply is raising prices at the pump for Americans.  President Biden is committed to doing everything in his power to help American families who are paying more out of pocket as a result.  That is why President Biden announced a two-part plan to ease the pain that families are feeling by increasing the supply of oil starting immediately and achieving lasting American energy independence that reduces demand for oil and bolsters our clean energy economy. 
 
Immediately Increasing Supply
 
At the start of this year, gas was about $3.30 a gallon.  Today, it’s over $4.20, an increase of nearly $1.  And now, a significant amount of Russian oil is not making it to market.  The President banned the import of Russian oil – which Republicans and Democrats in Congress called for and supported.  It was the right thing to do.  But, as the President said, Russian oil coming off the global market would come with a cost, and Americans are seeing that at the pump.
 
The first part of the President’s plan is to immediately increase supply by doing everything we can to encourage domestic production now and through a historic release from the Strategic Petroleum Reserve to serve as a bridge to greater supply in the months ahead.
 
Increasing Domestic Production
 
The fact is that there is nothing standing in the way of domestic oil production. The United States is already approaching record levels of oil and natural gas production. There are oil companies that are doing the right thing and committing to ramp up production now.  Right now, domestic production is expected to increase by 1 million barrels per day this year and nearly 700,000 barrels per day next year.
 
Still, too many companies aren’t doing their part and are choosing to make extraordinary profits and without making additional investment to help with supply.  One CEO even acknowledged that, even if the price goes to $200 a barrel, they’re not going to step up production. 
 
Right now, the oil and gas industry is sitting on more than 12 million acres of non-producing Federal land with 9,000 unused but already-approved permits for production. Today, President Biden is calling on Congress to make companies pay fees on wells from their leases that they haven’t used in years and on acres of public lands that they are hoarding without producing. Companies that are producing from their leased acres and existing wells will not face higher fees. But companies that continue to sit on non-producing acres will have to choose whether to start producing or pay a fee for each idled well and unused acre.
 
Historic Release from the Strategic Petroleum Reserve as a Bridge Through the Crisis

After consultation with allies and partners, the President will announce the largest release of oil reserves in history, putting one million additional barrels on the market per day on average – every day – for the next six months. The scale of this release is unprecedented: the world has never had a release of oil reserves at this 1 million per day rate for this length of time. This record release will provide a historic amount of supply to serve as bridge until the end of the year when domestic production ramps up.
 
The Department of Energy will use the revenue from the release to restock the Strategic Petroleum Reserve in future years. This will provide a signal of future demand and help encourage domestic production today, and will ensure the continued readiness of the Strategic Petroleum Reserve to respond to future emergencies.  
 
President Biden is coordinating this action with allies and partners around the world, and other countries are expected to join in this action, bringing the total release to well over an average 1 million barrels per day.
 
Achieving Real American Energy Independence
 
The United States is the largest oil producer in the world and is a net energy exporter.  Despite that, the actions of a dictator half a world away can still impact American families’ pocketbooks. The President will announce his commitment to achieving real energy independence – which centers on reducing our dependence on oil altogether.
 
The President will call on Congress to pass his plan to speed the transition to clean energy that is made in America.  His plan will help ensure that America creates millions of good-paying union jobs in clean, cutting-edge industries for generations to come. And it will save American families money in the immediate future – including more than $950 a year in gas savings from taking advantage of electric vehicles, and an additional $500 a year from using clean electricity like solar and heat pumps to power their homes.   
 
And, the President will issue a directive, authorizing the use of the Defense Production Act to secure American production of critical materials to bolster our clean energy economy by reducing our reliance on China and other countries for the minerals and materials that will power our clean energy future.  Specifically, the DPA will be authorized to support the production and processing of minerals and materials used for large capacity batteries–such as lithium, nickel, cobalt, graphite, and manganese—and the Department of Defense will implement this authority using strong environmental, labor, community, and tribal consultation standards. The sectors supported by these large capacity batteries—transportation and the power sector—account for more than half of our nation’s carbon emissions.  The President is also reviewing potential further uses of DPA – in addition to minerals and materials – to secure safer, cleaner, and more resilient energy for America.
 
This week alone, President Biden announced historic efforts to increase energy efficiency and lower costs for consumers.  The Department of Energy opened applications for more than $3 billion in new Bipartisan Infrastructure Law funding—ten times the historical funding levels of the Weatherization Assistance Program—for energy efficiency and electrification upgrades in thousands of homes that will save families hundreds of dollars on utility bills.  The Administration also advanced smart standards that will lower consumer costs, including a roadmap of 100 actions this year that will save families $100 annually through more efficient home appliances and equipment, as well as new fuel economy standards for cars and trucks to save drivers money at the pump.  And the Administration is seeking additional opportunities to ramp up the deployment of heat pumps to displace fuel burned in buildings, as well as programs to drive efficiency, electrification, and use of clean fuels in the industrial sector.

Biden Administration, Coronavirus Pandemic, Economy, Education, Health Care, News & Photo Features, President Joe Biden

On 1-Year Anniversary of American Rescue Plan, Highlighting the Difference in People’s Lives

ARP powered historic jobs recovery – with the largest calendar increase in jobs on record, unemployment down to 3.8%, and record drops in Hispanic Unemployment and Youth Unemployment – and ensured less scarring than any recovery in memory.

Among the ways the American Rescue Plan, signed a year ago, had a positive impact on people’s lives is funding the distribution of 200 million vaccines and millions of therapeutics, saving lives and spurring the biggest, fastest rebound in the economy in the world © Karen Rubin/news-photos-features.com

With the focus on Ukraine’s desperate fight against Russia’s criminal war and President Joe Biden’s role in marshaling the free world in its defense, little attention is being paid to the Biden Administration’s domestic actions that are having real achievements. On the one-year anniversary of the American Rescue Plan, the White House highlighted the difference the ARP is making in ordinary people’s lives; – Karen Rubin/news-photos-features.com

Lowering Health Care Costs and Increasing Health Coverage

  • 14.5 million Americans – the most ever – signed up for ACA marketplace plans due to, on average, 50% lower costs in premiums for returning consumers.
    • Nationwide, existing consumers with a new or updated plan selection after ARP saved an average of $67 (or 50%) per consumer per month on premiums, totaling $537 million per month in savings. In twenty states and the District of Columbia, existing consumers saved over $75 per month, on average, due to the ARP.
       
  • 5.8 million more Americans have health insurance today than a year ago. Between 2016 and 2019, 3.6 million Americans lost coverage.
     
  • A family of four is saving an average of $2,400 on their annual premiums. Four out of five consumers could find quality coverage for under $10 a month.
     

Investing in Mental Health:

  • $3 billion invested in expanding access to mental health and substance use services at the state level – largest one-time investment in history for mental health and substance use programs.
     
  • Billions more in American Rescue Plan funding are being used to address mental health challenges affecting our children, including through hiring school social workers and counselors. With the help of American Rescue Plan K-12 funding, schools have already seen a 65% increase in social workers, and a 17% increase in counselors. 

 
Fighting COVID

  • Distributed 200 million vaccines, and millions of therapeutics using ARP dollars.
     
  • 375 million at-home tests per month now available; before ARP, no at-home tests.
     
  • $14.5 billion to address COVID for America’s veterans, including support for 37,000 homeless veterans.

 
Getting Kids Back in School

  • Today, 99% of schools are open. Before ARP, only 46% of schools were open in-person.
     
  • Major Investments in Keeping Schools Open, Combatting Learning Loss & Addressing Mental Health Challenges: Independent experts estimate based on school district plans that 59% of school districts are using ARP funds to hire/retain teachers and counselors, 35% are using ARP funds to hire/retain psychologists and mental health staff, and 52% are using ARP funds for HVAC and ventilation.
     
  • A survey from the School Superintendents Association indicated 82% of superintendents plan to use funds to expand social, emotional, mental and physical health and development.

 
Supporting Working Families

  • Expanded Child Tax Credit for Working Families – Helping Deliver Record Lows in Child Poverty.
    • The 2021 CTC will reach a record nearly 40 million families with 65 million children.
    • Expanded $3,000 credit for kids age 6-17 and $3,600 for kids under 6
    • Experts estimate that the Child Tax Credit was the main driver in the American Rescue Plan bringing child poverty to record lows in 2021– including record low Black and Hispanic child poverty.
       
  • Economic Impact Payments for Vast Majority of Americans
    • Over 170 million Economic Impact Payments to 85% of all Americans – including an additional 19+ million payments to Social Security beneficiaries, 3 million payments to SSI beneficiaries, and 320,000 payments to Veterans who would not have received these benefits under normal tax filing requirements.
       
