Despite ongoing opposition by Republicans, President Joe Biden continues to introduce programs to relieve the burden of student loans. This is a fact sheet from the Department of Education describing a Revised Pay As You Earn (REPAYE) plan to provide student debt relief for 40 million borrowers:
Today, the U.S. Department of Education (Department) proposed regulations to reduce the cost of federal student loan payments, especially for low and middle-income borrowers. The regulations fulfill the commitment President Biden laid out in August when he announced his Administration’s plan to provide student debt relief for approximately 40 million borrowers and make the student loan system more manageable for student borrowers. The proposed regulations would create the most affordable income-driven repayment (IDR) plan that has ever been made available to student loan borrowers, simplify the program, and eliminate common pitfalls that have historically delayed borrowers’ progress toward forgiveness.
“Today the Biden-Harris administration is proposing historic changes that would make student loan repayment more affordable and manageable than ever before,” said U.S. Secretary of Education Miguel Cardona. “We cannot return to the same broken system we had before the pandemic, when a million borrowers defaulted on their loans a year and snowballing interest left millions owing more than they initially borrowed. These proposed regulations will cut monthly payments for undergraduate borrowers in half and create faster pathways to forgiveness, so borrowers can better manage repayment, avoid delinquency and default, and focus on building brighter futures for themselves and their families.”
The proposed regulations would amend the terms of the Revised Pay As You Earn (REPAYE) plan to offer $0 monthly payments for any individual borrower who makes less than roughly $30,600 annually and any borrower in a family of four who makes less than about $62,400. The regulations would also cut in half monthly payments on undergraduate loans for borrowers who do not otherwise have a $0 payment in this plan. The proposed regulations would also ensure that borrowers stop seeing their balances grow due to the accumulation of unpaid interest after making their monthly payments.
While these regulations would provide critical relief to student borrowers, the Biden-Harris Administration is also committed to ensuring postsecondary institutions and programs are held accountable if they leave borrowers with unaffordable debts. The Department is currently working on a proposed gainful employment regulation that would cut off federal financial aid to career training programs that fail to provide sufficient financial value and require warnings for borrowers who attend any program that leaves graduates with excessive debts. The same regulatory package will also include proposals to strengthen the conditions that can be placed on institutions that fail to meet the requirements of the Higher Education Act or exhibit signs of risk.
The Department is also taking steps today to carry out President Biden’s announcement from August that the Department would publish a list of the programs at all types of colleges and universities that provide the least financial value to students. To advance this effort, the Department is publishing a request for information to seek formal public feedback on the best way to identify the programs that provide the least financial value for students. This public comment process will ensure the Department is carefully considering a range of perspectives and considerations as it constructs the list. Once the list is published, institutions with programs on this list will be asked to submit improvement plans to the Department to improve their financial value.
Estimated effects of the proposed IDR Plan
The proposed regulatory changes would substantially reduce monthly debt burdens and lifetime payments, especially for low and middle-income borrowers, community college students, and borrowers who work in public service. Overall, the Department estimates that the plan would have the following effects compared to the existing REPAYE plan:
Future cohorts of borrowers would see their total payments per dollar borrowed decrease by 40%. Borrowers with the lowest projected lifetime earnings would see payments that are 83% less, while those in the top would only see a 5% reduction.
A typical graduate of a four-year public university would save nearly $2,000 a year relative to the current REPAYE plan.
A first-year teacher with a bachelor’s degree would save more than $17,000 in total payments while pursuing Public Service Loan Forgiveness—a two-thirds reduction in what they would pay in total under REPAYE.
85% of community college borrowers would be debt-free within 10 years
On average, Black, Hispanic, American Indian and Alaska Native borrowers would see their lifetime payments per dollar borrowed cut in half.
Building on an Unparalleled Record of Debt Relief
The draft regulations build upon the work the Biden-Harris Administration has already done to improve the student loan program, make colleges more affordable, approve $48 billion in targeted relief to nearly 2 million student loan borrowers, and fight to provide up to $20,000 in one-time debt relief to over 40 million eligible borrowers, including 26 million who have already applied. These regulations also propose to build on the Administration’s commitment to ensuring IDR plans deliver relief to eligible borrowers. This includes ongoing steps to provide accurate counts of progress toward forgiveness for borrowers through a one-time account adjustment.
The proposed regulations and request for information will be published in the Federal Register tomorrow. The public may comment on both documents through the Regulations.gov website for 30 days. The Department expects to finalize the rules later this year and aims to start implementing some provisions later this year, subject to any changes made based on public comments.
View an unofficial copy of proposed IDR regulation here and a fact sheet with further information here. View an unofficial copy of the RFI here, and a fact sheet with further information here.
Fighting for Debt Relief at the Supreme Court
Since President Biden first announced his intention to cancel up to $20,000 in student loan debt for the vast majority of borrowers, opponents of student debt relief have filed legal challenges seeking to halt this effort. In December, the Supreme Court agreed to hear two of these challenges– Nebraska v. Biden (recaptioned Biden v. Nebraska at the Supreme Court), brought by Republican officials in Nebraska, Missouri, Kansas, South Carolina, Arkansas, and Iowa, and Brown v. Biden (recaptioned Biden v. Brown at the Supreme Court), a challenge brought by student loan borrowers in Texas and funded by a right-wing dark-money group.
Today, an historic coalition of cities, states, experts, and advocates filed more than a dozen amicus curiae briefs with the U.S. Supreme Court in support of the Biden Administration’s student debt relief program.
This week’s briefs support the Justice Department’s effort to defend this policy before the nation’s highest court. To date, more than 26 million Americans have applied for student debt relief and more than 40 million Americans are expected to benefit when this program is fully implemented.
Leaders and public officials join law scholars, economists, sociologists, higher education and public policy experts from across the political and ideological spectrum in briefing the high court. The briefs represent the breadth of communities that stand to benefit from student debt relief, including working people, borrowers of color, veterans, older people, people of faith, along with cities and states across the country. Together, these briefs showcase the broad support, strong legal foundation, and urgent economic necessity underpinning President Biden’s effort to cancel student debt for 40 million Americans.
On World Teachers’ Day, October 5, the White House issued this fact sheet showing the ways the Biden-Harris Administration is standing up in support of teachers, when in many locales, teachers have been under attack. In Florida, for example, any parent can sue a teacher if they take offense with what is being taught, and expects teachers to be human shields for mass murderers – no wonder Florida is short 9,000 in the classroom.
Our teachers prepare and inspire the next generation of leaders who are critical to our future. On World Teachers’ Day, October 5, First Lady Jill Biden appeared on The Kelly Clarkson Show for an hour-long special dedicated to teachers, and participated in Pinterest’s day-long livestream to celebrate teachers, featuring top educator creators from across the country. The Biden-Harris Administration is committed to celebrating and elevating the teaching profession, and to addressing the challenges facing teachers by taking comprehensive actions to recruit, respect, and retain educators.
To Recruit,Respect, and Retain teachers and other school staff we must:
Pay educators competitively: President Biden has long called for increases in teacher pay. On average, teachers make about 33 percent less than other college-educated professionals. We cannot address staffing shortages impacting schools without addressing paying teachers a livable and competitive wage.
Improve working conditions: Whether it’s sufficient planning time and staffing levels, opportunities for leadership and collaboration with peers, or clean air to breathe and cool classrooms during heat waves, educators need working conditions that are conducive to teaching and to students’ learning.
The Biden-Harris Administration has taken concrete actions to advance these goals.
American Rescue Plan
President’s Biden’s American Rescue Plan (ARP) provided $122 billion to the nation’s K-12 schools. The President, U.S. Secretary of Education Miguel Cardona, and U.S. Secretary of Labor Marty Walsh have urged states and districts to use these funds to increase compensation for teachers, invest in teacher pipeline programs, and hire more professionals across the education workforce. These investments not only provide greater supports to students, but also reduce the burden on current teachers. With the help of the ARP, there are 261,000 more jobs in local education than when President Biden took office. As of July, ARP funding has helped school districts increase the number of school social workers by 54 percent, increase counselors by 22 percent, and increase nurses by 22 percent, compared to the pre-pandemic period. For example:
Iowa is using ARP funds to train 500 new paraeducators and 500 new teachers. Starting this year, the program will help current high school students and adults earn a paraeducator certificate and associate degree, and paraeducators to earn a bachelor’s degree and teaching license – all while learning and working in the classroom.
Gaston County Schoolsin North Carolina used ARP funds to double their nursing staff and secure a nurse for each of their 54 school locations, so that nurses no longer have to split their time between two buildings.
Additional Federal Investments in Teacher Recruitment and Preparation
Through Department of Education grants, the Biden-Harris Administration has prioritized supporting teachers in a wide array of Fiscal Year 2022 grants, particularly investing in high-quality teacher preparation programs that include robust experience in the classroom before becoming a teacher. These programs recruit more diverse teachers, better prepare them for the classroom, and increase the likelihood of teachers staying in the profession. The President has called for an additional $590 million investment in teachers in his FY23 budget.
New investments under the Supporting Effective Educator Development (SEED) program to help ensure long-term support for teacher pipeline and development programs across the country. The 22 new three-year grants totaling more than $60 million include:
The National Center for Teacher Residencies will increase the number of effective teacher residents from diverse backgrounds in underserved schools, districts, and subjects by boosting teacher residency programs across Connecticut, Delaware, North Carolina, Tennessee, and Virginia.
The New Orleans SEED program will address persistent teacher shortages by boosting pathways into the profession through the expansion of Grow-Your-Own pathways. By 2025, the project hopes to recruit, prepare, and place 550 teachers in underserved schools and have more than 200 high school students in its teacher pipeline.
New Teacher Quality Partnership awards to help recruit, prepare, develop, and retain a strong and diverse teacher workforce. The 22 five-year grants totaling $24.7 million include:
In Winston-Salem/Forsyth County, North Carolina, funds will support a residency program that will recruit, prepare and retain 120 special education, elementary and secondary teachers in high-need schools.
Funds will support a Grow Your Own program in Gwinnett County, Georgia, that will support alumni of Gwinnett County Public Schools in returning to the community as teachers after they graduate from college.
For the first time, this year the Department of Education will also award grants under the Augustus F. Hawkins program to support teacher preparation programs at Historically Black Colleges and Universities, Tribal Colleges and Universities, and Minority Serving Institutions.
The Department of Labor has also committed to prioritizing the education sector in future apprenticeship funding, including its next round of over $100 million in apprenticeship grants. This will provide critical support for states and other partners looking to start and expand teacher apprenticeship programs, which allow individuals to earn while they learn, receiving pay while they gain teaching skills and take coursework to earn their teaching license.
Ensuring Education Jobs Are Good Jobs
Schools cannot recruit or retain the teachers they need unless jobs in education are good jobs. Adjusted for inflation, the average weekly wages of public school teachers only increased by $29 between 1996 and 2021. Beyond calling for better pay and encouraging the use of ARP funds for this purpose, the Administration has taken concrete action to address teacher compensation.
Sustained Funding to Increase Teacher Pay: To increase teacher pay, schools need more funding. President Biden’s budgets have proposed an additional $20 billion for Title I—which supports schools serving students from low-income backgrounds—more than doubling funding for this program. These resources would help schools increase teacher pay and close gaps in access to educational opportunity. As roughly 92 percent of funding for public schools comes from the state and local level, state and local leaders must also take decisive action to provide schools with the resources they need to pay teachers competitively and to close funding gaps undermining schools serving low-income communities.
Reducing Student Debt for Teachers: Too many teachers are burdened with so much student debt that they feel like they cannot stay in the classroom. Debt also keeps many prospective teachers from entering the profession. The Administration has taken decisive action to provide more breathing room to America’s working families, including teachers, as they continue to recover from the strains associated with the COVID-19 pandemic.
Public Service Loan Forgiveness (PSLF): Earlier this year, the Biden-Harris Administration made temporary changes to the PSLF program that make it easier than ever for public servants, like teachers and school staff, to receive loan forgiveness or get credit toward loan forgiveness. To date, the Department of Education has approved more than $13 billion in forgiveness for more than 211,000 public servants under this waiver. To benefit from the temporary changes, borrowers must apply and certify their employment for the period of time they wish to count toward PSLF by October 31, 2022 using this Help Tool. For more information, visit www.PSLF.gov. Teachers who previously received Teacher Loan Forgiveness can now also count those years used toward the Teacher Loan Forgiveness Program toward PSLF but they must certify those years by October 31. The Administration has also proposed regulatory changes to ensure more effective implementation of PSLF moving forward.
TEACH Grant: The Department is implementing improvements to the TEACH Grant program, which provides up to $16,000 in grants to teachers who commit to teaching in a high need school and field for 4 years.
Cancelling and Reforming Student Debt: In addition to the one-time student debt relief of up to $20,000 announced by President Biden in August, the Biden-Harris Administration has proposed a plan to reduce the burden of student debt through reforms to income-driven repayment plans. Under the proposed plan, borrowers will have more income protected and monthly payments on undergraduate loans will be cut in half – from 10 percent to 5 percent of their discretionary income.
The White House provided this fact sheet of what the Biden administration is doing to prevent COVID-19 spread and keep schools safe and open all year long:
When President Biden took office, less than half of K-12 schools were open for in-person learning. The President made getting schools safely reopened and our children back in the classroom a top priority. Over the past 18 months, driven by the President’s American Rescue Plan and a comprehensive COVID-19 response, the Biden-Harris Administration has provided schools with unprecedented resources to reopen safely, while keeping students and workers safe. As a result, all schools were open this past school year. Now, as students, educators, and school staff get ready for another school year, every school in America has the tools it needs to minimize the spread of COVID-19 and its impact, to open safely, to stay open all year long, and to ensure that students are back in the classroom full-time.
Because of the investments the Administration has made — including $122 billion in American Rescue Plan funding to keep schools open safely, combat learning loss, and address student mental health — and because of the tools we now have in place, we can prevent school closures, even as COVID-19 cases in a community fluctuate.
Today, as we start another school year, the Administration is laying out key supports and guidance for protecting students, teachers, and school communities this upcoming school year, and managing and mitigating the risks of COVID-19 spread. This includes making an abundance of federal resources available to schools to implement these strategies.
These resources and guidance include:
Using COVID-19 vaccines and boosters as the first line of defense to protect in-person learning. Every American age 6 months and over is eligible to get vaccinated, and everyone age 5 and over is eligible for a booster shot after completing their primary series. Getting vaccinated and staying up to date with COVID-19 vaccinations are the most important ways that we can minimize the most serious impacts that COVID-19 can have on our children, their teachers, and their school communities. Schools, early care and education programs, and health departments can promote vaccination in many ways:
Getting school staff boosted against COVID-19: The Administration will work with the American Federation of Teachers (AFT) and the National Education Association (NEA) – which collectively represent more than 5 million teachers and school staff – to encourage members to get a COVID-19 booster as they return to school and during the fall. The Administration will provide materials that the organizations can use, such as the Centers for Disease Control and Prevention (CDC) Stay Up to Date with Your COVID-19 Vaccines page and Booster tool, as well as information about where and how they can get a COVID-19 booster in their communities using Vaccines.gov. AFT and NEA will highlight the opportunity to get a second booster for their members age 50 and over who have not gotten a booster shot this calendar year, with an additional focus on communicating with their retirees.
Hosting school-located vaccine clinics nationwide: The Administration is once again calling on all school districts to host at least one school-located vaccine clinic at the start of the school year, and it is providing resources to help schools do so. The CDC has made information and recommendations for hosting clinics available in its guide for planning school vaccination clinics, and American Rescue Plan and Federal Emergency Management Agency (FEMA) funds are available to help cover the costs of hosting a vaccine clinic. Throughout the last school year, pharmacies in the federal pharmacy program supported schools nationwide in hosting thousands of school-located vaccine clinics.
Encouraging children to catch up on routine childhood vaccines: CDC is working with providers and the public to encourage families to catch up on routine childhood vaccinations that protect them against preventable diseases such as polio, measles, and whooping cough. As part of these efforts, CDC will apply lessons learned and focus on rebuilding and reconnecting with communities and partners to encourage routine vaccinations.
Providing robust access to COVID-19 testing at schools to help detect infection early. Diagnostic testing is a helpful strategy that all schools can use to understand whether students, staff, or family members have COVID-19 when they are symptomatic or have been exposed to the virus. Additionally, CDC advises in its latest Operational Guidance for K-12 Schools and Early Care and Education Programs that schools in areas with high COVID-19 Community Levels can consider screening testing strategies for their students and staff for high-risk activities and for key events and times of the year. Last year, the Administration made millions of COVID-19 tests and supports available for free to schools, and will continue to do so in the school year ahead:
Providing free access to COVID-19 tests: The Administration will extend the efforts it launched last January in making millions of COVID-19 tests freely available to schools each month. This will include 5 million over-the-counter rapid tests, 5 million swab-and-send PCR tests, and additional point-of-care rapid tests, all of which will now be available to order through January 2023. During the last half of the 2021-22 school year, schools requested and received more than 30 million tests through this program. In addition, schools may supplement their test supplies through extended use of the $10 billion allocated to K-12 school testing through the CDC Epidemiology and Laboratory Capacity program, which states are now authorized to use through the upcoming 2022-23 school year.
Expanding access to COVID-19 testing to child care and early learning programs: COVID-19 tests will also now be available to early childhood care and education sites through the same distribution channel available to K-12 schools. Early care and education centers are invaluable community institutions that help keep our economy running, help parents stay at work, and help businesses remain strong. Child care programs have been essential in our fight against COVID-19.
Improving indoor air quality across America’s school buildings. Effective ventilation and air filtration are important parts of COVID-19 prevention. In addition to other layered prevention strategies, taking actions to improve indoor air quality can reduce the risk of exposure to particles, aerosols, and other contaminants, reduce the spread of COVID-19, and improve the health of building occupants. The American Rescue Plan and other federal dollars may be used to make indoor air quality improvements, and the Administration will continue to provide supports to schools to help in making these improvements:
Helping schools plan and implement indoor air quality improvements, including through use of federal funds: Schools can use funding provided through the American Rescue Plan to improve ventilation in schools by making inspections, repairs, upgrades, and replacements in Heating, Ventilation, and Air Conditioning systems; purchasing and installing air conditioners, fans, portable air cleaners, and germicidal UV light systems; repairing windows, doors, and dampers that let fresh air into school buildings; and more. To support this work, the Environmental Protection Agency’s Clean Air in Buildings Challenge and its Indoor Air Quality Tools for Schools provides specific steps schools can take to improve indoor air quality and reduce the risk of airborne spread of viruses and other contaminants. CDC has published guidance on Ventilation in Schools and Childcare Programs, including an Interactive School Ventilation Tool that shows how particle levels change as you adjust ventilation settings. The Department of Energy (DOE) has launched the Efficient and Healthy Schools campaign to support investments and improvements for healthy school facilities, including through recognition, training, technical assistance, and 1-1 consultations on indoor air quality with individual schools and districts.
Recognizing champion schools and districts who are leading the way on indoor air quality: Over the coming months, the Administration will highlight school districts excelling in efforts to improve indoor air quality. This includes efforts through the DOE and Department of Education (ED) to support and uplift schools and districts undertaking critical work in indoor air quality. DOE’s Efficient and Healthy Schools Campaign will be announcing criteria for recognition for the upcoming school year in the coming weeks, with a continued priority on projects that accelerate indoor air quality improvements. ED’s Green Ribbon Schools program allows schools to earn federal accolades for their sustainability work that exhibits indoor air quality, resource efficiency and conservation, and environmental learning.
Additionally, ED will continue to work with CDC to help ensure that K-12 schools and early care and education centers know and understand the latest guidance on COVID-19 mitigation and how they can remain safely open for full-time in-person learning throughout the upcoming school year. CDC’s latest Operational Guidance for K-12 Schools and Early Care and Education Programs to Support Safe In-Person Learning includes updated recommendations aligned with COVID-19 Community Levels, including information on when to mask, how to manage cases and exposures, and best practices for responding to outbreaks. Some students may need additional protections to ensure that they can remain safe in the classroom – including students who are immunocompromised, with complex medical conditions, or with other disabilities that may put them at higher risk of severe outcomes from COVID-19. ED will continue to work with schools on strategies to ensure all students can access safe, in-person instruction.
President Joe Biden reacted to the June inflation report saying that while inflation is still unacceptably high, the report is out-of-date, failing to take into account that gas prices – which accounts for a significant amount of the inflation rate – have gone down for nearly 30 days, reducing the price at the pump by 40 cents since mid-June. Still, he said, “inflation is our most pressing economic challenge,” just as it is around the world. Here is his statement the June CPI Inflation report as provided by the White House:
While today’s headline inflation reading is unacceptably high, it is also out-of-date. Energy alone comprised nearly half of the monthly increase in inflation. Today’s data does not reflect the full impact of nearly 30 days of decreases in gas prices, that have reduced the price at the pump by about 40 cents since mid-June. Those savings are providing important breathing room for American families. And, other commodities like wheat have fallen sharply since this report.
Importantly, today’s report shows that what economists call annual “core inflation” came down for the third month in a row, and is the first month since last year where the annual “core” inflation rate is below six percent. Inflation is our most pressing economic challenge. It is hitting almost every country in the world. It is little comfort to Americans to know that inflation is also high in Europe, and higher in many countries there than in America. But it is a reminder that all major economies are battling this COVID-related challenge, made worse by Putin’s unconscionable aggression.
Tackling inflation is my top priority – we need to make more progress, more quickly, in getting price increases under control. Here is what I will do:
First, I will continue to do everything I can to bring down the price of gas. I will continue my historic release of oil from our strategic petroleum reserve. I will continue working with our European allies to put a price cap on Russian oil – sapping Putin of oil revenue. And, I will continue to work with the U.S. oil and gas industry to increase production responsibly — already, the U.S. is producing 12.1 million barrels of oil per day and is on track to break records.
But I will also continue to insist – as I have with urgency recently – that reductions in the price of oil must produce lower gas prices for consumers at the pump. The price of oil is down about 20% since mid-June, but the price of gas has so far only fallen half as much. Oil and gas companies must not use this moment as an excuse for profiting by not passing along savings at the pump.
Second, I will urge Congress to act, this month, on legislation to reduce the cost of everyday expenses that are hitting American families, from prescription drugs to utility bills to health insurance premiums and to make more in America.
Third, I will continue to oppose any efforts by Republicans – as they have proposed during this campaign year — to make things worse by raising taxes on working people, or putting Social Security and Medicare on the chopping block every five years.
Finally, I will continue to give the Federal Reserve the room it needs to help it combat inflation.
WASHINGTON, D.C.— As part the new Biden-Harris Action Plan for Building Better School Infrastructure, the U.S. Department of Energy (DOE) released a Request for Information (RFI) for a $500 million grant program from President Biden’s Bipartisan Infrastructure Law for K-12 public school energy upgrades. The program will help deliver cleaner and healthier classrooms, libraries, cafeterias, playgrounds, and gyms where over three million teachers teach and 50 million students learn, eat, and build friendships every day. Energy upgrades to America’s public schools, including leveraging renewable power sources and electric school buses, will bring the nation closer to President Biden’s goal to build a net-zero economy by 2050.
“Children should be able to learn and grow in environments that are not plagued with poor insulation and ventilation, leaky roofs, or poor heating and cooling,” said U.S. Secretary of Energy Jennifer M. Granholm. “President Biden fought for these funds to give schools and their communities the resources they need to improve student and teacher health and cut energy costs, allowing districts to focus more resources on student learning.”
Many of America’s public schools are in desperate need of energy improvements. The American Society of Civil Engineers gave the nation’s 100,000 public K-12 schools a D+ in their 2021 Report Card for America’s Infrastructure report. Dilapidated school facilities can negatively affect student learning and health as indoor air quality problems can aggravate respiratory illnesses, reduce student and teacher attendance and performance, and increase risk of transmission of respiratory infections like COVID-19.
Energy consumption is the second-highest operational expense schools face with a significant portion of this energy lost through leaky school walls, windows, and other inefficient equipment and systems. Districts that serve rural, high poverty, or Hispanic/Latino, African American, and Native American communities experience the greatest burden of failing or antiquated school facilities.
Public school facilities will be eligible for energy improvements that result in a direct reduction in school energy costs, including improvements to the air conditioning and heating, ventilation, hot water heating, and lighting systems. In addition, funding would support any improvement, repair, renovation to, or installation in a school that leads to an improvement in teacher and student health.
President Biden’s Bipartisan Infrastructure Law’s grant funding will also support additional improvements, repairs, or renovations such as the installation of renewable energy technologies, the installation of alternative fueled vehicle infrastructure on school grounds such as school buses or the purchase or lease of alternative fueled vehicles to be used by a school.
DOE encourages Local Education Agencies, school staff, states, local governments, energy service companies, unions, service providers, and utilities to respond to the RFI.
The deadline to submit your response to this RFI is May 18, 2022, at 5 p.m. ET. Download the RFI to see the full list of questions and instructions on how to submit your response.
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.
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 premiumsfor 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.
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 workforcedevelopment, 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 estimated37,000 homeless veterans.
ARP cancelled health care copayment charges for 2.5 million veteransduring 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 toreduce 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 reach1.5 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: with21 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.
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.
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.
This is in stark contrast to some Republican Governors – Ron DeSantis of Florida and Greg Abbott of Texas stand out– who are actively sabotaging efforts for public schools to keep their students, faculty and community safe. DeSantis has actually threatened public school districts – including Broward, Florida’s second largest – with withholding funding if they dare impose a mask mandate (the school district rescinded its order).
In remarks about the latest efforts by the administration to get COVID-19 under control and prevent needless sickness and death (some 75,000 may die by November, according to some projections), President Biden said, “I say to these governors, ‘Please, help.’ But if you aren’t going to help, at least get out of the way of the people who are trying to do the right thing. Use your power to save lives.” (It’s as if these governors want to sabotage the Biden administration’s efforts to end the pandemic and so people suffer and then punish Democrats in the 2022 midterms and 2024 election.)
“As families across the country eagerly anticipate a return to school, the Administration is determined to ensure that our schools and students not only recover from the pandemic, but that we Build Back Better for the future.”
Vaccination is our leading strategy to end the pandemic, and—combined with the layered mitigation strategies recommended by the CDC—has the greatest potential to allow schools to reopen fully this fall and stay open for in-person learning. That’s why, in March the President prioritized teachers and school staff for access to the COVID vaccine. As a result, almost 90 percent of educators and school staff are now vaccinated. To get more of our students ages 12 and older vaccinated, the President is now calling on school districts nationwide to host at least one pop-up vaccination clinic over the coming weeks and directing pharmacies in the federal pharmacy program to prioritize this and to work with school districts across the country to host vaccination clinics at schools and colleges.
Ensuring funds address the needs of students. Districts and states must spend a combined minimum of 25 percent of the state’s total ARP ESSER funds, totaling nearly $30.5 billion, to address the impact of lost instructional time through summer learning or enrichment, extended day instruction, comprehensive afterschool programs, or other evidence-based practices. Funded strategies must also respond to students’ social and emotional needs and account for the disproportionate impact of the coronavirus on underserved students. The Administration recognizes that the communities that support our students have a critical understanding of what their students need and are key to ensuring funds have the greatest impact on students. As they put together their plans for the use of funds, states and school districts are required to engage a wide range of stakeholders during the planning process, including educators, school leaders and staff, students, families, civil rights organizations, and stakeholders representing the interests of students with disabilities, English learners, students experiencing homelessness, children in foster care, migratory students, students who are incarcerated and other underserved students.