  • Ensured Kids didn’t go hungry in the summer
    • Estimated 30 million kids fed with first nationwide Summer supplemental nutrition program – more than 10x higher than 2019 summer meals for kids.
       
  • Unprecedented Emergency Rental Relief and Eviction Prevention
    • Over 4 million Emergency Rental Assistance payments to tenants in a single year – by orders of magnitude the largest eviction prevention effort in history.
    • Eviction filings at just 60% of historic averages in 5 months after CDC moratorium – even though some had projected an eviction tsunami.
       
  • More than doubled the amount of LIHEAP – the most ever going to help with Heating and Cooling Costs of well over 5 million households

 
Helping People Get Back to Work

  • Most One-Time Support for Childcare Providers Ever to Keep Them Open and Operating
    • 150,000+ providers supported by childcare stabilization payments so far, the most support for childcare providers ever.
    • More than 5 million children served by these providers.
       
  • Expanded Earned Income Tax Credit for Workers
    • Tripled EITC for 17 million workers without dependent children from $540 to $1500 – first increase since 1993 – and extended the credit to younger & older workers.
    • Helping millions of front-line workers: This expansion will help nearly 1.8 million cashiers and retail salespeople; almost 1 million cooks and food prep workers; and more than 850,000 nurses and health aides, 500,000 janitors, 400,000 truck and delivery drivers, and 300,000 childcare workers.
       
  • Getting Americans Back to Work with State and Local Investments
    • Over half of states and scores of cities across the country have invested in workforce development, apprenticeships, training, and premium pay for essential workers – with premium pay to nearly 750,000 essential workers.
    • State and local governments added 467,000 jobs in 2021 – best year since 2001.

Staying True to Our Veterans:

  • ARP provided resources for veterans currently receiving housing support, including an estimated 37,000 homeless veterans.
     
  • ARP cancelled health care copayment charges for 2.5 million veterans during the pandemic – worth $1 billion.
     
  • ARP Child Tax Credit expansion meant that roughly 5 million children in veteran and Active Duty families are receiving the credit for 2021, per CBPP estimates.
     
  • ARP invested in 16,000 veterans’ health care with ARP funds for 158 State Veterans Homes operations and for State Veterans Home renovations and capital projects.
  • ARP funding is enabling the Veterans Benefits Administration to reduce the claims backlog from 212,000 in March 2021 to 100,000 by September 2022.  

 
Rescuing and Transforming Our Communities:

  • Dozens of cities and 21 states have already committed ARP Fiscal Recovery Funds to public safety, including critical investments in gun crime prevention – hiring and retaining police officers for community policing and investing in critical technology to take on increases in gun and other violent crimes, and supporting evidence-based community violence interventions and summer youth employment.
     
  • State and local, Education and HUD investments in affordable housing and fighting homelessness:
    • ARP Department of Education program to provide services and enable full attendance for students experiencing homelessness will reach 1.5 million children. 
    • ARP added about 70,000 emergency vouchers to the rental market through HUD.
    • ARP funded new housing counseling program which is expected to provide 80,000 housing counseling sessions.
    • Roughly half of cities and states are investing some portion of their State and Local Funds in housing assistance and investments – from New Jersey’s $750 million eviction prevention and utilities program to Austin and Travis County’s $200 million ARP investment in a comprehensive plan to take on its homelessness crisis.
       
  • Broadband Investments underway across the country: 20 states have already invested Fiscal Recovery Funds to expand broadband access – in addition to $10 billion Capital Projects Fund which they can use to help ensure that all communities have access to high quality modern infrastructure needed to access critical services, including broadband.
    • Even with more on the way, states and territories have already announced about $9 billion in ARP investments to expand high speed internet access.
       
  • Long-needed investments in clean water: with 21 states already committing Fiscal Recovery Funds to improve water and sewer infrastructure, including removing lead pipes.
    • Even with more on the way, states and territories have already announced investing $7.5 billion in ARP funds for water and sewer improvements.

Providing Permanent Tax Relief for Puerto Rico Families

  • Made hundreds of thousands of families in Puerto Rico eligible for CTC for first time – previously ~90% of families excluded from CTC.
     
  • First-ever Federal Support for Puerto Rico’s EITC, more than tripling workers’ benefits.

Most support ever for Tribal Communities

  • $32 billion to Tribal communities and Native people, the largest in assistance to tribal governments in history.

FACT SHEET:
How The American Rescue Plan Is Keeping America’s Schools Open Safely, Combating Learning Loss, And Addressing Student Mental Health
 

On March 11, 2021 – one year ago – President Biden signed the American Rescue Plan (ARP) Act into law, an unprecedented $1.9 trillion package of emergency assistance measures. The ARP provides a historic investment in America’s preschool through twelfth grade (P-12) schools in response to the COVID-19 pandemic to keep schools safely open, tackle learning loss and mental health. These funds include $122 billion for P-12 schools in Elementary and Secondary School Emergency Relief (ARP ESSER) funds. ARP also dedicated an additional $8 billion to states and school districts to meet the needs of certain student populations, including over $3 billion for students with disabilities and $800 million for children and youth experiencing homelessness.
 
ARP has already had a significant impact on schools across the country: over the last year, states, school districts, and schools have used these funds to safely reopen and sustain in-person instruction, combat learning loss, and address students’ mental health needs.
 
In his State of the Union address last week, President Biden called on schools to hire more teachers, urged the American people to sign up to be tutors and mentors, and – as part of his unity agenda – encouraged the country to come together to address child mental health. ARP ESSER funds are supporting this agenda in several ways:

  • Schools have gone from 46% open before ARP to 99% safe and open today: Before ARP was signed into law, just 46 percent of America’s P-12 schools were open for full-time, in-person learning. Today, over 99 percent of P-12 schools are open for full-time, in-person instruction.
     
  • ARP led to record growth in local education jobs that are critical to meeting students’ academic and mental health needs: Although there is more work to do to address longstanding educator shortages and return to pre-pandemic levels, ARP has led to record jobs growth in the education sector. With the help of ARP ESSER funding, local governments added more than 279,000 education jobs in 2021 – the best calendar year of jobs growth since records began in 1956 – and added an additional nearly 46,000 jobs in the first two months of 2022. Schools have already seen a 65% increase in social workers and a 17% increase in counselors relative to before the pandemic.
     
  • Analysis of school district plans shows overwhelming majority of funds are being used for priorities like teachers, counselors, academic recovery, mental health, and health and safety measures like ventilation improvements:  FutureEd – an education think tank at Georgetown University’s McCourt School of Public Policy – analyzed data on a representative sample of over 3,000 school districts’ plans covering 55% of ARP ESSER funds. This analysis showed:
    • Nearly 60% of funds are being used to:
      • invest in staffing – both retaining current staff and expanding professional development opportunities, as well as recruiting, hiring and training of new teachers, school staff and mental health professionals to increase school capacity and meet the academic and mental health needs of students;
      • combat learning loss through student support programs such as evidence-based tutoring, expanded after-school and summer learning and enrichment programs, and the purchase of millions of new textbooks and learning materials; and 
      • supporting the physical and mental health of students and educators.
    • Another 24% is being invested in keeping schools operating safely, including providing PPE and updating school facilities to support health and safety. This includes investments in lead abatement and an estimated nearly $10 billion for improvements to HVAC and ventilation.
       
  • ARP has fueled investments in education spending and accelerated the rate of spending of education relief funds by five to six times: Before the passage of ARP, states and school districts were spending a total of a little more than $500 million per month of federal emergency relief funds for education. Since the passage of the ARP and the assurance to states and school districts that critical funds were on their way, the monthly rate of spending of ESSER funds from ARP and earlier relief legislation has accelerated to more than $3 billion per month – an increase of five to six times.
     
  • All 50 states submitted clear spending plans that have been approved by the U.S. Department of Education: On March 24, less than two weeks after ARP was signed, two-thirds of funds – $81 billion – were released. To ensure funds would be used effectively, states had to submit and receive approval on their spending plan to receive their final third of funds. As of December 2021, every state, plus DC and Puerto Rico, submitted a plan, the U.S. Department of Education has approved all plans, and all $122 billion in ARP ESSER funds have been made available to states.
     
  • Survey of 600 school superintendents shows school leaders are meeting the challenge of the President’s unity agenda by using funds for students’ mental health and other developmental needs: The COVID-19 pandemic has subjected many young Americans to social isolation, loss of routines, and traumatic grief – increasing the need for mental health supports. A recent survey by AASA, The School Superintendents Association, found that 82% of districts plan to use funds to address this need by expanding supports for social, emotional, mental, and physical health and development.
     