Protecting high-poverty districts from funding cuts. The American Rescue Plan’s ARP ESSER program includes a first-of-its-kind maintenance of equity requirement to ensure that high-poverty school districts and schools are protected in the event of funding cuts. These requirements will ensure that school districts and schools serving a large share of students from low-income backgrounds will not experience disproportionate budget cuts—and that the school districts with the highest poverty levels do not experience any decrease in state per-pupil funding below their pre-pandemic level.
Ensuring states continue to fund education. The Department has emphasized the importance of the American Rescue Plan’s maintenance of effort requirement, which ensures that states continue to fulfill their commitments to fund their education systems, and has worked with states to ensure that they meet these requirements. The maintenance of effort requirement helps protect students by making sure that federal pandemic relief funds are used to meet the immediate needs and impacts of the pandemic on students and schools to the greatest extent possible, rather than to supplant general state funding for K-12 education.
Stabilizing and ensuring access to child care. High-quality early care and education helps ensure that children can take full advantage of education and training opportunities later in life. The pandemic significantly disrupted the child care sector, threatening access to this critical support and threatening economic security for childcare workers, who are disproportionately women of color. The American Rescue Plan invested $24 billion in stabilizing the child care sector, and is helping to provide this essential industry—which provides vital opportunities for children—with more flexible funding to help more low-income working families access high-quality care, increase compensation for early childhood workers, and help parents to work.
Addressing the needs of students experiencing homelessness. The pandemic increased housing insecurity, and disproportionately impacted the education of students experiencing homelessness, who were less likely to be able to successfully engage in remote learning due to lack of reliable access to the internet. The Department of Education has released all $800 million in American Rescue Plan funds for identifying and addressing the needs of students experiencing homelessness, including by providing wraparound services and support ranging from afterschool to mental health services.
Supporting students with disabilities. The pandemic created serious challenges for many students with disabilities, who struggled to access special education and related services according to their individualized services plan. The American Rescue Plan provides support to students with disabilities and infants and toddlers with disabilities through the Individuals with Disabilities Education Act. To ensure states can deliver the necessary services and supports to young children and youth with disabilities, the American Rescue Plan devotes nearly $2.6 billion in grants to states to support elementary and secondary education students with disabilities, $200 million for preschool children with disabilities, and $250 million for infants and toddlers with disabilities and their families.
Bolstering Tribal education. The Bureau of Indian Education (BIE) is using $535 million in American Rescue Plan funds to support 183 BIE-funded K-12 schools, providing much-needed financial support to help Tribal communities recover more quickly from the pandemic’s wide-ranging impact.
Funding COVID testing. The American Rescue Plan includes $10 billion to support COVID-19 testing in schools. This funding will help to reopen schools, including in communities of color, which have been disproportionately impacted by the pandemic.
Closing the digital divide. The American Rescue Plan included $7.2 billion for the E-Rate program, which helps support American schools by funding programs to help ensure K-12 students and teachers have the appropriate internet connections and devices for distance learning, a particular challenge in low-income and rural communities.
Supporting nutrition security. It is hard for students to learn successfully when they are experiencing hunger. Black and Latino households face food insecurity at twice the rate of white households. The American Rescue Plan guards against food hardship among students this summer by allowing states to continue the Pandemic-EBT program, which provides grocery benefits to replace meals for students who are eligible for free and reduced priced meals when schools are closed. It also increases SNAP benefits by 15 percent through September 2021, maintaining the increase through the summer, when childhood hunger spikes due to a lack of school meals. The U.S. Department of Agriculture likewise acted to offer flexibility for the 2021-2022 school year by providing waivers that allow schools to serve free meals to all students.
The White House issued a fact sheet explaining how President Joe Biden’s American Families Plan will support children, teachers and working families and advances equity and racial justice:
On his first day in office, President Biden signed an Executive Order directing the whole of the federal government to advance equity and racial justice. Today, the President announced a historic new set of investments to deliver on his vision of a more equitable America through the American Families Plan. The American Families Plan will help restore the promise of America for communities who have been left behind and locked out of opportunity—investing in teachers and students, empowering workers and their families, and reimagining a tax code that rewards work over wealth. By extending and building upon the provisions of the American Rescue Plan, the American Families Plan would lift more than 10 million people out of poverty in 2022. This means a 29 percent reduction in Black poverty, a 31 percent reduction in Latino poverty, and a 15 percent reduction in Asian American, Native Hawaiian, and Pacific Islander poverty, relative to the projected poverty rate for 2022. Among children, it would reduce poverty by more than 47 percent.
President Biden’s American Families Plan will deliver a fairer and more equitable America by:
Closing opportunity gaps for low-income children and children of color by providing universal access to preschool, and making quality, affordable child care more accessible across the nation.
Investing in educational opportunity for underserved communities by providing two years of free community college for Americans, including DREAMers; making Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), and institutions such as Hispanic-serving institutions (HSIs), Asian American and Native American Pacific Islander-serving institutions (AANAPISIs), and other Minority-serving Institutions (MSIs) more affordable; increasing the value of Pell Grants to help more low-income students attend college; and ensuring more students are supported through completion.
Empowering teachers by investing in the training and support they need and ensuring more teachers of color can reach the classroom.
Creating a right to paid family and medical leave to ensure working parents and caregivers, including workers of color and low-wage workers, can equitably access the time off they need to support their families.
Closing gaps in our social safety net to ensure that kids have the nutritious food they need to be healthy and succeed in school.
Extending the American Rescue Plan’s historic expansions of the Child Tax Credit, the Earned Income Tax Credit, and the Child and Dependent Care Tax Credit to provide income support and cut poverty among families and workers.
Together, these investments will give millions of children across the country a fair shot at the American dream.
UNIVERSAL PRE-SCHOOL FOR ALL 3- AND 4-YEAR-OLDS
Preschool is critical to ensuring that children start kindergarten with the skills and supports that set them up for success in school. In fact, research shows that kids who attend universal Pre-K are more likely to take honors classes and less likely to repeat a grade, and another study finds low-income children who attend universal programs do better in math and reading as late as eighth grade. Unfortunately, most children, and especially children of color and low-income children, do not have access to the full range of high-quality pre-school programs available to their peers. In addition, children with disabilities benefit from inclusive, accessible pre-school programs with their peers, and all children benefit when we create socio-economically diverse Pre-K classrooms where all students thrive.
President Biden’s American Families Plan will:
Close opportunity gaps by providing universal pre-school to all 3- and 4-year-olds. President Biden is calling for a national partnership with states to offer free, high-quality, accessible, and inclusive preschool to all 3-and 4-year-olds—benefitting 5 million children. This historic investment in America’s future will first prioritize high-need areas and enable communities and families to choose the setting that works best for them, whether that’s a preschool classroom in a public school, a center, or a Head Start program. The President’s plan will also ensure that all publicly-funded preschool is high-quality with low student-to-teacher ratios, a high-quality and developmentally appropriate curriculum, and supportive classroom environments that are inclusive for all students. The President’s plan will leverage investments in tuition-free community college and teacher scholarships to support those who wish to earn a bachelor’s degree or other credential that supports their work as an educator or their work to become an early childhood educator. And, educators will receive job-embedded coaching, professional development, and wages that reflect the importance of their work. All employees in participating Pre-K programs and Head Start will earn at least $15 per hour, and those with comparable qualifications will receive compensation commensurate with that of kindergarten teachers. These investments will give American children a head start and pave the way for the best-educated generation in U.S. history
FREE COMMUNITY COLLEGE AND OTHER POSTSECONDARY INVESTMENTS
For much of the 20th century, graduating from high school was a gateway to a stable job and a living wage. But over the last 40 years, we have seen the most growth in jobs requiring higher levels of job preparation, including education and training. Today, 70 percent of jobs are held by people with more than a high school degree. American workers, and especially workers of color, need support to build their skills, increase their earnings, remain competitive, and share in the benefits of the new economy. President Biden’s American Families Plan will:
Offer two years of free community college to all Americans, including DREAMers. Community colleges provide educational opportunities for students who are often underserved by four-year universities, including first-generation students, students of color, low-income students, and adult learners. President Biden’s proposal creates a federal-state, -territory, and -tribal partnership that allows first-time college students and workers wanting to reskill to enroll in a community college to earn a degree or credential for free. Students can use the benefit for up to three years and, if circumstances warrant, up to four years, recognizing that many students’ lives and other responsibilities can make full-time enrollment difficult. If all states, territories, and tribes participate, about 5.5 million students would pay $0 in tuition and fees.
Provide up to approximately $1,400 in additional assistance to low-income students by increasing the Pell Grant award. Nearly 60 percent of Black, almost half of Latino, half of American Indian or Alaska Native, and more than one-third of Native Hawaiian or Pacific Islander students depend on Pell Grants to help pay for college. But the grant has not kept up with the rising cost of postsecondary education; over the last 50 years, the maximum Pell Grant value has plummeted from nearly 80 percent of the cost of a four-year college degree to just 30 percent — leading millions of low-income students to take out debt to finance their education. The American Families Plan would increase the maximum Pell Grant award by approximately $1,400 and allow DREAMers to access the funding.
Increase college retention and completion rates. Just 40 percent and 54 percent of first-time Black and Latino students at four-year colleges and universities, respectively, go on to earn their degree, compared to 64 percent of white students. And overall, just 40 percent of community college students, who are disproportionately low-income and people of color, graduate within 6 years. The President is proposing a $62 billion formula grant program that will provide funding to states, territories, and Tribes to support retention and completion activities at colleges and universities that serve high numbers of low-income students, including wraparound services ranging from child care and mental health services to faculty and peer mentoring; emergency basic needs grants; practices that recruit and retain faculty; transfer agreements between colleges; and evidence-based remediation programs.
Provide two years of subsidized tuition and expand programs in high-demand fields at HBCUs, TCUs, and MSIs. Research has found that HBCUs, TCUs, and MSIs are vital to helping underrepresented students move to the top of the income ladder. But despite their record of success, these institutions have significantly fewer resources than other top colleges and universities, undermining their ability to grow and support more students. The President is calling for $39 billion to provide tuition subsidies to low- and middle-income students attending HBCUs, TCUs, and MSIs. The President is also calling for $5 billion to expand existing institutional aid grants to HBCUs, TCUs, and MSIs, which can be used by these institutions to strengthen their academic, administrative, and fiscal capabilities, including by creating or expanding educational programs in high-demand fields (e.g., STEM, computer sciences, nursing, and allied health), with an additional $2 billion funding directed towards building a pipeline of skilled health care workers with graduate degrees. These proposed investments, combined with the $45 billion proposed in the American Jobs Plan targeted to these institutions, will enable America’s HBCUs, TCUs, and MSIs to help advance underrepresented students and make the U.S. more competitive on the global stage.
EDUCATION AND PREPARATION FOR TEACHERS
Few people have a bigger impact on a child’s life than a great teacher. Unfortunately, the U.S. faces a large and growing teacher shortage. Before the pandemic, schools across the nation needed an estimated additional 100,000 certified teachers, resulting in key positions going unfilled, granting of emergency certifications, or teachers teaching out of their certification area. Shortages of certified teachers disproportionately impact schools with higher percentages of students of color, which have a higher proportion of teachers that are uncertified and higher shares of inexperienced teachers, exacerbating educational disparities. President Biden is calling for investments to improve the impact of new teachers entering the profession, increase retention rates, and increase the number of teachers of color, all of which will improve student outcomes.
President Biden’s American Families Plan will:
Address teacher shortages, improve teacher preparation, and strengthen pipelines for underrepresented teachers, including teachers of color. Our country faces a serious teacher shortage problem, which disproportionately impacts students of color. The percentage of teachers in their first or second year of teaching in schools with the highest percentage of students of color is 7 percentage points higher than schools with the lowest percentage of students of color (17 percent vs. 10 percent). The percentage of teachers who are uncertified is more than three times as large (4.8 percent vs. 1.3 percent). At the same time, while teachers of color can have a particularly strong impact on students of color, around one in five teachers are people of color, compared to more than half of K-12 public school students. These disparities help drive gaps in student outcomes. Strengthening the teacher pipeline and improving teacher preparation, supporting teachers so they stay in the classroom, and investing in the recruitment and preparation of underrepresented teachers will help narrow persistent educational disparities. President Biden is calling on Congress to invest in America’s teachers, including by doubling scholarships for future teachers from $4,000 to $8,000 per year, which would help underrepresented teachers, including teachers of color, access high-quality teacher preparation programs that best prepare them for the work ahead. The plan also will invest $2.8 billion in Grow Your Own programs and year-long, paid teacher residency programs, which have a greater impact on student outcomes, teacher retention, and are more likely to enroll underrepresented teacher candidates, including candidates of color; and invest $400 million in teacher preparation programs at HBCUs, TCUs, and MSIs.
Support the development of special education teachers. There has been a 17 percent decline in the number of special educators over the last decade. Additionally, while only about half of the students receiving special education services are white, approximately 82 percent of special education teachers are white. The American Families Plan will invest $900 million in personnel preparation funds under the Individuals with Disabilities Education Act (IDEA), funding pathways to additional certifications, and strengthening existing teacher preparation programs for special educators.
Help current teachers earn in-demand credentials. Many teachers are eager to answer the call to get certified in areas their schools need, like bilingual education, but are deterred due to the high cost of getting an additional certification. President Biden is calling on Congress to create a new fund to provide more than 100,000 educators with the opportunity to obtain additional certifications in high-demand areas like special education, bilingual education, and certifications that improve teacher performance. This will particularly benefit students with disabilities and English learners.
Invest in educator leadership. Millions of teachers – and the students they educate – would stand to benefit from greater mentorship and leadership opportunities. President Biden is calling on Congress to invest $2 billion to support programs that leverage teachers as leaders, such as high-quality mentorship programs for new teachers and underrepresented teachers, including teachers of color.
High-quality early care and education helps ensure that children can take full advantage of education and training opportunities later in life, especially for children from low-income families, who face learning disparities before they even can go to preschool. One study by Nobel Laureate James Heckman found that every dollar invested in a high-quality, comprehensive birth to five program for the most economically disadvantaged children resulted in $7.30 in benefits as children grew up healthier, were more likely to graduate high school and college, and earned more as adults. But we have grave disparities when it comes to child care in our country. One analysis finds that more than half of Latino and Native American families live in child care deserts. Difficulty finding high-quality, affordable child care leads some parents, especially mothers, to drop out of the labor force entirely, some to reduce their work hours, and others to turn down a promotion – leading to lifetime consequences in terms of earnings, savings, and retirement. Lack of affordable child care can be especially challenging for the families of the nearly 7 in 10 Black women who are their families’ primary or sole breadwinners.
President Biden’s American Families Plan will:
Ensure low- and middle-income families can access affordable child care for children under the age of five. Under the President’s plan, families will pay only a portion of their income based on a sliding scale. For the most hard-pressed working families, child care costs for their young children would be fully covered and families earning 1.5 times their state median income will spend no more than 7 percent of their income on child care for their young children. The plan will also provide families with a range of inclusive and accessible options to choose from for their child, from child care centers to family child care providers to Early Head Start programs.
Invest in high-quality care. The last time the U.S. prioritized major, long-term investments in child care was when President Roosevelt signed the Lanham Act to provide free, high-quality child care in an effort to support women going to work during World War II. Not only did it enable women to work, but children who participated experienced long-lasting economic benefits, proving most beneficial for the most disadvantaged children. Under the President’s plan, child care providers will receive funding to support the true cost of quality early childhood education–including a developmentally appropriate curriculum, small class sizes, and culturally and linguistically responsive environments that are accessible and inclusive of children with disabilities. These investments support positive interactions between educators and children that promote children’s social-emotional and cognitive development.
Invest in the care workforce, including the women of color who make up a substantial percentage of the field. More investment is needed to support early childhood providers and educators, more than nine in ten of whom are women and more than four and ten of whom are women of color. They are among the most underpaid workers in the country. The typical child care worker earned $12.24 per hour in 2020, and one report found nearly half rely on public income support programs. The American Families Plan includes a $15 minimum wage for early childhood educators and ensures that those with similar qualifications as kindergarten teachers receive comparable compensation and benefits.
When fully implemented, the President’s plan will provide 3 million children from low- and middle-income families with high quality care, saving the average family $14,800 a year on child care expenses.
Paid family and medical leave supports workers and families and is a critical investment in the strength and equity of our economy. Paid leave has been found to reduce racial disparities in wage loss between workers of color and white workers, improve child health and well-being, support employers by improving employee retention and reducing turnover costs, and increase women’s labor force participation. However, currently, 95 percent of the lowest wage workers, mostly women and workers of color, lack access to any paid family leave. Sixty-two percent of Black adults and 73 percent of Latino adults are either ineligible for or cannot afford to take unpaid leave, compared to 60 percent of white adults. Additionally, Black and Latina mothers are more likely than white women to report being let go by an employer or quitting their jobs after giving birth in order to have some leave.
President Biden’s American Families Plan will:
Create a national comprehensivepaid family and medical leave program. Paid family and medical leave can help reduce racial disparities in wage loss between workers of color and white workers. People with disabilities may also have less access to paid leave due to higher rates of part time and low wage employment. The program will ensure workers receive partial wage replacement to take time to bond with a new child, care for a seriously ill loved one, deal with a loved one’s military deployment, find safety from sexual assault, stalking, or domestic violence, heal from their own serious illness, or take time to deal with the death of a loved one. It will guarantee twelve weeks of paid parental, family, and personal illness/safe leave by year 10 of the program, and also ensure workers get three days of bereavement leave per year starting in year one. The program will provide workers up to $4,000 a month, with a minimum of two-thirds of average weekly wages replaced, rising to 80 percent for the lowest wage workers. The plan has an inclusive definition of family, ensuring workers can care for and be cared by a loved one who is not related by blood, which will greatly impact LGBTQ individuals and people with disabilities. We estimate this program will cost $225 billion over a decade.
The pandemic has added urgency to the moral travesty of nutrition insecurity among children, which disproportionately affects low-income families and children of color. No one should have to worry about whether they can provide nutritious food for themselves or their children. A poor diet jeopardizes a child’s ability to learn and succeed in school. Nutrition insecurity can also have long-lasting negative impact on overall health and put children at higher risk for diseases such as diabetes, heart disease, and high blood pressure.
President Biden’s American Families Plan will:
Expand summer EBT to all eligible children nationwide. The Summer EBT Demonstrations help low-income families with children eligible for free- and reduced-price meals during the school year purchase food during the summer. The American Families Plan builds on the American Rescue Plan’s support for Summer Pandemic-EBT by making the successful program permanent and available to all 29 million children receiving free- and reduced-price meals. Research shows that this program decreases food insecurity among children and led to positive changes in nutritional outcomes.
Expand school meal programs. Currently, just 70 percent of eligible schools have adopted Community Eligibility Provision (CEP), which allows high-poverty schools to provide meals free of charge to all of their students—breaking down barriers for students who may be eligible for school meals but may not apply for them due to stigma or not fully understanding the application process. The President’s plan will allow more schools in high poverty districts to offer meals free of charge to all of their students by reimbursing a higher percentage of meals at the free reimbursement rate through CEP. Additionally, the plan will target elementary schools by reimbursing an even higher percentage of meals at the free reimbursement through CEP and lowering the threshold for CEP eligibility for elementary schools. The plan will also expand direct certification to automatically enroll more students for school meals based on Medicaid and Supplemental Security Income data.
Facilitate re-entry for formerly incarcerated individuals through SNAP eligibility. Individuals convicted of a drug-related felony are currently ineligible to receive SNAP benefits unless a state has taken the option to eliminate or modify this restriction. Denying these individuals—many of whom are parents of young children—SNAP benefits jeopardizes nutrition security and poses a barrier to re-entry into the community in a population that already faces significant hurdles to obtaining employment and stability. SNAP is a critical safety net for many individuals as they search for employment to support themselves and their families. This restriction disproportionately impacts African Americans, who are convicted of drug offenses at much higher rates than white Americans.
TAX CUTS FOR AMERICAN FAMILIES AND WORKERS
While the American Rescue Plan provided meaningful relief for hundreds of millions of Americans, that is just a first step. Now is the time to build back better, to help families and workers who for too long have felt the squeeze of stagnating wages and an ever-increasing cost-of-living. Direct assistance to families in the form of tax credits paid on a regular basis lifts children and families out of poverty, makes it easier for families to make ends meet, and boosts the academic and economic performance of children over time.
President Biden’s American Families Plan will:
Extend expanded ACA premiums tax credits in the American Rescue Plan. Health care should be a right, not a privilege, and Americans facing illness should never have to worry about how they are going to pay for their treatment. No one should face a choice between buying life-saving medications or putting food on the table. President Biden has a plan to build on the Affordable Care Act and lower prescription drug costs for everyone by letting Medicare negotiate prices, reducing health insurance premiums and deductibles for those who buy coverage on their own, creating a public option and the option for people to enroll in Medicare at age 60, and closing the Medicaid coverage gap to help millions of Americans gain health insurance. The American Families Plan will build on the American Rescue Plan and continue our work to make health care more affordable. The biggest improvement in health care affordability since the Affordable Care Act, the American Rescue Plan provided two years of lower health insurance premiums for those who buy coverage on their own. With these changes, about three in four uninsured Black adults and nearly four in five uninsured Hispanic or Latino adults are now eligible for low-cost health care. The American Families Plan will make those premium reductions permanent, a $200 billion investment. As a result, nine million people will save hundreds of dollars per year on their premiums, and four million uninsured people will gain coverage. The Families Plan will also invest in maternal health and support the families of veterans receiving health care services.
Extend the Child Tax Credit (CTC) increases in the American Rescue Plan through 2025 and make the CTC permanently fully refundable. The President is calling for the Child Tax Credit expansion, first enacted in the American Rescue Plan, to be extended. This legislation expands the Child Tax Credit from $2,000 per child to $3,000 per child six-years old and above, and $3,600 per child for children under six. It also makes 17-year-olds eligible for the first time and makes the credit fully refundable on a permanent basis, so that low-income families—the families that need the credit the most—can benefit from the full tax credit. The expanded Child Tax Credit in the American Rescue Plan will benefit nearly 66 million children, and is the single largest contributor to the plan’s historic reductions in child poverty, including by 52 percent for Black children, 45 percent for Latino children, 37 percent for Asian American, Native Hawaiian, and Pacific Islander children, and 61 percent for Native American children.
Permanently increase tax credits to support families with child care needs. To help even more low- and middle-income families, President Biden is calling on Congress to make permanent the temporary Child and Dependent Care Tax Credit (CDCTC) expansion enacted in the American Rescue Plan. Families will get back as a tax credit as much as half of their spending on child care for children under age 13, so that they can receive a total of up to $4,000 for one child or $8,000 for two or more children. The CDCTC will be fully refundable, making the credit more equitable by allowing low-income working families to receive the full value of the credit towards their eligible child care expenses regardless of how much they owe in taxes. This is a dramatic expansion of support to low- and middle-income families. In 2019, a family claiming a CDCTC for the previous year got less than $600 on average towards the cost of care, and many low-income families got nothing.
Make the Earned Income Tax Credit expansion for childless workers permanent. President Biden believes our tax code should reward work and not wealth. And that means rewarding workers who work hard every day at modest wages to provide their communities with essential services. Before this year, the federal tax code taxed low-wage childless workers into poverty or deeper into poverty — the only group of workers it treated this way. The American Rescue Plan addressed this problem by roughly tripling the EITC for childless workers, benefitting 17 million low-wage workers, many of whom are essential workers including cashiers, cooks, delivery drivers, food preparation workers, and childcare providers. For example, a childless worker who works 30 hours per week at $9 per hour earns income that, after taxes, leaves them below the federal poverty line. By increasing her EITC to more than $1,100, this EITC expansion helps pull such workers out of poverty. The President is calling on Congress to make this expansion permanent. Extending these changes will give a critical boost in earnings of an estimated 2.8 billion Black, 2.8 million Latino, and 678,000 Asian American workers.
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President Joe Biden is expected to lay out his American Families Plan – a $1 trillion investment “in our kids, our families and our economic future” over 10 years, including universal pre-K, paid parental leave, child care, free community college and how he proposes to pay for it ($800 billion in tax enforcement, higher rates for the wealthiest payers and corporations) – in his first speech to the joint session of Congress on the eve of his 100th day in office.
The White House provided a fact sheet:
Today, President Biden announced the American Families Plan, an investment in our kids, our families, and our economic future.
In March, the President signed into law the American Rescue Plan, which continues to provide immediate relief to American families and communities. Approximately 161 million payments of up to $1,400 per person have gone out to households, schools are reopening, and 100 percent of Americans ages 16 and older are now eligible for a COVID-19 vaccine. The Rescue Plan is projected to lift more than five million children out of poverty this year, cutting child poverty by more than half. While too many Americans are still out of work, we are seeing encouraging signs in the labor market, as businesses begin to rehire and some of the hardest hit sectors begin to reopen.
But the President knows that we need to do more. It is not enough to restore where we were prior to the pandemic. We need to build a stronger economy that does not leave anyone behind – we need to build back better. President Biden knows a strong middle class is the backbone of America. He knows it should be easier for American families to break into the middle class, and easier to stay in the middle class. He knows that we need to continue to enable those who dropped out of the workforce – particularly the approximately two million women who left due to COVID – to rejoin and stay in the workforce. And, he knows that, unlike in past decades, policies to make life easier for American families must focus on bringing everyone along: inclusive of gender, race, or place of residence – urban, suburban, or rural.
The American Jobs Plan and the American Families Plan are once-in-a-generation investments in our nation’s future. The American Jobs Plan will create millions of good jobs, rebuild our country’s physical infrastructure and workforce, and spark innovation and manufacturing here at home. The American Families Plan is an investment in our children and our families—helping families cover the basic expenses that so many struggle with now, lowering health insurance premiums, and continuing the American Rescue Plan’s historic reductions in child poverty. Together, these plans reinvest in the future of the American economy and American workers, and will help us out-compete China and other countries around the world.
To grow the middle class, expand the benefits of economic growth to all Americans, and leave the United States more competitive, President Biden’s American Families Plan will:
Add at least four years of free education. Investing in education is a down payment on the future of America. As access to high school became more widely available at the turn of the 20th Century, it made us the best-educated and best-prepared nation in the world. But everyone knows that 12 years is not enough today. The American Families Plan will make transformational investments from early childhood to postsecondary education so that all children and young people are able to grow, learn, and gain the skills they need to succeed. It will provide universal, quality-preschool to all three- and four- year-olds. It will provide Americans two years of free community college. It will invest in making college more affordable for low- and middle-income students, including students at Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), and institutions such as Hispanic-serving institutions, Asian American and Native American Pacific Islander-serving institutions, and other minority-serving institutions (MSIs). And, it will invest in our teachers as well as our students, improving teacher training and support so that our schools become engines of growth at every level.
Provide direct support to children and families. Our nation is strongest when everyone has the opportunity to join the workforce and contribute to the economy. But many workers struggle to both hold a full-time job and care for themselves and their families. The American Families Plan will provide direct support to families to ensure that low- and middle-income families spend no more than seven percent of their income on child care, and that the child care they access is of high-quality. It will also provide direct support to workers and families by creating a national comprehensive paid family and medical leave program that will bring the American system in line with competitor nations that offer paid leave programs. The system will also allow people to manage their health and the health of their families. And, it will provide critical nutrition assistance to families who need it most and expand access to healthy meals to our nation’s students – dramatically reducing childhood hunger.