  • States and school districts have deployed funds strategically while engaging meaningfully with their communities – including parents: In developing their spending plans, states and school districts were required to engage members of the community, including parents, educators, students, representatives of students with disabilities and others. The U.S. Department of Education continues to encourage states and school districts to consult with these critical partners on how to ensure these funds have the most impact in classrooms.

ARP ESSER-Funded State and District Activities
From the U.S. Department of Education
 
Safely Reopening Schools and Sustaining Safe Operations
Safely reopening schools and keeping them open safely are essential for student learning and well-being. 

  • Houston Independent School District (HISD) in Texas has allocated ARP ESSER funds to campuses for COVID-19 mitigation efforts. HISD has provided COVID-19 testing at 90 percent of its campuses and has hosted nearly 100 vaccine clinics.
     
  • The DeKalb County School District in Georgia upgraded air filters from MERV 8 to MERV 13 in every school facility that could accommodate that size filter and took steps to improve ventilation in all other schools using ARP ESSER funding.
     
  • White Plains City School District in New York will use a combination of local and federal funds to replace the HVAC units across their district to provide a safer learning environment for students and staff. Upon completion, the total project will cost $26.3 million, with nearly one-third of the funding coming from relief funds, including ARP ESSER.

Combating Learning Loss
States and school districts have the resources they need, and are required to address the impacts of the pandemic on students’ learning. States and districts nationwide are using funds to hire teachers and other instructional staff, launch tutoring, summer and afterschool programs (which states are required to fund), and make long-overdue investments in instructional materials. States are specifically required to address the needs of students disproportionately impacted by the pandemic, including students with disabilities, English learners, and students experiencing homelessness.
 
Recruiting, Retaining, and Expanding Professional Development of Staff:

  • Maine School Administrative District 11 is addressing gaps in learning opportunities by using ARP ESSER funds to hire nine new teachers and implement a new math, language arts, and social studies program. The additional teachers permitted the district to reduce class sizes from 22-24 students to an average of 14-16 students. The district has provided external and internal coaching, ongoing professional learning, and additional support to educators and staff.
     
  • Gaston County Schools in North Carolina is adding an additional teacher and a temporary employee per school to decrease class sizes, help manage workloads and provide classroom coverage in each of its 54 schools using ARP ESSER funding. This supports and helps retain current teachers, who are less likely to have to give up planning time to cover another classroom, or combine classrooms, and also benefits students whose learning is less likely to be disrupted by the absence of another teacher.
     
  • The Asheville City Schools Board of Education in North Carolina is using ARP ESSER funds for a bonus of $3,000 to $3,500 over the course of the year for full-time teachers and faculty in order to increase staff retention.
     
  • Providence Public School District in Rhode Island is launching new incentives to recruit and retain highly-qualified educators, including early signing bonuses for newly-hired educators and support staff in hard-to-fill positions using  ARP ESSER funding.

Summer Learning and Enrichment:  

  • In New Mexico, the College and Career Readiness Bureau of the New Mexico Public Education Department launched the Summer Enrichment Internship Program in 2021 using ARP ESSER funding. The program covers the cost of summer internships for New Mexico high school students and provides high school students, particularly those most impacted by the pandemic, with the opportunity to participate in high-quality internships in government agencies, including county, tribal, and municipal placements. Over 300 community partners and 1,200 student interns participated across 26 counties. Summer jobs programs like these that engage students are also important community violence intervention strategies. This program will continue in the summer of 2022 as well.
     
  • Cleveland Metropolitan School District in Ohio used ARP ESSER funds to increase summer learning participation seven-fold. In 2021, 8,400 students participated in summer school, compared to 1,000-1,200 students in previous years. Focused on “Finish, Enrich, and Engage,” the expanded summer school offered 12 weeks of programming that allowed for credit accumulation and unfinished learning. Students engaged in problem-based learning units in the morning with engagement activities like clubs and sports in the afternoon. This inclusive programming, which included students with disabilities and multilingual learners, will continue in summer 2022.
     
  • The Oklahoma State Department of Education is using ARP ESSER funds to implement evidence-based summer learning and enrichment programs and to expand afterschool programming through partnerships with community organizations. They provide for social, emotional, and academic support and access to technology. This initial investment of $6 million provided services through 28 organizations, at 140 sites, serving an average 11,000 students a month through the summer of 2021.

Tutoring: 

  • The Arkansas Division of Elementary and Secondary Education has established the Arkansas Tutoring Corps using ARP ESSER funding. The Arkansas Tutoring Corps program includes recruitment, preparation, and support for candidates to become qualified tutors to provide instruction or intervention to meet the academic needs of students most impacted by lost instructional time. A system connects prepared candidates with organizations seeking to support students’ academic needs. The program is already enhancing learning experiences of students due to loss of instructional time and addressing gaps in foundational skills in mathematics and literacy.

 
Meeting Students’ Social, Emotional, and Mental Health Needs
Districts and states must use a portion of ARP ESSER funds for evidence-based interventions that respond to students’ social, and emotional needs – such as the ability to collaborate with others or persist through difficult challenges – and to support students’ mental health. Districts must specifically address the impact of the pandemic on groups of students that were disproportionately impacted. 
 
Hiring Counselors and Increasing Supports:

  • The Kansas Department of Education has developed a Grow Your Own Counselor model with ARP ESSER funding that encourages districts to identify candidates and employ them as student services coordinators while they develop their skills in an approved school counseling graduate program.
     
  • The Nevada Department of Education has allocated $7.5 million to support districts in hiring 100 additional school based mental health professionals. Using ARP ESSER funding, the state is spending $1.7 million to hire a Multi-Tiered Systems of Support coach for every district.
     
  • Plymouth-Canton Community Schools in Michigan hired three full-time high school counseling staff to decrease counselor caseloads with ARP ESSER funding. Counselors are now able to dedicate more time to individual student meetings, attend meetings with assistant principals and deans to review academic progress and other needs of students, and develop a wellness center at each campus.

Community Schools:

  • The New York City Department of Education announced an investment of $10 million to expand the district’s research-based community schools initiative from 266 to 406 sites citywide using ARP ESSER funding. These schools provide integrated student support services to students and the surrounding community, such as mental health care, adult education courses, community violence intervention programs, and nutrition support.

Strengthening the Educator Workforce
The pandemic has taken a toll on the nation’s educators as well as its students. States and districts should support and stabilize the educator workforce and make staffing decisions that will help address students’ social, emotional, mental health, and academic needs. 

  • The Tennessee Department of Education has created a “Grow Your Own” grant with federal funding, including ARP ESSER, that is designed to foster partnerships between educator preparation programs (EPPs) and districts to provide promising and innovative, no-cost pathways to the teaching profession by increasing EPP enrollment and growing the supply of qualified teachers. The program is currently comprised of 65 partnerships between 14 EPPs and 63 districts across the state – enabling over 650 future educators to become a Tennessee teacher for free. $6.5 million has been allocated to this program thus far. Tennessee also pioneered a pathway with the U.S. Department of Labor by establishing the nation’s first registered apprenticeship program for teachers, which will help sustain the state’s Grow Your Own programs and partnerships leveraging federal apprenticeship funding.  
Biden Administration, Economy, Financial Protection, Joe Biden, National Security, President Joe Biden

Biden Signs Executive Order Ensuring Responsible Innovation in Digital Assets, Crytpocurrencies

Outlines First Whole-of-Government Strategy to Protect Consumers, Financial Stability, National Security, and Address Climate Risks

President Biden signed an Executive Order outlining the first ever, whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology. The Order lays out a national policy for digital assets across six key priorities: consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation (c) Karen Rubin/news-photos-features.com via msnbc.

Digital assets, including cryptocurrencies, have seen explosive growth in recent years, surpassing a $3 trillion market cap last November and up from $14 billion just five years prior. Surveys suggest that around 16 percent of adult Americans – approximately 40 million people – have invested in, traded, or used cryptocurrencies. Over 100 countries are exploring or piloting Central Bank Digital Currencies (CBDCs), a digital form of a country’s sovereign currency.

[My personal belief is that Russian oligarchs, looking for places to stash their billions, had something to do with the run-up in value. The administration stated that “the use of cryptocurrency we do not think is a viable workaround to the set of financial sanctions we’ve imposed across the entire Russian economy and, in particular, to its central bank,” but that does not take into account purchases that might have been made before sanctions were imposed, or these new protections. A request for comment was unanswered.]

The White House provided this fact sheet detailing Biden’s whole-of-government strategy to protect consumers, financial stability, national security and address climate risks posted by digital assets: –Karen Rubin/news-photos-features.com
 
The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk. The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system, and the climate. And, it must play a leading role in international engagement and global governance of digital assets consistent with democratic values and U.S. global competitiveness.
 
That is why President Biden signed an Executive Order outlining the first ever, whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology. The Order lays out a national policy for digital assets across six key priorities: consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.

Specifically, the Executive Order calls for measures to:

  • Protect U.S. Consumers, Investors, and Businesses by directing the Department of the Treasury and other agency partners to assess and develop policy recommendations to address the implications of the growing digital asset sector and changes in financial markets for consumers, investors, businesses, and equitable economic growth. The Order also encourages regulators to ensure sufficient oversight and safeguard against any systemic financial risks posed by digital assets.
     
  • Protect U.S. and Global Financial Stability and Mitigate Systemic Risk by encouraging the Financial Stability Oversight Council to identify and mitigate economy-wide (i.e., systemic) financial risks posed by digital assets and to develop appropriate policy recommendations to address any regulatory gaps.
     
  • Mitigate the Illicit Finance and National Security Risks Posed by the Illicit Use of Digital Assets by directing an unprecedented focus of coordinated action across all relevant U.S. Government agencies to mitigate these risks. It also directs agencies to work with our allies and partners to ensure international frameworks, capabilities, and partnerships are aligned and responsive to risks.
     
  • Promote U.S. Leadership in Technology and Economic Competitiveness to Reinforce U.S. Leadership in the Global Financial System by directing the Department of Commerce to work across the U.S. Government in establishing a framework to drive U.S. competitiveness and leadership in, and leveraging of digital asset technologies. This framework will serve as a foundation for agencies and integrate this as a priority into their policy, research and development, and operational approaches to digital assets.
     
  • Promote Equitable Access to Safe and Affordable Financial Services by affirming the critical need for safe, affordable, and accessible financial services as a U.S. national interest that must inform our approach to digital asset innovation, including disparate impact risk. Such safe access is especially important for communities that have long had insufficient access to financial services.  The Secretary of the Treasury, working with all relevant agencies, will produce a report on the future of money and payment systems, to include implications for economic growth, financial growth and inclusion, national security, and the extent to which technological innovation may influence that future.
     
  • Support Technological Advances and Ensure Responsible Development and Use of Digital Assets by directing the U.S. Government to take concrete steps to study and support technological advances in the responsible development, design, and implementation of digital asset systems while prioritizing privacy, security, combating illicit exploitation, and reducing negative climate impacts.
     
  • Explore a U.S. Central Bank Digital Currency (CBDC) by placing urgency on research and development of a potential United States CBDC, should issuance be deemed in the national interest. The Order directs the U.S. Government to assess the technological infrastructure and capacity needs for a potential U.S. CBDC in a manner that protects Americans’ interests. The Order also encourages the Federal Reserve to continue its research, development, and assessment efforts for a U.S. CBDC, including development of a plan for broader U.S. Government action in support of their work. This effort prioritizes U.S. participation in multi-country experimentation, and ensures U.S. leadership internationally to promote CBDC development that is consistent with U.S. priorities and democratic values.

The Administration will continue work across agencies and with Congress to establish policies that guard against risks and guide responsible innovation, with our allies and partners to develop aligned international capabilities that respond to national security risks, and with the private sector to study and support technological advances in digital assets.

Biden Administration, Economic Policies, Economy, Gender Equity, News & Photo Features

On Equal Pay Day, Biden-Harris Administration Commit to Support Women’s Economic Security

On Equal Pay Day, the White House is announcing critical steps the Biden-Harris Administration is taking to advance pay equity and promote women’s economic security. President Biden and Vice President Harris have long championed equal pay as a cornerstone of their commitment to ensuring all people have a fair and equal opportunity to get ahead. New actions promote women’s employment and support working families across the country © Karen Rubin/news-photos-features.com
 

This Equal Pay Day, the White House is announcing critical steps that the Biden-Harris Administration is taking to advance pay equity and promote women’s economic security.
 
President Biden and Vice President Harris have long championed equal pay as a cornerstone of their commitment to ensuring all people have a fair and equal opportunity to get ahead. Closing gender and racial wage gaps is essential to building an equitable economy and addressing the barriers that have long hampered women from fully participating in the labor force. But we still have work to do. In 2020, the average woman working full-time, year-round earned 83 cents for every dollar paid to their average male counterpart.  Compared with the average man working full-time, year-round, disparities are even greater for Black women, Native American women, and Latinas, as well as certain subpopulations of Asian women.
 
This Equal Pay Day, the Vice President is hosting a virtual summit, bringing together partners across the country who are taking critical steps to tackle pay discrimination, create good-paying jobs, and support families’ access to care.

Yesterday, the President published a proclamation on Equal Pay Day. The President stated “Equal pay is a matter of justice, fairness, and dignity — it is about living up to our values and who we are as a Nation.’  (Read and share the full proclamation here: A Proclamation on National Equal Pay Day, 2022 | The White House)

Today, the Biden-Harris Administration is announcing new actions to promote women’s employment and support working families across the country. These actions will:
 
• Advance pay equity for the Federal workforce.  The Office of Personnel Management announced that they anticipate issuing a proposed regulation that will address the use of prior salary history in the hiring and pay-setting process for Federal employees, consistent with the President’s Executive Order on Diversity, Equity, Inclusion, and Accessibility in the Federal Workforce.  Banning the use of prior salary history can help break the cycle of past arbitrary and potentially discriminatory pay that can follow women and workers of color from job to job, entrenching gender and racial pay gaps over time. 
 
• Promote efforts to achieve pay equity for job applicants and employees of Federal contractors. President Biden will sign an Executive Order directing the Federal Acquisition Regulatory Council to consider enhancing pay equity and transparency, including by limiting or prohibiting federal contractors from seeking and considering information about job applicants’ and employees’ existing or past compensation when making employment decisions, and appropriate accountability measures.  The Department of Labor will consult with the FAR Council on the efficiency, economy, and effectiveness in Federal contracting that would be promoted by potential regulatory changes, and the most effective implementation strategy for any subsequent rulemaking.
 
• Strengthen pay equity audits by Federal contractors. The Department of Labor’s Office of Federal Contract Compliance Programs issued a new directive clarifying federal contractors’ annual obligation to analyze their compensation practices.  Conducting these pay equity audits helps address and prevent pay disparities based on gender, race, or ethnicity.
 
• Ensure equitable access to good-paying jobs. The Department of Labor issued a report analyzing the impact that women’s concentration in low-wage sectors – and their relative underrepresentation in many good-paying occupations – has on their overall economic security and gender and racial wage gaps. The report finds that, in 2019, Black women lost $39.3 billion and Hispanic women lost $46.7 billion in wages compared to white men due to differences in industry and occupation. This segregation intensified the COVID-19 pandemic’s disproportionate impact on women, in part due to the overrepresentation of women in hard-hit industries such as hospitality.  
 
• Address discrimination against caregivers.  Yesterday, the Equal Employment Opportunity Commission published technical assistance on caregiver discrimination, addressing the circumstances under which discrimination against applicants and employees based on pandemic-related caregiving responsibilities may violate federal employment discrimination laws.
 
The actions announced today build on steps the Administration has taken to advance pay equity, including:
 
• Provided immediate relief through the American Rescue Plan (ARP) to millions of women who have borne the brunt of the pandemic.  This work includes: standing up a historic vaccination program that has fully vaccinated more than 215 million Americans; reopening schools; providing direct payments to individuals; expanding nutrition programs for families; providing paid leave tax credits for small and midsize employers; distributing the majority of emergency rental assistance to female-headed households; and expanding the Child Tax Credit, which last year helped reduce child poverty to its estimated lowest level in recorded American history.
 
• Helped keep child care providers open and boosted pay for child care workers. States have already delivered American Rescue Plan stabilization grants to more than 150,000 child care providers serving more than 5 million children and their families. One survey finds that 92% of providers receiving funds relied on them to help stay open and nearly half used them to repay debt incurred during the pandemic. Many states also used funds to help boost compensation of the child care workforce. For example, Minnesota is requiring providers to increase compensation, while North Carolina and Connecticut offered bonus payments to providers who increased compensation of the workforce. Increasing compensation for child care workers helps narrow gender and racial pay gaps, as more than nine in ten are women and more than four in ten are women of color. While ARP funds allowed child care programs to provide temporary bonuses, they need long-term funding as the President has proposed to sustainably increase wages.
 
• Provided tax relief to help families with child care costs during the pandemic by delivering a historic increase in the Child and Dependent Care Tax Credit (CDCTC) to support millions of working families this tax season. The ARP increased the maximum CDCTC for a median income family with two children under age 13 by more than sixtimes—providing up to $8,000 towards child care expenses in 2021. It will reimburse most families for up to half of their child care expenses. And the ARP CDCTC is fully-refundable, helping lower-income parents fully benefit regardless of their tax liability. Even before the pandemic, families struggled to afford child care, forcing parents and especially mothers to forego higher paying jobs, work fewer hours, or take time out of the workforce, leading to lower pay over their career. The President has urged Congress to pass his plan for child care, which could lower child care costs for nine in ten families with young children.
 