Extend tax cuts for families with children and American workers. While the American Rescue Plan provided meaningful relief for hundreds of millions of Americans, too many families and workers feel the squeeze of too-low wages and the high costs of meeting their basic needs and their aspirations. At the same time, the wealthiest Americans continue to get further and further ahead. The American Families Plan will extend key tax cuts in the American Rescue Plan that benefit lower- and middle-income workers and families, including the Child Tax Credit, the Earned Income Tax Credit, and the Child and Dependent Care Tax Credit. In addition to making it easier for families to make ends meet, tax credits for working families have been shown to boost child academic and economic performance over time. The American Families Plan will also extend the expanded health insurance tax credits in the American Rescue Plan. These credits are providing premium relief that is lowering health insurance costs by an average of $50 per person per month for nine million people, and will enable four million uninsured people to gain coverage.
Leading economic research has shown that the investments proposed in the American Families Plan will yield significant economic returns – boosting productivity and economic growth, producing a larger, more productive, and healthier workforce on a sustained basis, and generating savings to states and the federal government. Evidence shows that a dollar invested in high-quality early childhood programs for low-income children will result in up to $7.30 in benefits, including increased wages, improved health, and reduced crime. Parental paid leave has been shown to keep mothers in the workforce, increasing labor force participation and boosting economic growth. And, sustained tax credits for families with children have been found to yield a lifetime of benefits, ranging from higher educational attainment to higher lifetime earnings
In all, the American Families Plan includes $1.8 trillion in investments and tax credits for American families and children over ten years. It consists of about $1 trillion in investments and $800 billion in tax cuts for American families and workers. Alongside the American Families Plan, the President will be proposing a set of measures to make sure that the wealthiest Americans pay their share in taxes, while ensuring that no one making $400,000 per year or less will see their taxes go up. When combined with President Biden’s American Jobs Plan, this legislation will be fully paid for over 15 years, and will reduce deficits over the long term.
ADD AT LEAST FOUR YEARS OF FREE PUBLIC EDUCATION, CLOSE EQUITY GAPS, AND MAKE COLLEGE MORE AFFORDABLE
Early in the 20th century, the United States set a new global standard by expanding access to free public education through high school. Direct public investment in our children’s future propelled U.S. economic growth and enhanced our global competitiveness. Now, mounting evidence suggests that 12 years of school is no longer sufficient to prepare our students for success in today’s economy. Research tells us that we must invest early to support our children’s development and readiness for academic success; our transforming economy requires that we provide every student the opportunity to obtain a postsecondary degree or certificate.
That is why the American Families Plan calls for an additional four years of free, public education for our nation’s children. Specifically, President Biden is calling for $200 billion for free universal pre-school for all three- and four-year-olds and $109 billion for two years of free community college so that every student has the ability to obtain a degree or certificate. In addition, he is calling for an over $80 billion investment in Pell Grants, which would help students seeking a certificate or a two- or four-year degree. Recognizing that access to postsecondary education is not enough, the American Families Plan includes $62 billion to invest in evidence-based strategies to strengthen completion and retention rates at community colleges and institutions that serve students from our most disadvantaged communities. This is alongside a $46 billion investment in HBCUs, TCUs, and MSIs. President Biden is also calling for $9 billion to train, equip and diversify American teachers in order to ensure that our high school graduates are ready for success. These investments, combined with those laid out in the President’s American Jobs Plan, will boost earnings, expand employment opportunities, and enable the U.S. to win the 21st century.
UNIVERSAL PRE-SCHOOL FOR ALL THREE- AND FOUR-YEAR-OLDS
Preschool is critical to ensuring that children start kindergarten with the skills and supports that set them up for success in school. In fact, research shows that kids who attend universal pre-K are more likely to take honors classes and less likely to repeat a grade, and another study finds low-income children who attend universal programs do better in math and reading as late as eighth grade. Unfortunately, many children, but especially children of color and low-income children, do not have access to the full range of high-quality pre-school programs available to their more affluent peers. In addition to providing critical benefits for children, preschool has also been shown to increase labor force participation among parents – especially women — boosting family earnings and driving economic growth. By some estimates, the benefits of a universal pre-K system to U.S. GDP are more than three times greater than the investment needed to provide this service.
President Biden is calling for a national partnership with states to offer free, high-quality, accessible, and inclusive preschool to all three-and four-year-olds, benefitting five million children and saving the average family $13,000, when fully implemented. This historic $200 billion investment in America’s future will prioritize high-need areas and enable communities and families to choose the settings that work best for them. The President’s plan will also ensure that all publicly-funded preschool is high-quality, with low student-to-teacher ratios, high-quality and developmentally appropriate curriculum, and supportive classroom environments that are inclusive for all students. The President’s plan will leverage investments in tuition-free community college and teacher scholarships to support those who wish to earn a bachelor’s degree or another credential that supports their work as an educator, or to become an early childhood educator. And, educators will receive job-embedded coaching, professional development, and wages that reflect the importance of their work. All employees in participating pre-K programs and Head Start will earn at least $15 per hour, and those with comparable qualifications will receive compensation commensurate with that of kindergarten teachers. These investments will give American children a head start and pave the way for the best-educated generation in U.S. history.
FREE COMMUNITY COLLEGE AND OTHER POSTSECONDARY EDUCATION INVESTMENTS For much of the 20th century, graduating from high school was a gateway to a stable job and a living wage. But over the last 40 years, we have seen the most growth in jobs requiring higher levels of job preparation, including education and training. Today, 70 percent of jobs are held by people with more than a high school degree. American workers need and deserve additional support to build their skills, increase their earnings, remain competitive, and share in the benefits of the new economy. President Biden’s plan will expand access to affordable postsecondary education, laying the groundwork for innovation and inclusive economic growth for all Americans. Specifically, President Biden’s plan will:
Offer two years of free community college to all Americans, including DREAMers. The current crisis has led to a steep college enrollment decline, particularly for low-income students and students of color. As of Fall 2020, high-minority and high-poverty high schools saw a 9.4 percent and 11.4 percent decline in college enrollment, respectively. But even before the pandemic, cost remained a barrier to attending and graduating from community college for many Americans. President Biden’s $109 billion plan will ensure that first-time students and workers wanting to reskill can enroll in a community college to earn a degree or credential for free. Students can use the benefit over three years and, if circumstances warrant, up to four years, recognizing that many students’ lives and other responsibilities can make full-time enrollment difficult. If all states, territories, and Tribes participate, about 5.5 million students would pay $0 in tuition and fees.
Provide up to approximately $1,400 in additional assistance to low-income students by increasing the Pell Grant award. While nearly 7 million students depend on Pell Grants, the grant has not kept up with the rising cost of college. Over the last 50 years, the value of Pell Grants has plummeted. The maximum grant went from covering nearly 80 percent of the cost of a four-year college degree to under 30 percent — leading millions of low-income students to take out debt to finance their education. One in three community college students receive Pell Grants to pay for their education. Among students of color, nearly 60 percent of Black, half of American Indian or Alaska Native, almost half of Latino, and over one-third of Native Hawaiian or Pacific Islander students rely on Pell Grants to pay for college. The American Families Plan will increase the maximum Pell Grant award by approximately $1,400, a down payment on President Biden’s commitment to double the maximum award. The plan also allows DREAMers to access Pell Grants.
Increase college retention and completion rates. An education beyond high school can lead to higher pay, financial stability, social mobility, and better health outcomes. It also has public benefits such as a reduction in crime rates and higher civic engagement. However, far too many students enter college but do not graduate. Research shows that only approximately three out of five students finish any type of degree or certificate program within six years. To complete, students need additional support. The President is proposing a bold $62 billion grant program to invest in completion and retention activities at colleges and universities that serve high numbers of low-income students, particularly community colleges. States, territories, and Tribes will receive grants to provide funding to colleges that adopt innovative, proven solutions for student success, including wraparound services ranging from child care and mental health services to faculty and peer mentoring; emergency basic needs grants; practices that recruit and retain diverse faculty; transfer agreements between colleges; and evidence-based remediation programs.
Provide two years of subsidized tuition and expand programs in high-demand fields at HBCUs, TCUs, and MSIs. Research has found that HBCUs, TCUs, and MSIs are vital to helping underrepresented students move to the top of the income ladder. For example, while HBCUs are only three percent of four-year universities, their graduates make up approximately 80 percent of Black judges, half of Black lawyers and doctors, and 25 percent of Black undergraduates earning STEM degrees. Yet, these institutions have significantly less resources than other top colleges and universities, undermining their ability to grow and support more students. President Biden is calling on Congress to make a historic investment in HBCU, TCU, and MSI affordability. Specifically, he is calling for a new $39 billion program that provides two years of subsidized tuition for students from families earning less than $125,000 enrolled in a four-year HBCU, TCU, or MSI. The President is also calling for $5 billion to expand existing institutional aid grants to HBCUs, TCUs, and MSIs, which can be used by these institutions to strengthen their academic, administrative, and fiscal capabilities, including by creating or expanding educational programs in high-demand fields (e.g., STEM, computer sciences, nursing, and allied health), with an additional $2 billion directed towards building a pipeline of skilled health care workers with graduate degrees. These investments, combined with the $45 billion proposed in the American Jobs Plan targeted to these institutions, will enable America’s HBCUs, TCUs, and MSIs to tackle longstanding inequities in postsecondary education and make the U.S. more competitive on the global stage.
Address teacher shortages, improve teacher preparation, and strengthen pipelines for teachers of color. President Biden is calling on Congress to double scholarships for future teachers from $4,000 to $8,000 per year while earning their degree, strengthening the program, and expanding it to early childhood educators. The President’s plan also invests $2.8 billion in Grow Your Own programs and year-long, paid teacher residency programs, which have a greater impact on student outcomes, teacher retention, and are more likely to enroll teacher candidates of color. His plan targets $400 million for teacher preparation at HBCUs, TCUs, and MSIs and $900 million for the development of special education teachers.
Help current teachers earn in-demand credentials. Many teachers are eager to answer the call to get certified in areas their schools need, like special education, but are deterred due to the high cost of professional programs. President Biden is calling on Congress to invest $1.6 billion to provide educators with opportunities to obtain additional certifications in high-demand areas like special education, bilingual education, and certifications that improve teacher performance. This funding will support over 100,000 educators, with priority for public school teachers with at least two years of experience at schools with a significant portion of low-income students or significant teacher shortages. All funds will be available immediately, flowing through the states, and available until expended.
Invest in educator leadership. Millions of teachers – and the students they educate – would stand to benefit from greater mentorship and leadership opportunities. President Biden is calling on Congress to invest $2 billion to support programs that leverage teachers as leaders, such as high-quality mentorship programs for new teachers and teachers of color. These programs are proven tools to improve both student outcomesand teacher retention by providing new teachers with the support they need. The President’s plan will also leverage teachers as leaders of other key priorities within their school buildings, and compensate teachers for this work, recognizing the incredible expertise of our veteran educators, and their value in supporting the next generation of great teachers.
PROVIDE DIRECT SUPPORT TO CHILDREN AND FAMILIES
The hope of a middle-class life has gotten further and further out of reach for too many American families, as the costs of raising children – from child care to taking paid leave time to care for a new child or when a child is ill – have grown. Middle-class families and those trying to break into the middle class increasingly feel the strain of these rising costs, while wage growth has failed to keep up. These rising costs impact our economy as a whole as well. In part due to the lack of family friendly policies, the United States has fallen behind its competitors in female labor force participation. One study found that a lack of child care options costs the United States economy $57 billion per year in lost earnings, productivity, and revenue. Another study found that lack of paid leave options cost workers $22.5 billion each year in lost wages.
The high cost of child care continues to make it hard for parents – especially women — to work outside the home and provide for their families. Difficulty in finding high-quality, affordable child care leads some parents to drop out of the labor force entirely, some to reduce their work hours, and others to turn down a promotion. When a parent drops out of the workforce, reduces hours, or takes a lower-paying job early in their careers—even temporarily—there are lifetime consequences on earnings, savings, and retirement. These costs are especially significant for mothers and people of color, exacerbating inequality and harming the economic security of their families, as 91 percent of the income gains experienced by middle-class families over the last forty years were driven by women’s earnings.
High-quality early care and education lay a strong foundation so that children can take full advantage of education and training opportunities later in life. The evidence is clear: for early years, quality care is education. This especially important for children from low-income families, who too often start school without access to high-quality educational opportunities. A study by Nobel Laureate James Heckman found that every dollar invested in a high-quality, birth to five program for the most economically disadvantaged children resulted in $7.30 in benefits as children grew up healthier, were more likely to graduate high school and college, were less likely to be involved in crime, and earned more as adults.
Building on the American Jobs Plan’s investments in school and child care infrastructure and workforce training, President Biden’s American Families Plan will ensure low and middle-income families pay no more than 7 percent of their income on high-quality child care, saving the average family $14,800 per year on child care expenses, while also generating lifetime benefits for three million children, supporting hundreds of thousands of child care providers and workers, allowing roughly one million parents, primarily mothers, to enter the labor force, and significantly bolstering inclusive and equitable economic growth. Specifically, President Biden’s plan will invest $225 billion to:
Make care affordable. Families will pay only a portion of their income based on a sliding scale. For the most hard-pressed working families, child care costs for their young children would be fully covered and families earning 1.5 times their state median income will pay no more than 7 percent of their income. The plan will also provide families with a range of options to choose from for their child, from child care centers to family child care providers, Early Head Start, and public schools that are inclusive and accessible to all children.
Invest in high-quality care. Child care providers will receive funding to cover the true cost of quality early childhood care and education–including a developmentally appropriate curriculum, small class sizes, and culturally and linguistically responsive environments that are inclusive of children with disabilities. These investments support positive interactions that promote children’s social-emotional and cognitive development.