• Increased the minimum wage to $15 per hour for Federal workers and contractors, benefiting many women and people of color. The President issued Executive Orders directing the Administration to work toward ensuring that employees working on federal contracts and federal employees earned a $15 per hour minimum wage. Those directives went into effect in January, raising the wages of about 370,000 federal employees and employees of federal contractors. In addition to helping the government do its work more efficiently, these directives take a step towards narrowing racial and gender disparities in income, as many low-wage workers are women and people of color. The order also eliminates the subminimum wage for workers with disabilities. The President has called on Congress to raise the federal minimum wage to $15 an hour, so that American workers can have a job that delivers dignity, and to make greater strides towards pay equity.
 
• Signed into law the Bipartisan Infrastructure Law.  Administration investments through this law will increase access to good-paying jobs, including for women, people of color, and members of other communities who are currently underrepresented in the sectors where these jobs will be created, such as transportation, clean energy, and broadband.  The Department of Transportation and the Department of Labor signed a memorandum of understanding to promote the creation of good infrastructure and transportation jobs with a focus on equitable workforce development using funding from the Bipartisan Infrastructure Law.
 
• Issued an Executive Order to promote diversity, equity, inclusion, and accessibility across the federal government – the nation’s largest employer – including by prioritizing efforts to close gender and racial wage gaps, address workplace safety and harassment, including in our national security workforce, and advance equity for LGBTQI+ public servants.
 
• Issued an Executive Order on Promoting Competition in the American Economy. This established the Administration’s policy of addressing anticompetitive behavior in labor markets, which can fall heavily on women and workers of color. The Order includes specific initiatives to promote competition in labor markets, including encouraging the Federal Trade Commission (FTC) to ban or limit non-compete agreements, and encouraging the FTC and the Department of Justice to strengthen antitrust guidance to prevent employers from collaborating to suppress wages or reduce benefits by sharing wage and benefit information with one another.

The White House Equal Pay Day Summit
Tuesday, March 15, 2022 | 3pm ET 
Watch live here:  https://www.whitehouse.gov/live/

 Stay Connected  
Follow The White House Gender Policy Council on Twitter 
https://twitter.com/WhiteHouseGPC

Biden Administration, Economy, Joe Biden, President Joe Biden

What’s Behind President Biden’s Remarks on the Economy in his First State of the Union Address

President Joe Biden with Vice President Kamala Harris and Speaker Nancy Pelosi at his Speech to the Nation in 2021 © Karen Rubin/news-photos-features.com via msnbc.

With the Russian invasion of Ukraine likely to take up a large measure of President Joe Biden’s first State of the Union speech, he is unlikely to have enough time or space to detail his accomplishments and his agenda going forward. Here are more details from the White House about what the President will say about the economy:

President Biden ran for office with a new economic vision: to grow the economy from the bottom up and the middle out, not the top down. On Tuesday, the President will make a strong case that the Biden-Harris economic strategy is producing historic results, and lay out his plan to tackle the economic challenges ahead. He will underscore that during his first year in office, due in large part to the American Rescue Plan, entrepreneurship and business investment rebounded, the economy achieved its fastest job growth in American history, the fastest economic growth in nearly 40 years, and a faster recovery than every other advanced economy. And, he will emphasize that this progress is occurring amidst an historic shift from the old, outdated trickle-down approach to one that centers on workers, families, and small businesses.
 
During his first State of the Union Address, the President will also make clear that there is more work to do to rebuild the economy towards resilience, security, and sustainability. Too many families continue to feel the squeeze of higher costs. The President will make clear that price increases that become entrenched are pernicious, and eat away at the economic progress the country is making. The President will lay out his plan to lower costs for American families while continuing an historically strong economic recovery by:

  1. Making more things in America, strengthening our supply chains, and moving goods faster and cheaper;
     
  2. Reducing the cost of everyday expenses working families face and reducing the deficit;
     
  3. Promoting fair competition to lower prices, help small businesses thrive, and protect consumers; and
     
  4. Eliminating barriers to good-paying jobs for workers all across America.

 
Making more things in America, strengthening our supply chains, and moving goods faster and cheaper:
President Biden will make clear that he believes one of the best ways to lower costs over the long run is to increase the productive capacity of our economy—put simply, to make more things in America with more American workers contributing and earning a good living. He will describe the emerging manufacturing comeback, with American companies betting on America again because of the Administration’s commitment to domestic industrial revitalization and technological development. He will note that in just the last year, the economy added 375,000 manufacturing jobs and companies announced nearly $200 billion in investments for semiconductor, electric vehicle, battery, and critical mineral production and manufacturing in the United States. He will recount how Intel recently announced a new $20 billion factory outside of Columbus, Ohio that will create 7,000 construction jobs and another 3,000 permanent jobs – another sign of the strength of the American economy.
 
President Biden will also announce specific goals for implementation of his landmark Bipartisan Infrastructure law (BIL), a once-in-a-generation investment in our nation’s economic competitiveness that will strengthen supply chains and move goods to market faster and more efficiently, encouraging more companies to choose America. Over the next year:
 

  • States, territories, Tribes and local governments will start to improve 65,000 miles of roads and 1,500 bridges with federal funding, representing a 44% and 50% increase respectively from average annual improvement levels over the past six years.
     
  • The Federal Aviation Administration will be able to invest in over 600 airport infrastructure projects, including preserving 400 pavement projects on taxiways and runways.
     
  • Communities will invest in an estimated 15,000 new buses, ferries and subway cars, improving commutes for working Americans, families, and students across the country and reducing greenhouse emissions.
     
  • The U.S. Army Corps of Engineers will advance over 500 projects across 52 states and territories to strengthen supply chains, improve waterways, and reduce flooding.
     
  • The Environmental Protection Agency will work with state and local governments to fund more than 400 new water projects from replacing lead service lines to improving drinking water systems.
     
  • States, Tribes, and other partners will use BIL funds to reclaim over 15,000 acres of abandoned mine lands, as well as launch new reclamation efforts that will ultimately address tens of thousands of additional acres across the country.
     
  • The Interior Department’s new Orphan Well Program will start work plugging, capping, and remediating over 8,000 abandoned oil & gas well sites in communities across the country.
     
  • The Interior Department will increase its work to reduce the risk of wildfires to communities by more than 30 percent – removing over 300,000 acres of burnable fuels in the places where communities and wildlands meet – as well as the start of work to reduce wildfire risk on an additional 250,000 acres across the country.
     
  • The Department of Energy will take steps to launch a first-of-its kind $140 million demonstration facility to extract and separate rare earth elements and other critical minerals from coal ash, mine tailings, acid drainage, and other legacy fossil fuel waste to sustainably produce materials key to next-generation clean energy technologies.
     
  • The Department of Energy will make available nearly $3 billion to bolster domestic manufacturing of advanced batteries for electric vehicles and energy storage.
     

To build on these investments and spur more private-sector investment in the United States, the President will also call on Congress to send him bipartisan competitiveness legislation like the COMPETES and USICA bills that have passed the House and the Senate to invest in innovation, manufacturing, and economic development capacity across all of America so America can outcompete China and the rest of the world in the industries of the future.
 
Reducing the cost of everyday expenses working families face:
President Biden will call on Congress to send him legislation that lowers costs of everyday expenses working families face and lowers the deficit by rewarding work, not wealth. He will lay out specific, practical measures that would reduce costs for families right now, including prescription drug costs and health care premiums, child care and pre-k costs, and energy costs. He will point to the other ideas he has proposed on areas ranging from housing to care for seniors and people with disabilities to higher education affordability to direct tax relief for families. These efforts build on the support provided in the American Rescue Plan that has helped reduce the cost of health care, helped more than 5000 universities and community colleges make higher education more affordable, made work pay better for low-income workers through an expanded Earned Income Tax Credit, and provided historic middle class tax relief for tens of millions of working families through an expanded Child Tax Credit.
 
The President will make clear that we can lower costs while lowering the deficit by rewarding work, not wealth. He will outline proposals to make sure corporations and the wealthiest Americans pay their fair share, while making clear that no one making under $400,000 a year should see their taxes increased.
 
The President will call on Congress to send him a bill that lowers costs and lowers the deficit without delay. American families need relief from higher costs, and they need it now.

Promoting fair competition to lower prices, help small businesses thrive, and protect consumers:
President Biden will explain that we can also lower costs by promoting fair competition in the U.S. economy. The Administration has taken decisive actions in the first year to stop the trend of corporate consolidation, increase competition, and deliver concrete benefits to America’s consumers, workers, farmers, and small businesses. He will also announce new actions the Biden-Harris Administration is taking this year to tackle some of the most pressing competition and consumer protection problems across our economy. Specifically, he will announce new steps to:
 

  • Lower consumer prices and level the playing field for American businesses in ocean shipping. The President will explain that most traded goods—everything from the housewares you buy online to the agricultural products that American farmers market overseas—are transported by oceangoing vessels. However, the ocean shipping industry is now dominated by just a small number of giant, foreign-owned companies. Three global alliances—groups of ocean carriers that work together—now control 80% of global container ship capacity and 95% on the critical East-West trade lines. And, since the beginning of the pandemic, these carriers have been increasing shipping costs through higher rates and fees. The President will note that the foreign carriers are now seeing record profits, while prices for American consumers and businesses have risen. To combat this problem, the President will announce steps to lower consumer prices and level the playing field for American businesses in ocean shipping, including launching a new Federal Maritime Commission and Department of Justice initiative to promote competition in the ocean freight transportation system. He will also note that the Federal Maritime Commission is ramping up its oversight of the global shipping industry to address complaints about the unfair fees the carriers charge to American businesses. Read the full Biden-Harris Plan to Lower Consumer Prices and Level the Playing Field in Ocean Shipping here.
     
  • Protect seniors and other nursing home residents by cracking down on unsafe nursing homes. The President will explain that while the federal government spends tens of billions of taxpayer dollars on nursing homes annually, these federal funds too often flow to nursing homes with bad track records and dangerous conditions. He will explain that 200,000 residents and staff in nursing homes have died from COVID-19, representing nearly 23% of all COVID-19 deaths in the United States. He will also stress that despite well-documented, widespread health and safety violations, there has been little or no accountability. To protect seniors and crack down on unsafe nursing homes, President Biden will call on Congress to provide nearly $500 million to CMS Survey and Certification, a 24% increase, to support health and safety inspections at nursing homes. He will also announce that the Biden-Harris Administration will, among other new initiatives, establish a new minimum staffing ratio to protect residents, expand penalties for poor performing nursing homes and beef up scrutiny, improve transparency and Americans’ ability to comparison shop for the best home, strengthen value-based payment to ensure taxpayers pay for quality care, and continue to provide COVID-19 testing and vaccinations at nursing homes across the country. Read the full Biden-Harris Plan to Protect Seniors by Cracking Down on Unsafe Nursing Homes here.

Eliminating barriers to good-paying jobs for workers all across America:
President Biden will reflect on one of the strongest labor market recoveries in American history. Specifically, the President will note that during his first year in office, the economy added more than 6.6 million jobs; the unemployment rate fell at its fastest pace on record; the number of number of workers filing for unemployment insurance declined by more than 70 percent; and millions of Americans have entered and reentered the labor force, with the largest increase in the labor force participation rate in more than 25 years. He will highlight the important role that the American Rescue Plan played in positioning employers to hire and workers to rejoin the labor force and find higher quality jobs. Earlier this year, he directed the Secretary of Labor to work with states to reinstate work search requirements for unemployment insurance recipients.

To further our economic recovery and increase the productive capacity of our economy, the President will announce his Administration’s plan to ensure everyone who wants to work should have the opportunity to find a high-quality job. Specifically, he will express his support for:
 

  • Enacting the Protecting the Right to Organize Act. President Biden will express his firm belief that every worker in every state must have a free and fair choice to organize or join a union, and the right to bargain collectively with their employer, without fear of intimidation, coercion, threats, and anti-union propaganda. He will reiterate that the middle class built America and unions built the middle class. And, he will emphasize that empowering workers is central to the Biden-Harris strategy to grow our economy from the bottom up and the middle out. The President will call on Congress to pass the Richard L. Trumka Protecting the Right to Organize (PRO) Act and the Public Service Freedom to Negotiate Act, ensuring that more private-sector workers and many more public-sector workers nationwide have a genuine right to organize and bargain collectively.
     
  • Expanding skills-based hiring and increasing access to registered apprenticeships and training. President Biden will reiterate his commitment to creating pathways to the middle class for all Americans. He will stress that millions of Americans without a college degree are needlessly disadvantaged in the pursuit of good jobs, even when they have the skills and knowledge employers need. To support skills-based hiring, President Biden will announce that his Administration will explore using federal and procurement dollars to by hire based on skills rather than educational qualifications alone, , including through boosting hiring of people from Registered Apprenticeships and labor-management partnership training programs. Additionally, the Administration remains committed to strengthening the pipeline for more underserved communities to access these opportunities. As an example, the Administration has supported and increased access to quality trucking jobs by expanding Registered Apprenticeship programs for drivers; and developing more seamless paths for veterans and underrepresented communities, such as women, to access good driving jobs. He will state that the Administration is supporting and challenging employers to move towards skill-based hiring, including through a new budget proposal to invest in skills-based hiring research tools and technical assistance. This effort builds on the American Rescue Plan’s critical workforce investments in the past year – with more than half of states already committing Fiscal Recovery Funds to training and apprenticeships and efforts to hire and retain critical workers – and catalyzing investments in place-based regional workforce strategies through the Commerce Department’s Good Jobs Challenge.
  • Expanding programs in high-demand fields at Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), and Minority-Serving Institutions (MSIs). President Biden will explain that research has found that HBCUs, TCUs, and MSIs are vital to helping underrepresented students achieve economic mobility, including in STEM fields. However, he will also stress that these institutions have significantly fewer resources than other top colleges and universities, undermining their ability to grow and support more students. To address this persistent problem, and building on the progress made by the American Rescue Plan providing the largest investment through the Department of Education ever in these institutions, the President will call on Congress 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).
     
  • Providing up to more than $2,000 in additional assistance to low-income students by increasing the Pell Grant award. President Biden will note that broad access to education beyond high school is increasingly important for economic growth and competitiveness in the 21st century, but also remind us that higher education has become unaffordable for too many families. Over 6 million students depend on Pell Grants to finance their education, yet the amount of money in these grants has not kept up with the rising cost of college and DREAMers still do not have access. During his State of the Union Address, President Biden will call on Congress to increase the maximum Pell Grant award by more than $2,000.
     
  • Supporting paycheck fairness. President Biden will note that women in the U.S. who work full-time, year-round are paid only 83 cents for every dollar paid to their male counterparts, on average. He will also express his belief that ensuring equal pay is essential to advancing America’s values of fairness and equity as well as our economic strength here at home and our competitiveness abroad. President Biden will use his State of the Union Address as an opportunity to call on Congress to pass the Paycheck Fairness Act, which will take important steps towards the goal of ending pay discrimination.
     
  • Raising the minimum wage to $15 per hour. President Biden will recount that 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. The President will express his belief that hard-working Americans deserve sufficient wages to put food on the table and keep a roof over their heads, without having to work multiple jobs. The President already issued executive actions to ensure 370,000 federal employees and employees of federal contractors are paid a minimum of $15 per hour – because investing in workers also makes employers, including the government, work better and faster. The President will call 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 have a little breathing room and provide opportunity for their families.
     
  • Creating a national comprehensive paid family and medical leave program. President Biden will stress that nearly four of five private sector workers – and 90 percent of the lowest wage workers – have no access to paid family leave, which is a critical input for economic growth and competitiveness in the 21st century. He will call on Congress to pass comprehensive paid family and medical leave legislation so millions of American workers can take time to bond with a new child, care for a seriously ill loved one or heal from their own serious illness.
Biden Administration, Economic Development, Economic Policies, Economy, Jobs, Joe Biden

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

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

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

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



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

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

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

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

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

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

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

Biden Administration, Economic Policies, Economy, News & Photo Features

White House Memo: How Biden Administration is working to Relieve Inflation Pressures on American Families

President Biden’s Build Back Better investment in EV charging stations will go far to help relieve pressure of gas prices at the pump, while installing the stations will provide jobs © Karen Rubin/news-photos-features.com

This is a memo from Kate Bedingfield, White House Communications Director, on what President Biden and his administration is doing to relieve inflation pressure hitting America’s families and why, though a President has limited tools to push back against inflation, his Build Back Better agenda, which would relieve cost-pressure of health care, child and elder care, prescription drug costs, and even gasoline prices by moving toward a clean, renewable energy economy, would be just the prescription needed now:

President Biden grew up in Scranton around a kitchen table just like the ones all over this country. He knows that any increase in prices can squeeze a family’s budget. No family should ever have to feel like they face a choice between paying their bills to keep the lights on or putting food on the table for their families.