Invest in the care workforce. More investment is needed to support early childhood care providers and educators, more than nine in ten of whom are women and more than four and ten of whom are women of color. They are among the most underpaid workers in the country and nearly half receive public income support programs. The typical child care worker earned $12.24 per hour in 2020—while receiving few, if any, benefits, leading to high turnover and lower quality of care. This investment will mean a $15 minimum wage for early childhood staff and ensure that those with similar qualifications as kindergarten teachers receive comparable compensation and benefits. And, it will ensure child care workers receive job-embedded coaching and professional development, along with additional training opportunities funded by the American Jobs Plan and American Families Plan. These investments will lead to better quality care, while also enabling these workers to care for their own families, reducing government spending on income support programs and increasing tax revenues. The Families Plan will also invest in maternal health and support the families of veterans receiving health care services.
The United States has fallen behind our economic competitors in the number of women participating in the labor force. The pandemic has exacerbated this problem, pushing millions of people—especially women—out of the workforce, eroding more than 30 years of progress in women’s labor force participation and resulting in a $64 billion loss in wages and economic activity per year. A lack of family-friendly policies, such as paid family and medical leave for when a worker need time to care for a new child, a seriously ill family member, or recover from their own serious illness, has been identified as a key reason for the U.S. decline in competitiveness. The United States is one of the only countries in the world that doesn’t guarantee paid leave. Nearly one in four mothers return to work within two weeks of giving birth and one in five retirees left or were forced to leave the workforce earlier than planned to care for an ill family member. Further, today nearly four of five private sector workers have no access to paid leave. 95 percent of the lowest wage workers, mostly women and workers of color, lack any access to paid family leave.
Paid family and medical leave supports workers and families and is a critical investment in the strength and equity of our economy. President Biden’s American Families Plan will:
Create a national comprehensive paid family and medical leave program. The program will ensure workers receive partial wage replacement to take time to bond with a new child, care for a seriously ill loved one, deal with a loved one’s military deployment, find safety from sexual assault, stalking, or domestic violence, heal from their own serious illness, or take time to deal with the death of a loved one. It will guarantee twelve weeks of paid parental, family, and personal illness/safe leave by year 10 of the program, and also ensure workers get three days of bereavement leave per year starting in year one. The program will provide workers up to $4,000 a month, with a minimum of two-thirds of average weekly wages replaced, rising to 80 percent for the lowest wage workers. We estimate this program will cost $225 billion over a decade.
President Biden’s paid leave plan has broad benefits for working families and the economy as a whole. Studies have shown that, under state paid leave laws, new mothers are 18 percentage points more likely to be working a year after the birth of their child. In addition, paid leave can reduce racial disparities in wage loss between workers of color and white workers, improve child health and well-being, support employers by improving employee retention and reducing turnover costs, and increase women’s labor force participation. Over 30 million workers, including 67 percent of low-wage workers, do not have access to a single paid sick day. Low-wage and part-time workers, a majority of whom are women, are less likely to have access to paid sick days.
The COVID pandemic has highlighted the need for a national paid sick leave policy, to help workers and their loved ones quickly recover from short-term illness and prevent the spread of disease. Therefore, the President calls upon Congress to pass the Healthy Families Act which will require employers to allow workers to accrue seven days paid sick leave per year to seek preventative care for them or their family– such as getting a flu shot, recovering from short-term illness, or caring for a sick child or family member or a family member with disability-related needs.
The pandemic has added urgency to the issue of nutrition insecurity, which disproportionately affects low-income families and families of color. No one should have to worry about whether they can provide nutritious food for themselves or their children. A poor diet jeopardizes a child’s ability to learn and succeed in school. Nutrition insecurity can also have long-lasting negative impact on overall health and put children at higher risk for diseases such as diabetes, heart disease, and high blood pressure. Today, one-fifth of American children are obese, and research shows that childhood obesity increases the likelihood of obesity in adulthood. In addition to the incredible financial burden on the health care system, diet-related diseases carry significant economic and national security implications by decreasing work productivity, increasing job absenteeism, and threatening military readiness. A recent study found that U.S. children are getting their healthiest meals at school, demonstrating that school meals are one of the federal government’s most powerful tools for delivering nutrition security to children. To ensure the nutritional needs of families are met, President Biden’s plan will invest $45 billion to:
Expand summer EBT to all eligible children nationwide. The Summer EBT Demonstrations helps low-income families with children eligible for free and reduced-price meals during the school year purchase food during the summer. Research shows that this program decreases food insecurity among children and has led to positive changes in nutritional outcomes. The American Families Plan builds on the American Rescue Plan’s support for Summer Pandemic-EBT by investing more than $25 billion to make the successful program permanent and available to all 29 million children receiving free and reduced-price meals.
Expand school meal programs. The Community Eligibility Provision (CEP) allows high-poverty schools to provide meals free of charge to all of their students. It is currently available to individual schools, groups of schools within a district, or an entire district with at least 40 percent of students participating in the Supplemental Nutrition Assistance Program (SNAP). The program is particularly important because some families whose children would be eligible for free meals may not apply for them due to stigma or not fully understanding the application process. In addition, other families in high-poverty schools may still be facing food insecurity but make just enough to not qualify for free school meals. However, only 70 percent of eligible schools have adopted CEP, because some schools would receive reimbursement below the free meal rate. The President’s plan will fund $17 billion to expand free meals for children in the highest poverty districts (those with at least 40 percent of students participating in SNAP) by reimbursing a higher percentage of meals at the free reimbursement rate through CEP. Additionally, the plan will expand free meals for children in elementary schools by reimbursing an even higher percentage of meals at the free reimbursement through CEP and lowering the threshold for CEP eligibility for elementary schools to 25 percent of students participating in SNAP. Targeting elementary students will drive better long-term health outcomes by ensuring low-income children are receiving nutritious meals at an early age. The plan will also expand direct certification to automatically enroll more students for school means based on Medicaid and Supplemental Security Income data. This proposal will provide free meals to an additional 9.3 million children, with about 70 percent in elementary schools.
Launch a healthy foods incentive demonstration. To build on progress made during the Obama Administration to improve the nutrition standards of school meals, this new $1 billion demonstration will support schools that are further expanding healthy food offerings. For example, schools adopting specified measures that exceed current school meal standards will receive an enhanced reimbursement as an incentive.
Facilitate re-entry for formerly incarcerated individuals through SNAP eligibility. Individuals convicted of a drug-related felony are currently ineligible to receive SNAP benefits unless a state has taken the option to eliminate or modify this restriction. Denying these individuals—many of whom are parents of young children—SNAP benefits jeopardizes nutrition security and poses a barrier to re-entry into the community in a population that already faces significant hurdles to obtaining employment and stability. SNAP is a critical safety net for many individuals as they search for employment to support themselves and their families. This restriction disproportionately impacts African Americans, who are convicted of drug offenses at much higher rates than white Americans.
UNEMPLOYMENT INSURANCE REFORM
The unemployment insurance (UI) system is a critical lifeline to workers at the hardest times. During the pandemic, it saved millions from poverty and helped people put food on the table. But, the system is in desperate need of reform and strengthening. Too often Americans found themselves waiting weeks to get the benefits they deserved. Too often the benefits Americans would automatically receive would’ve been too low and would not have gone long enough absent Congress stepping in. Too often the safeguards to prevent fraud in the system have been insufficient. And it has been unemployed people of color who have borne the brunt of the UI system’s weaknesses. President Biden is committed to strengthening and reforming the system for the long term. That’s why he won $2 billion in the American Rescue Plan to put toward UI system modernization, equitable access, and fraud prevention. And, that’s why he wants to work with Congress to automatically adjust the length and amount of UI benefits unemployed workers receive depending on economic conditions. This will ensure future legislative delay doesn’t undermine economic recovery and it will enable permanent reform of the system to provide the safety net that workers deserve in the hardest times.
TAX CUTS FOR AMERICA’S FAMILIES AND WORKERS
While the American Rescue Plan provided meaningful relief for hundreds of millions of Americans, that is just a first step. Now is the time to build back better, to help families and workers who for too long have felt the squeeze of stagnating wages and an ever-increasing cost-of-living. Direct assistance to families in the form of tax credits paid on a regular basis lifts children and families out of poverty, makes it easier for families to make ends meet, and boosts the academic and economic performance of children over time. But if Congress does not act, millions of American families and workers will see their taxes go up at the end of the year.
President Biden believes we must extend the American Rescue Plan’s expanded tax credits that lifted millions of children out of poverty, made it easier for families to afford child care, and ensured that low-income workers without children would not continue to be taxed into poverty.
Specifically, President Biden’s plan will:
Extend expanded ACA premiums tax credits in the American Rescue Plan. Health care should be a right, not a privilege, and Americans facing illness should never have to worry about how they are going to pay for their treatment. No one should face a choice between buying life-saving medications or putting food on the table. President Biden has a plan to build on the Affordable Care Act and lower prescription drug costs for everyone by letting Medicare negotiate prices, reducing health insurance premiums and deductibles for those who buy coverage on their own, creating a public option and the option for people to enroll in Medicare at age 60, and closing the Medicaid coverage gap to help millions of Americans gain health insurance. The American Families Plan will build on the American Rescue Plan and continue our work to make health care more affordable. The American Rescue Plan included a historic investment in reducing Americans’ health care costs. The biggest improvement in health care affordability since the Affordable Care Act, the American Rescue Plan provided two years of lower health insurance premiums for those who buy coverage on their own, saving families an average of $50 per person per month. The American Families Plan will make those premium reductions permanent, a $200 billion investment. As a result, nine million people will save hundreds of dollars per year on their premiums, and four million uninsured people will gain coverage. The Families Plan will also invest in maternal health and support the families of veterans receiving health care services.
Extend the Child Tax Credit increases in the American Rescue Plan through 2025 and make the Child Tax Credit permanently fully refundable. The President is calling for the Child Tax Credit expansion, first enacted in the American Rescue Plan, to be extended. This legislation expands the Child Tax Credit from $2,000 per child to $3,000 per child for six-years old and above, and $3,600 per child for children under six. It also makes 17-year-olds eligible for the first time and makes the credit fully refundable on a permanent basis, so that low-income families—the families that need the credit the most—can benefit from the full tax credit. The expanded Child Tax Credit in the American Rescue Plan benefited nearly 66 million children, and it was the single largest contributor to the plan’s historic reductions in child poverty.
For a family with two parents earning a combined $100,000 per year and two children under six, the Child Tax Credit expansion means an additional $3,200 per year in tax relief. For a family with two parents earning a combined $24,000 per year and two children under six, the expansion means even more, with a credit increase of than $4,400 because the full credit was not previously fully available to them.
The credit would also be delivered regularly. This means that families will not need to wait until tax season to receive a refund. Instead, they will receive regular payments that allow them to cover household expenses as they arise.
The American Families Plan will make permanent the full refundability of the Child Tax Credit, while extending the other expansions to the Child Tax Credit through 2025—when the 2017 law’s individual provisions expire. The President is committed to working with Congress to achieve his ultimate goal of making permanent the Child Tax Credit as well as all of the expansions he signed into law in the American Rescue Plan.
Permanently increase tax credits to support families with child care needs. To help families afford child care, President Biden is calling on Congress to make permanent the temporary Child and Dependent Care Tax Credit (CDCTC) expansion enacted in the American Rescue Plan. Families will receive a tax credit for as much as half of their spending on qualified child care for children under age 13, up to a total of $4,000 for one child or $8,000 for two or more children. A 50 percent reimbursement will be available to families making less than $125,000 a year, while families making between $125,000 and $400,000 will receive a partial credit with benefits at least as generous as those they receive today. The credit can be used for expenses ranging from full-time care to after school care to summer care.
This is a dramatic expansion of support to low- and middle-income families. In 2019, a family claiming a CDCTC for the previous year got less than $600 on average towards the cost of care, and many low-income families got nothing. If Congress fails extend the CDCTC expansion, more than 6 million families could see their taxes go up at the end of the year – many by thousands of dollars – making obtaining affordable child care more difficult. Importantly, this tax credit works in tandem with the American Families Plan’s direct investments in childcare affordability for families with young children.
Make the Earned Income Tax Credit Expansion for childless workers permanent. Before this year, the federal tax code taxed low-wage childless workers into poverty or deeper into poverty — the only group of workers it treated this way. The American Rescue Plan addressed this problem by roughly tripling the EITC for childless workers, benefitting 17 million low-wage workers, many of whom are essential workers including cashiers, cooks, delivery drivers, food preparation workers, and childcare providers. For example, a childless worker who works 30 hours per week at $9 per hour earns income that, after taxes, leaves them below the federal poverty line. By increasing her EITC to more than $1,100, this EITC expansion helps pull such workers out of poverty.
The President is calling on Congress to make this expansion permanent. President Biden believes our tax code should reward work and not wealth. And that means rewarding workers who work hard every day at modest wages to provide their communities with essential services.
Give IRS the authority to regulate paid tax preparers. Tax returns prepared by certain types of preparers have high error rates. These preparers charge taxpayers large fees while exposing them to costly audits. As preparers play a crucial role in tax administration, and will be key to helping many taxpayers claim the newly-expanded credits, IRS oversight of tax preparers is needed. The President is calling on Congress to pass bipartisan legislation that will give the IRS that authority.
TAX REFORM THAT REWARDS WORK – NOT WEALTH
The President’s tax agenda will not only reverse the biggest 2017 tax law giveaways, but reform the tax code so that the wealthy have to play by the same rules as everyone else. It will ensure that high-income Americans pay the tax they owe under the law—ending the unfair system of enforcement that collects almost all taxes due on wages, while regularly collecting a smaller share of business and capital income. The plan will also eliminate long-standing loopholes, including lower taxes on capital gains and dividends for the wealthy, that reward wealth over work. Importantly, these reforms will also rein in the ways that the tax code widens racial disparities in income and wealth.
President Biden’s plan uses the resulting revenue to rebuild the middle class, investing in education and boosting wages. It will also give tax relief to middle-class families, dramatically reducing child poverty and cutting the cost of child care in half for many families. The result of the President’s individual tax reforms will be a tax code with fewer loopholes for the wealthy and more opportunity for low- and middle-income Americans.