Price increases have been a real challenge here at home and around the world as we exit this once-in-a-pandemic and as the economy reboots from a historic shutdown. Even as we see signs that our economic recovery is making process, addressing high prices are the President’s top priority. That’s why this summer, the President began highlighting the cost cutting benefits of the Build Back Better Act.

The memo below outlines where we are in our recovery, what the President is doing in the short- and long-term to address price increases, and the opposition that Congressional Republicans are presenting.

STATE OF PLAY

Since taking office at the time of the worst global economic crisis in decades, President Biden has made beating the pandemic and building a strong economic recovery his top priority. There are two indicators that signal the state of play with the progress of our recovery: jobs and prices.

This past week, we got additional proof that our jobs recovery is on track, setting records, and outpacing other countries. Unemployment insurance claims fell to their lowest level in 50 years. Nearly six million Americas are back to work. And, Americans have more money in their pockets than this time last year — $100 more each month than last year.

But even as America’s economic growth is stronger than virtually any other nation, the President believes that we have to decrease prices for consumer to feel confident in our recovery. While we are starting to see prices decrease and supply chain blockages ease, we know that higher prices are top-of-mind for Americans – and that’s why the President is laser-focused on taking action.

SWIFT ACTION & PROGRESS TO DATE

President Biden is taking swift and decisive action to combat high prices, ease inflationary pressures, and make sure America’s families can put food on the table. In recent weeks and days, President Biden has:

Address Supply Chain Challenges: President Biden is bringing together public and private partners to ease bottlenecks at America’s ports – making sure we can move goods from ship to shelf faster and lower the costs of goods. The President announced that the Ports of Los Angeles and Long Beach are operating 24/7, the Department of Transportation provided $8 million to the Port of Savannah to set up container yards in Georgia and North Carolina, freeing up dock space and speeding up the flow of goods in and out of the port; and yesterday DOT awarded $12.6 million to marine highway projects to help move agricultural goods to market faster.

As a result of the President’s aggressive action, new data yesterday confirms the cost of shipping a container between Asia and the West Coast is more than 25 percent lower than it was three months ago. And this holiday season, America’s major retailers and small businesses – including Target, Walmart, and Esty – have said their shelves will be stocked.

And, as a result of the work of the Biden Administration’s effort to ensure U.S. auto companies received fair allocation of the global supply of chips and to minimize pandemic-related disruptions to semiconductor production in SE Asia, companies like Ford and GM have hailed progress and said they expect car supply will increase. 

Tackling Gas Prices: President Biden sent a letter to the Federal Trade Commission (FTC) expressing concern around oil and gas companies manipulating the marketing and asking the commission to examine any anti-competitive or illegal conduct. He also announced the largest-ever release from the U.S. Strategic Petroleum Reserve with other nations, helping bring down gas prices in the near-term.

Since the President raised the prospect of taking action to address energy prices, oil prices are down 10% on average over the last month versus the month before. Retail gas prices are down 7 cents over the last month and whole sale gas prices are down by 15% from their October peak. Pump prices in 20 states are now lower than the 20 year average, adjusted for inflation. Natural gas prices have fallen 25% from their November average.

Encouraged Competition: President Biden issued an executive order to lower prices for American consumers by increasing competition in various industries. Just a few examples of the President’s executive actions on competition include: investing in smaller meat processors to give farmers and ranchers more affordable options, lowering the cost of hearing aids by making them more accessible, and lowering the cost of broadband.

The meat price increases we are seeing are not just the natural consequences of supply and demand in a free market — they are also the result of corporate decisions that take advantage of consumers, farmers and ranchers, and our economy. Gross profit margins for big meat processors are up 50% and net margins are up over 300%. That’s why the President is investing hundreds of millions of dollars to create more competition in meat-processing and over a billion dollars in relief to small businesses and agricultural workers hurt by COVID. Just yesterday, USDA announced investments in small meat processors to give producers more options, help bring competition to the meat-processing industry, and close vulnerabilities in the food supply chain.

THE NEXT STEP: BUILD BACK BETTER

There is more work to do in order to lower prices for American families and maintain a strong economic recovery for years to come.

The average American family spends 60% of their monthly income on health care, housing, child care, and transportation. These are costs that have held back too many American families for too long. If you are concerned about costs facing American families, passing BBB is the most immediate and direct step we can take to deliver. 

Three key pieces of the Build Back Better Act that will cut costs for America’s families:

Lower Health Care & Prescription Drug Costs: This isn’t a partisan issue: outrageous drug prices affect everyone across the board, spanning every kind of condition and disease. BBB will cap insulin costs, expand health care coverage, extend ACA tax credits, empower Medicare to negotiate down costs, limit seniors’ expenses, and hold drug companies accountable.

Lower Child Care Costs: Preschool and child care are prohibitively expensive for middle class families. BBB delivers two years of free preschool and affordable child care in the setting of a parent’s choice, enabling more middle class families to work and succeed in our economy while educating the next generation – so other countries don’t out-educate and out-compete us.

Lower Elder Care Costs: Caring for older loved ones is costing working families and preventing them from fully participating in our workforce and economy. BBB expands access through Medicaid to high-quality, affordable care for older Americans and people with disabilities in their homes – while supporting the workers who care for them.

And, the Build Back Better Act will also cut other costs American families also struggle with – from high housing costs to the costs of climate change impacts.

THE ALTERNATIVE

Congressional Republicans are unified in their opposition to the President’s plans to address price increases.

As President Biden works in tandem with Congress to lower costs for consumers, ease inflationary pressures, and strengthen our economic recovery, Congressional Republicans have no plan to address any of the issues that working families are grappling with right now. Instead of working with the President to fight inflation, Republicans are playing politics with higher prices – one leading Republican even called it a political ‘gold mine’ for them.

The plan Congressional Democrats are supporting:

  • Lowering prices and costs for the American people as the economy recovers from a global pandemic.
  • Extending tax cuts for working families that put money in pockets.
  • Easing inflationary pressures on the economy, as affirmed by 17 Nobel Prize winners in economics.

Meanwhile, Congressional Republicans have no plan to lower prices for working families. Congressional Republicans are only focused on:

  • Fighting against common sense measures to put the pandemic in retreat.
  • Voting against lowering core costs for Americans – prescription drugs, child care, elder care, and housing.
  • Standing united against easing inflationary pressures.

The historic Build Back Better Act will cut costs that American families have struggled with for years. The President and Congressional Democrats are actively working to lower prices and costs for the American people. On the other hand, Republican Members of Congress have no plan, while supporting raising taxes and increasing the biggest costs families deal with.

Biden Administration, Build Back Better, Economic Development, Economic Policies, Economy, Infrastructure, Jobs, Joe Biden

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

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

From the White House:

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

Biden Administration, Economic Policies, Economy

White House Memo: ‘The Generational Choices in Front of Us to Grow the Economy for All’

White House staff issued a memo to “All Interested Parties”: The Generational Choices in Front of Us to Grow the Economy for All © Karen Rubin/news-photos-features.com
 

In a nutshell, President Joe Biden’s “Build Back Better” agenda comes down to this: seizing this rare opportunity to grow the economy in such a way so that all benefit, or continuing a system that benefits a small slice of society while holding back the rest, states a “memo” from White House Senior Staff to “Interested Parties”. Re: “The Generational Choices in Front of Us to Grow the Economy for All”

  
Memo: The Generational Choices in Front of Us to Grow the Economy for All
To: Interested Parties
From: White House Senior Staff
 
America is at a crossroads right now: whether to create sustained economic growth that benefits everybody by addressing the challenges that have held back working families for decades, or maintain the status quo of a failed strategy to invest government resources in tax cuts for large corporations and the wealthy.
 
The choice in front of us is simple. We can pass a plan that 17 Nobel Prize winning economists last week said would boost our economy and ease long-term inflationary pressures. We can pass a plan that last week the Economic Policy Institute said would support 4 million jobs per year over the decade. Or we can prioritize the interests of the wealthiest Americans and most profitable corporations over building an economy that works for everyone.
 
These are the choices in front of us:
 
1. We can continue to give the wealthiest 0.1% of households – those making $2 million a year – an annual tax cut of $36,000…
…OR we can dramatically reduce child poverty by providing a tax cut to nearly 40 million households and the parents of 90% of American children through a historic expansion of the Child Tax Credit.

  • Economic impact: Last week, 450 economists, including four Nobel Prize winners, highlighted in an open letter the clear evidence of the economic benefits of the CTC – including higher long-term earnings for children in families receiving credit. This led the economists to conclude that “the net cost to taxpayers of the expansion has been estimated to be as little as approximately 16 cents for every $1 of new benefits.”