Altogether, these tax reforms focused on the highest income Americans would raise about $1.5 trillion across the decade. In combination with the American Jobs Plan, which produces long-term deficit reduction through corporate tax reform, all of the investments would be fully paid for over the next 15 years.
President Biden’s plan will:
Revitalize enforcement to make the wealthy pay what they owe. We have a two-tiered system of tax administration in this country: regular workers pay the taxes they owe on wages and salaries while some wealthy taxpayers aggressively plan to avoid the tax laws. Those with the highest incomes generate income in opaque categories where misreporting rates can reach 55 percent. A recent study found that the top one percent failed to report 20 percent of their income and failed to pay over $175 billion in taxes that they owed. But today, the IRS does not even have the resources to fully investigate this evasion. As a result of budget cuts, audit rates on those making over $1 million per year fell by80 percent between 2011-2018.
The President’s proposal would change the game—by making sure the wealthiest Americans play by the same set of rules as all other Americans.It would require financial institutions to report information on account flows so that earnings from investments and business activity are subject to reporting more like wages already are.It would also increase investment in the IRS, while ensuring that the additional resources go toward enforcement against those with the highest incomes, rather than Americans with actual income less than $400,000. Additional resources would focus on large corporations, businesses, and estates, and higher-income individuals. Altogether, this plan would raise $700 billion over 10 years.
Increase the top tax rate on the wealthiest Americans to 39.6 percent. One of the 2017 tax cut’s clearest giveaways to the wealthy was cutting the top income tax rate from 39.6 percent to 37 percent, exclusively benefitting the wealthiest households—those in the top one percent. This rate cut alone gives a couple with $2 million in taxable an annual tax cut of more than $36,400. The President’s plan restores the top tax bracket to what it was before the 2017 law, returning the rate to 39.6 percent, applying only to those within the top one percent.
End capital income tax breaks and other loopholes for the very top. The President’s tax reform will end one of the most unfair aspects of our tax system: that the tax rate the wealthy pay on capital gains and dividends is less than the tax rate that many middle-class families pay on their wages. Households making over $1 million—the top 0.3 percent of all households—will pay the same 39.6 percent rate on all their income, equalizing the rate paid on investment returns and wages. Moreover, the President would eliminate the loophole that allows the wealthiest Americans to entirely escape tax on their wealth by passing it down to heirs. Today, our tax laws allow these accumulated gains to be passed down across generations untaxed, exacerbating inequality. The President’s plan will close this loophole, ending the practice of “stepping-up” the basis for gains in excess of $1 million ($2.5 million per couple when combined with existing real estate exemptions) and making sure the gains are taxed if the property is not donated to charity. The reform will be designed with protections so that family-owned businesses and farms will not have to pay taxes when given to heirs who continue to run the business. Without these changes, billions in capital income would continue to escape taxation entirely.
The President is also calling on Congress to close the carried interest loophole so that hedge fund partners will pay ordinary income rates on their income just like every other worker. While equalizing tax rates on wages and capital gains will address this disparity, permanently eliminating carried interest is an important structural change that is necessary to ensure that we have a tax code that treats all workers fairly. The President would also end the special real estate tax break—that allows real estate investors to defer taxation when they exchange property—for gains greater than $500,000, and the President would also permanently extend the current limitation in place that restricts large, excess business losses, 80 percent of which benefits those making over $1 million.
Finally, high-income workers and investors generally pay a 3.8 percent Medicare tax on their earnings, but the application is inconsistent across taxpayers due to holes in the law. The President’s tax reform would apply the taxes consistently to those making over $400,000, ensuring that all high-income Americans pay the same Medicare taxes.
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$311 Billion Infrastructure Plan – Largest in the Nation & Most Expansive in State’s History – Will Create Thousands of Jobs Across the State
First-in-the-Nation Program to Make Broadband Internet Affordable – $15 Broadband Plans Must Be Offered to Low-Income Families
Enhances Public Safety by Authorizing the Withholding of 50 Percent of State and Federal Funds from Jurisdictions that Fail to Produce a Police Reform Plan; Requires the Attorney General to Appoint a Monitor to Ensure Safe Policing
Directs $2.3 Billion in Federal Child Care Resources to Expand Availability, Quality and Affordability of Child Care Across the State; Enacts Employer Child Care Credits
$29 Billion in Public and Private Green Economy Investments
Establishes Prevailing Wage & Buy American Requirement
Protects Renters by Creating $2.4 Billion Rent Relief Program
Enhances Quality of Care at Nursing Homes with Patient-Centered Reforms
Provides $1 Billion in Small Business and Arts Relief and Recovery Assistance
Enacts Middle Class Property Tax Credit and Continues Middle Class Tax Cut; Expected to Save 4.8 Million New Yorkers Over $2.2 Billion This Year
$29.5 Billion School Aid, 11% Increase, Record Funding
Governor Led National Effort for State and Local Federal Funding with New York State Receiving $12.6 Billion; Budget Closes Remaining Gap; Adds $3.5 Billion in Tax Revenue and Invests in COVID Response and Recovery
Governor Andrew M. Cuomo today announced highlights of the FY 2022 Enacted Budget to reimagine, rebuild and renew New York in the wake of the ongoing COVID-19 pandemic.
The Budget supports the Governor’s $311 billion infrastructure plan – the largest in the nation and the most expansive in State’s history – that will create thousands of jobs across the State.
The Budget establishes a first-in-the-nation program to provide affordable internet by requiring internet service providers to offer an affordable $15 per month high-speed internet plan to qualified low-income households.
The Budget enhances public safety by authorizing the withholding of up to 50 percent of State and Federal funds from jurisdictions that fail to produce a police reform plan and comply with the Governor’s Executive order. The Governor may require that the Attorney General appoint a monitor over the police force until the plan is adopted.
The Budget directs $2.3 billion in federal child care resources to expand availability, quality and affordability of child care across the state, and enhances the Employer Provided Child Care Credit to provide meaningful incentives to employers to help them provide child care to their employees.
The Budget supports $29 billion in public and private green economy investments to create 12,400 megawatts of green energy – enough to power 6 million homes – helping to fulfill the goals of New York’s Climate Leadership and Community Protection Act and also spur the COVID economic recovery. The investments include the largest offshore wind program in the nation, plans to make New York a global wind energy manufacturing powerhouse, constructing a green energy transmission superhighway, a public-private partnership to build nearly 100 renewable energy projects and supporting transit agencies’ transition to electric busses.
The Budget ensures that New York uses Buy American principles in manufacturing of renewable components. The Budget also requires prevailing wage for construction labor peace agreements for operations and manufacturing.
The Budget ensures access to fair and safe housing and protects renters by establishing a $2.4 billion rent relief program using Federal and State funds.
The Enacted Budget includes comprehensive nursing home reform legislation to help ensure facilities prioritize patients over profits, establishing minimum thresholds for nursing home spending on direct resident care and staffing, and investing $32 million annually to implement the reforms, while capping profits and performing related party transactions to drive funding to where it matters most, the patients.
The Budget enacts small business and arts relief and recovery assistance, a robust $1 billion relief package for small businesses, arts, entertainment and restaurant relief to help them recover from the impacts of the pandemic. It includes $865 million in grants and $139 million in tax credits.
The Budget also continues the phase-in of the middle class tax cut, which is expected to save 4.8 million New Yorkers over $2.2 billion this year.
From the beginning of the pandemic, Governor Cuomo led the national effort to secure Federal funding for state and local governments, with New York State receiving $12.6 billion in aid to help offset devastating revenue losses caused entirely by the pandemic. With this Federal funding and additional revenues, including $3.5 billion in new tax revenue that rises to $4.3 billion in FY 2023, the Enacted Budget closes the deficit and invests in the ongoing response to the pandemic and recovery efforts.
“New York was ambushed early and hit hardest by COVID, devastating our economy and requiring urgent and unprecedented emergency spending to manage the pandemic,” Governor Cuomo said. “Thanks to the State’s strong fiscal management and relentless pursuit to secure the federal support that the pandemic demanded, we not only balanced our budget, we are also making historic investments to reimagine, rebuild and renew New York in the aftermath of the worst health and economic crisis in a century. This budget continues funding for the largest-in-the-nation $311 billion infrastructure plan, establishes a groundbreaking program to provide affordable internet for low-income families and enhances public safety through police reforms, all while continuing to provide relief to New Yorkers and small businesses as we recover from the pandemic. I thank the legislative leaders – Senate Majority Leader Stewart-Cousins and Assembly Speaker Heastie – for their partnership in helping make this critical budget a reality and delivering results for the people of this state.”
Fiscal Highlights of the FY 2022 Enacted Budget:
State Operating Funds spending is $111 billion
All Funds spending $212 billion for FY 2022
Applies $5.5 billion in federal aid
Provides $29.5 billion in School Aid, a $3 billion, 11% increase.
Provides $7.7 billion in State support for higher education in New York
$311 Billion Infrastructure Plan: New York’s $311 billion infrastructure plan includes the Governor’s $211 billion 2020-24 plan and his $100 billion 2015-2019 plan. The evolving plan increased by $36 billion in the budget with the inclusion of new, key elements of the Midtown West Redevelopment of New York City beginning with Penn Station, Belmont Station Redevelopment, a $3 billion environmental bond act, transportation programs, and additional supportive, affordable, and public housing support, along with incremental adds to existing capital programs.
First-in-the-Nation Affordable Internet for Low-Income Families: The FY 2022 Enacted Budget includes first-in-the-nation legislation requiring internet service providers to offer an affordable $15 per month high-speed internet plan to qualifying low-income households. The State will also require providers to advertise this plan to ensure programs reach underserved populations across the State. To further bridge the gap, the State has partnered with Schmidt Futures and the Ford Foundation to launch ConnectED NY, an emergency fund to provide approximately 50,000 students in economically disadvantaged school districts with free internet access through June 2022.
Police Reform Plans: The FY 2022 Enacted Budget authorizes the withholding of up to 50 percent of state and federal funds from jurisdictions that fail to produce a police reform plan and comply with the Governor’s Executive Order 203, the New York State Police Reform and Reinvention Collaborative. It also requires the Attorney General to install a monitor until the jurisdiction is compliant, if the Governor directs.
Expand Child Care Availability and Affordability: The FY 2022 Enacted Budget directs $2.3 billion in Federal child care resources to expand the availability, quality and affordability of child care. Increases in child care subsidies will expand access, co-pays would be lowered to not more than 10% of family income above the poverty level and essential workers would receive child care tuition support. Child care providers would receive $1.3 billion in stabilization grants to support expenses, as well as additional funds for cleaning and safety. Further investments would be made to increase capacity in child care “deserts” and help parents find the child care provider that’s right for them.
Enact Employer Child Care Credits: The FY 2022 Enacted Budget enhances the Excelsior Jobs Program and Employer Provided Child Care Credit, providing meaningful incentives to employers to help them provide much needed child care to their employees. The Excelsior Jobs Program is enhanced to allow for an expanded up to five percent Investment Tax Credit component and a credit up to six percent of ongoing net child care expenditures provided by the credit recipient. The Employer Provided Child Care Credit is also enhanced by doubling the current credit percentages to 50 percent of qualified child care expenditures and 20 percent of qualified child care resource and referral expenditures while increasing the per taxpayer cap from $150,000 to $500,000.
$29 Billion in Public and Private Green Economy Investments: Under Governor Cuomo’s leadership, New York will embark on an ambitious Green Energy program that will spur more than $29 billion in public and private investment across the state and create 12,400 megawatts of green energy – enough to power 6 million homes. These investments will not only shift the state to a carbon neutral economy, fulfilling the goals of New York’s Climate Leadership and Community Protection Act, but also spur the COVID economic recovery. The investments include the largest offshore wind program in the nation, plans to make New York a global wind energy manufacturing powerhouse, constructing a green energy transmission superhighway, a public-private partnership to build nearly 100 renewable energy projects and supporting transit agencies’ transition to electric busses.
Provide $2.4 Billion to Protect Renters: The FY 2022 Enacted Budget creates a $2.4 billion Emergency Rental Assistance Program (ERAP) to ensure New Yorkers can make rent and remain stable in their homes. The program will support households in rental arrears that have experienced financial hardship, are at risk of homelessness or housing instability and that earn less than 80 percent of area median income. The program would prioritize those with the lowest incomes, the unemployed and other vulnerable populations. Renters in the program will also be eligible to receive relief for utility arrears. The program is funded by $2.3 billion in Federal resources and $100 million of State resources to supplement the core program and target those facing hardship that may not otherwise be eligible. The program will be structured to enable coordinated efforts between the State and the local governments that opted to receive funds directly – leveraging resources, gaining efficiencies and preventing fraud.
Enhancing Nursing Home Quality of Care: The Enacted Budget includes comprehensive nursing home reform legislation to help ensure facilities are prioritizing patient care over profits. These reforms establish minimum thresholds for nursing home spending of 70 percent of revenues on direct resident care and 40 percent of revenues on resident-facing staffing, capping profits at five percent, and targeting unscrupulous related party transactions. Excess revenues recouped by the State will be deposited into the existing nursing home quality pool for further investments for nursing homes to meet high quality standards. Now, more than ever, it is important that nursing homes are staffed to provide high quality care and safety for their residents. These initiatives will have a positive impact on nursing home residents and staff, delivering the quality of care needed for the most vulnerable New Yorkers in a safe environment.
$1 Billion Small Business and Arts Relief and Recovery Assistance: The FY 2022 Enacted Budget includes a robust $1 Billion small business, arts, entertainment and restaurant relief package to help businesses and other organizations recover from the impacts of the pandemic:
COVID-19 Pandemic Small Business Recovery Grant Program: Provides $800 million in grant fundingfor small businesses including for-profit arts and cultural institutions impacted by the COVID-19 pandemic.
New York Restaurant Resiliency Grant Program: $25 million in grant funding to support restaurants that provide meals to distressed and under-represented communities.