 
2. We can let pharmaceutical companies continue to raise prices on drugs that we depend on and allow nearly 1 in 4 Americans to struggle to afford prescription drugs…
…OR we can lower drug costs by allowing Medicare to negotiate prescription drug prices, expand health care coverage to 4 million uninsured people, and reduce health insurance premiums – saving 9 million people an average of $50 per month.

  • Economic impact: Reducing drug and healthcare would mean putting more money in Americans’ pockets that they can use to drive demand for U.S. goods and services. And, studies show that making health care more affordable enables more Americans to work, boosting employment and expanding the labor market.

 
3. We can let the wealthiest 1% of Americans evade $160 billion per year in taxes…
… OR we can enforce our existing tax laws and invest that money to make universal preschool a reality – benefiting more than 5 million families and bringing down the crushing costs of child care for middle class families, which will help the average family save $13,000 per year. 

  • Economic impact: Investing in universal preschool would help grow our economy for generations to come: research shows that every dollar invested in high-quality early childhood programs for low-income children yields more than $7 in benefits. The Economic Policy Institute study released last week projected that the President’s plan would support 1.1 million caregiving jobs per year this decade.

 
4. We can continue to allow large, profitable corporations to take advantage of tax loopholes…
… OR we can require big corporations to finally pay their fair share and use that money to invest in small businesses – the engine of our economy in communities throughout the country.

  • Economic impact: Supporting small businesses would help grow our economy in a way that benefits everyone: small businesses account for 44% of U.S. GDP, create two-thirds of net new jobs, and employ nearly half of America’s workers.

             
5. We can continue to let 55 Fortune 500 companies pay $0 in taxes on more than $40 billion in profits per year…
…OR we can eliminate loopholes like the ones that allow companies to shift jobs and profits overseas and use that money to address the threat of climate change and make critical investments so that our communities are more resilient against extreme weather events. These companies have said we need to take on the existential threat of climate change; now they face a real choice – pay a little more or continue to allow extreme weather events to devastate communities around the country.

  • Economic impact: Last year alone, the United States faced 22 extreme weather and climate-related disaster events with losses exceeding $1 billion each – a cumulative price tag of nearly $100 billion. The climate investments in the Build Back Better plan would support more than 750,000 green jobs per year over the coming decade, and prevent economic shocks brought on from extreme weather events.

 
6. We can allow the middle class to be taxed more for their work than the richest are taxed on their investment income…
…OR we can ask the top 0.3% to pay a higher tax rate on their investment income and use that money to drive down housing costs for the 10.5 million renters paying more than half of their incomes on rent and boost housing supply with the construction or rehabilitation of more than two million homes.

 
7. We can keep the corporate tax rate for the top 1% most profitable corporations at the lowest rate it has been since World War II…
…OR we can make a modest increase to the corporate tax rate and use that money to reduce the crushing cost of child and elder care for middle class families. The President’s child care proposal would provide high-quality child care for children up to age 5, saving the average family $14,800 per year.

  • Economic impact: Investments in child care improve worker productivity, workforce participation, family incomes, and business revenue. One study found a $57 billion annual cost to the economy due to child-care related lost earnings and productivity.

 
8. We can accept a tax system where a teacher pays a higher tax rate than a hedge fund manager…
…OR we can restore fairness in our tax code and expand paid family and medical leave to the nearly four in five private sector workers and 95% of lowest wage workers who currently lack it – so that millions of Americans no longer have to decide between keeping their jobs or caring for loved ones and their personal health.

  • Economic impact: Comprehensive paid and medical leave policies would increase labor force participation and lead to better outcomes for workers and businesses. The adoption of a paid leave program is associated with a 4.6% increase in revenue per full-time employee and 6.8% increase in profit per full-time employee.

The President believes that these choices are easy. He chooses leveling the playing field to ensure the wealthiest individuals and most profitable corporations pay their fair share and working-class families get a fighting chance to succeed and prosper. He chooses tackling the existential threats facing our country and making investments to position our nation for success for generations to come. These are the choices we face now.

Biden Administration, Economic Development, Economic Policies, Economy, Government spending, Jobs, Joe Biden, News & Photo Features, President Joe Biden, Women's Issues

Biden Administration Releases $39 Billion from American Rescue Plan to Address Child Care Crisis

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 states “to rescue the child care industry so the economy can recover”© Karen Rubin/news-photos-features.com

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.

Source: Pandemic pushes mothers of young children out of the labor force | Federal Reserve Bank of Minneapolis (minneapolisfed.org)

 
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.
 

 Child Care Development Fund Flexible FundingChild Care Stabilization FundingTotal
TOTAL            14,960,830,000                 23,975,000,000       38,935,830,000
STATES
Alabama                 281,637,028              451,360,337            732,997,365
Alaska                   28,288,483                45,336,010              73,624,493
Arizona                 372,151,615              596,421,853            968,573,468
Arkansas                 178,509,626              286,085,126            464,594,752
California              1,443,355,294           2,313,166,479         3,756,521,773
Colorado                 178,553,958              286,156,175           464,710,133
Connecticut                 106,000,358              169,879,499            275,879,857
Delaware                   41,652,009                66,752,817            108,404,826
District of Columbia                   24,860,559                39,842,313              64,702,872
Florida                 950,379,359           1,523,107,778         2,473,487,137
Georgia                 604,180,514              968,278,648         1,572,459,162
Hawaii                   49,850,222                79,891,531            129,741,753
Idaho                   86,458,222              138,560,660            225,018,882
Illinois                 496,853,094              796,272,357         1,293,125,451
Indiana                 337,076,458              540,209,308            877,285,766
Iowa                 141,985,752              227,550,820            369,536,572
Kansas                 133,466,378              213,897,405            347,363,783
Kentucky                 293,307,790              470,064,268            763,372,058
Louisiana                 296,835,564              475,717,989            772,553,553
Maine                   45,660,198                73,176,466            118,836,664
Maryland                 192,855,570              309,076,387            501,931,957
Massachusetts                 196,164,566              314,379,488           510,544,054
Michigan                 437,223,904              700,708,746         1,137,932,650
Minnesota                 202,291,045              324,197,976            526,489,021
Mississippi                 199,344,951              319,476,474            518,821,425
Missouri                 277,132,195              444,140,749            721,272,944
Montana                   42,477,481                68,075,745            110,553,226
Nebraska                   89,286,484              143,093,320            232,379,804
Nevada                 138,787,492              222,425,189            361,212,681
New Hampshire                   29,736,767                47,657,076              77,393,843
New Jersey                 266,779,051              427,548,476            694,327,527
New Mexico                 122,970,798              197,076,859            320,047,657
New York                 701,659,170           1,124,501,000         1,826,160,170
North Carolina                 502,777,789              805,767,459         1,308,545,248
North Dakota                   29,109,192                46,651,304              75,760,496
Ohio                 499,067,750              799,821,634         1,298,889,384
Oklahoma                 226,430,561              362,884,723            589,315,284
Oregon                 155,312,363              248,908,466            404,220,829
Pennsylvania                 454,791,980              728,863,896         1,183,655,876
Rhode Island                   35,723,344                57,251,352              92,974,696
South Carolina                 272,416,120              436,582,621            708,998,741
South Dakota                   38,618,949                61,891,939            100,510,888
Tennessee                 345,950,731              554,431,495            900,382,226
Texas              1,699,934,795           2,724,368,837         4,424,303,632
Utah                 163,100,176              261,389,459            424,489,635
Vermont                   18,302,749                29,332,561              47,635,310
Virginia                 304,876,959              488,605,381            793,482,340
Washington                 243,089,298              389,582,536            632,671,834
West Virginia                 100,070,363              160,375,904            260,446,267
Wisconsin                 222,761,422              357,004,444            579,765,866
Wyoming                   18,285,260                29,304,530              47,589,790
Totals for States 14,318,391,756 22,947,103,865 37,265,495,621
TERRITORIES
 Child Care Development Fund Flexible FundingChild Care Stabilization FundingTotal
American Samoa                   19,083,903                30,522,786              49,606,689
Guam                   27,498,602                43,981,253              71,479,855
Northern Mariana Islands                   13,934,049                22,286,113              36,220,162
Puerto Rico                 117,788,244              188,771,135            306,559,379
Virgin Islands                   14,433,446                23,084,848              37,518,294
Totals for Territories                 192,738,244 308,646,135 501,384,379
TRIBES


 		Child Care Development Fund Flexible FundingChild Care Stabilization FundingTotal
Tribes                 449,700,000               719,250,000         1,168,950,000
Totals for Tribes                 449,700,000              719,250,000         1,168,950,000