Arts and Cultural Organization Recovery Grant Program: $40 million to provide grants through the New York State Council on the Arts to eligible arts and cultural nonprofit organizations to assist in the recovery from the COVID-19 pandemic.
Restaurant Return-To-Work Tax Credit: Provides up to $35 million in tax credits to support restaurants hard hit by the pandemic through 2021.
New York City Musical and Theatrical Production Tax Credit: Provides up to $100 million in tax credits to jump start the industry and support tourism activity in the City.
Extend and Enhance the Musical and Theatrical Production Credit for Four Years: In order to support musical and theatrical productions that occur in the State but outside of New York City, the Budget extends this credit for four years through 2025 and increases it by $4 million to $8 million.
Continuing Middle Class Tax Cuts: The FY 2022 Enacted Budget continues to lower Personal Income Tax rates for middle-class New Yorkers. In 2021, the fourth year of the multi-year tax cuts enacted in 2016, income tax rates have been lowered from 6.09% to 5.97% for taxpayers filing jointly in the $43,000-$161,550 income bracket, and from 6.41% to 6.33% in the $161,550-$323,200 income bracket. These cuts are expected to save 4.8 million New Yorkers over $2.2 billion this year. When the cuts are fully phased in, middle class taxpayers will have received an income tax rate cut up to 20 percent, amounting to a projected $4.2 billion in annual savings for six million filers by 2025. As the new rates phase in, they will be the State’s lowest middle-class tax rates in more than 70 years.
Enact the Real Property Tax Relief Credit: The Budget provides a personal income tax credit for New York resident homeowners with incomes up to $250,000 if their total property tax exceeds a fixed percentage of their income. This framework will target New York families with the highest property tax to income burden. The calculation of this credit is capped at $350 per STAR-eligible household, while also utilizing a $250 credit minimum to further target homeowners impacted the most by high property taxes. It is expected that claims will average about $340. Qualified homeowners will be able to claim this new Property Tax Relief credit for taxable years 2021, 2022, and 2023.
Striking a Balance on Revenue
The FY 2022 Enacted Budget includes new revenue resources that provide the revenues needed to make the investments that will support New York’s ongoing response to the COVID-19 pandemic and New York’s recovery from it, including:
Hard Won Federal Support: The Budget deploys the first $5.5 billion of the $12.6 billion provided for in the federal American Recuse Plan Act 2021. These funds are integrated throughout the budget in accordance with available federal guidelines. Remaining funds will be used in future budgets over the four years that the funding is available.
Secured Federal Support for Local Governments: The Budget includes appropriation authority for local governments to receive Federal support that Governor Cuomo fought tirelessly for. The historic package of $10.8 billion in Federal aid for local governments is a lifeline to localities, helping to support essential workers and government employees, assist the vaccination efforts, boost local economies and support the network of local government services that New Yorkers depend on.
Personal Income Tax Surcharge: The Enacted Budget implements a surcharge on high earners through Tax Year 2027 that sets a top rate of 10.9% for all filers earning more than $25 million. The surcharge raises $2.8 billion in FY 2022, rising to $3.3 billion in FY 2023.
Corporate Franchise Tax Rates: The Enacted Budget implements a surcharge on corporate tax rate that increases the business income tax rate from 6.5% to 7.25% for three years through tax year 2023 for taxpayers with business income greater than $5 million. It also increases the capital base method of liability estimation to 0.1875% from the 0.025% rate in effect last year. The capital base method increase continue to exempt qualified manufacturers, qualified emerging technology companies, and cooperative housing corporations. These changes raise $750 million in FY 2022 and $1 billion in FY 2023.
Mobile Sports Wagering: The FY 2022 Enacted Budget authorizes mobile sports wagering. Once fully phased in, legalization will provide more than $500 million in much needed revenue for the State to help rebuild from COVID-19 and grow what could be the largest sports wagering market in the U.S. into a profitable industry long-term. Under the legislation, the state will issue a Request for Applications and must select at least two platform providers who must work with a total of at least four operators or skins. Once fully phased in, the program will provide $5 million annually to youth sports, and $6 million to combat problem gambling, doubling the resources currently available. The remainder of this new revenue will be dedicated to education.
$29.5 Billion in School Aid: The FY 2022 Enacted Budget provides $29.5 billion in State funding to school districts for the 2021-22 school year through School Aid, the highest level of State aid ever, supporting the operational costs of school districts that educate 2.5 million students statewide. This investment represents an increase of $3.0 billion (11.3 percent) compared to the 2020-21 school year, including a $1.4 billion (7.6 percent) Foundation Aid increase. Approximately 75 percent of this increase is targeted to high-need school districts
$13 Billion in Federal Aid to Public Schools: The FY 2022 Enacted Budget programs $13 billion of federal Elementary and Secondary School Emergency Relief and Governor’s Emergency Education Relief funds to public schools. This funding, available for use over multiple years, will help schools safely reopen for in-person instruction, address learning loss, and respond to students’ academic, social, and emotional needs due to the disruptions of the COVID-19 pandemic. The Budget allocates $629 million of these funds to school districts as targeted grants to support efforts to address learning loss through activities such as summer enrichment and comprehensive after-school programs. In addition, the Budget uses $105 million of federal funds to expand access to full-day prekindergarten programs for four-year-old children in school districts statewide in the 2021-22 school year.
$500 Million in Emergency Federal Assistance to Nonpublic Schools: The FY 2022 Enacted Budget includes $500 million of federal funding for emergency assistance to nonpublic schools, prioritizing schools that serve high proportions of low-income children and have been most severely impacted by the COVID-19 pandemic. These funds will support pandemic-related costs such as personal protective equipment, educational technology, and redeveloping instructional plans for remote or hybrid learning and to address learning loss.
Authorize Aid for Pandemic-Related School District Transportation Costs: Under the FY 2022 Enacted Budget, school districts will be reimbursed for the cost of delivering school meals and instructional materials during pandemic-related school closures in spring 2020 and for the costs of keeping transportation employees and contractors on standby during the initial short-term closures prior to the announcement in May 2020 that school buildings would be closed for the remainder of the 2019-20 school year
Defeating COVID and Strengthening Health Care Delivery
Telehealth: The COVID-19 pandemic has transformed the healthcare delivery system as methods for accessing care have expanded. Accordingly, the State enacted a comprehensive package of telehealth reforms that will increase access to telehealth services. These include:
In the Enacted Budget, these include: increasing access to services through comprehensive reform by allowing certain unlicensed staff (e.g. Credentialed Alcoholism and Substance Abuse Counselors) to deliver substance use disorder services; expanding covered telehealth providers; eliminating obsolete location requirements..
The Reimagine New York Build Back Better initiative will include a $3 million capital grant program matching state and private funding to support telehealth infrastructure needs of rural providers and those serving vulnerable populations
Expanding Nation-Leading COVID-19 Diagnostic Capacity: The FY 2022 Enacted Budget will continue to support the expansion of the State’s world-leading testing program, performing over 200,000 COVID-19 tests daily, on average, to identify disease and mitigate community spread. This includes leveraging the research expertise of Wadsworth laboratories, which was the first public laboratory in the United States to have a non-Centers for Disease Control COVID-19 test approved by the Food and Drug Administration. The State will also continue to operate a network of 22 regionally located drive-through and walk-in testing locations available to all New Yorkers completely free of charge, and will establish a network of rapid testing locations by partnering with testing companies to allow business and entertainment centers to safely re-open.
Strengthening Public Outreach for Communities Disproportionately Affected by the COVID-19 Pandemic: The FY 2022 Enacted Budget includes $15 million to strengthen communication, expand public education and enhance ongoing outreach efforts for communities that have been disproportionately affected by the COVID-19 pandemic. A portion of these funds will be awarded directly to community-based organizations across the state to increase COVID-19 awareness and promote vaccine confidence in the Latino community. Remaining funds will be used for the development of a vaccine awareness media campaign and enhancements to the COVID-19 hotline, which has served as an important source of information to the public with questions or concerns regarding the COVID-19 pandemic.
Launch a New York State Infectious Diseases Resiliency Commercialization Fund: As part of Governor Cuomo’s Life Science Initiative, Empire State Development will create a new $40 million New York State Infectious Diseases Resiliency Commercialization Fund led by Empire State Development and advised by the New York State Department of Health and other private experts to capitalize on New York’s substantial research and development assets and expertise in life sciences, biotechnology and biodefense. The fund will focus on accelerating the growth of companies to fast track the development of innovations that address emerging infectious diseases, public health threats and support economic growth.
Continue COVID Response and Implementation of Vaccine Distribution: The FY 2022 Enacted Budget will support the implementation of a statewide COVID-19 vaccination program that will be available to all New Yorkers within the year, ensuring a fair and equitable distribution to vulnerable and underserved communities within all regions of the state. The vaccine program will cover nearly 20 million residents at no cost, driving New York towards becoming the nation’s first COVID-safe state and accelerating the State’s re-opening effort.
Create the New York Public Health Corps: The FY 2022 Enacted Budget supports the New York Public Health Corps, which will assist in supporting COVID-19 vaccination and pandemic response operations and establishing a best-in-the-nation emergency response public health capacity that lasts beyond the COVID-19 pandemic. Fellows selected for the New York Public Health Corps will include students in undergraduate and graduate public health programs, nursing schools and medical and pharmaceutical schools, recent graduates, retired medical professionals, volunteer first responders and other New Yorkers who will receive an intensive public health training curriculum developed by Cornell University. After the COVID vaccination program is completed, New York will leverage this Public Health Corps model workforce by continuing to recruit and train public health professionals to be available and prepared to serve the State in any future public health crisis.
Eliminate Health Care Premiums: The Enacted Budget eliminates premiums for Essential Plan coverage for more than 400,000 New Yorkers earning between $39,300 and $52,400 for a family of four and expands coverage to include dental and vision by eliminating dental and vision premiums and cost-sharing for Essential Plan 1 and Plan 2 members currently paying out-of-pocket.
Enhancing Social Service Crisis Intervention: The FY 2022 Enacted Budget includes $10 million to support of social service crisis intervention programs and providers disproportionately affected by the COVID-19 Pandemic. These funds will provide much needed financial relief to social service crisis intervention providers who have continued to maintain a quality of care despite the financial burden imposed by the COVID-19 pandemic.
Improving Data Collection Efforts for the Public Health Needs of Asian and Pacific Islander Americans: The FY 2022 Enacted Budget provides support to organizations with the capability of collecting health care related demographic information, specifically for New York State’s Asian and Pacific Islander American populations. The information collected as part of this Data Disaggregation program will be used to identify the specific health care needs of the Asian and Pacific Islander American populations and address shortfalls in the State’s healthcare system in effectively serving these portions of the population.
Enhancing Access to Health Care Services for Holocaust Survivors: The FY 2022 Enacted Budget provides $1 million in additional support for the Holocaust Survivors Initiative. These funds will be used to increase access to health care related case management services for those who suffered in the Holocaust. Case Management services include, but are not limited to, mental health services, trauma informed care, crisis prevention, legal services and entitlement counseling, emergency financial assistance for food, housing, prescriptions, medical and dental care, socialization programs, training and support for caregivers and home health aides working with survivors and end of life care including hospice and ethical wills.
Establish Urgent Care Centers for mental health and addiction services: The Budget authorizes the launch of Urgent Care Centers for mental health and addiction services. On average, more than 100,000 individuals per year benefit from crisis intervention services. These centers will be open 24/7/365 and accept all admissions without referral, including direct drop-offs by law enforcement and other first responders. This effort will streamline stabilization and reintegration for individuals in crisis.
Human Services Cost of Living Adjustment (COLA): The FY 2022 Budget includes $46.2 million to provide a 1 percent COLA to not-for-profits licensed, certified, or otherwise authorized by OPWDD, OMH, and OASAS. These additional resources will support the community-based programs that provide essential services and supports to people with developmental disabilities, mental illness and/or substance use disorder. The Budget also provides $5.6 million for a 1 percent COLA increase for other human services agencies, including SOFA, OTDA, and OCFS.
Post-Partum Eligibility: The Enacted Budget extends coverage for pregnant women between 200% and 223% of the Federal Poverty limit from 60 days after pregnancy to one year. Postpartum persons will maintain 60 days of coverage under Medicaid, and on day 61 they will get coverage under a qualified health plan. This will eliminate the benefit cliff for persons with incomes too high to qualify for Essential Plan coverage
Delay Transition of Medicaid Pharmacy Benefit: The FY 2021 Enacted Budget transitioned the Medicaid pharmacy benefit from Managed Care to fee for service to increase transparency, maximize rebates and reduce administrative costs. Savings were reinvested to 340B entities no longer receiving excess reimbursement for 340B drugs under Managed Care. The FY 2022 Enacted Budget delays the transition of the Medicaid pharmacy benefit by two years, until April 1, 2023.
Jumpstarting New York’s Economic Recovery
Educate and Train Workers for In-Demand Jobs: Along with an unprecedented increase in unemployment, the pandemic has caused a massive shift in the type of jobs available and who is looking for work. The FY 2022 Enacted Budget includes several initiatives under which New York’s colleges and universities will help rebuild New York’s economy by educating and training workers for in-demand jobs:
Pathways Pledge: In partnership with Governor Cuomo’s Reimagine New York Commission, New York is launching a Pathways Pledge among New York’s leading employers, both public and private, to create more inclusive workforces and provide more workforce development opportunities.
SUNY’s Free Online Training Center: Governor Cuomo is expanding SUNY’s free Online Training Center so New Yorkers can enroll in additional employment certification programs for quality jobs in high-demand growing industries like health care and advanced manufacturing. The Training Center will give more New Yorkers in every region of the state — from rural communities to urban centers — another opportunity to receive free job training certifications and then automatically be admitted to any one of SUNY’s 30 community colleges for future career advancements.
SUNY Stony Brook Offshore Wind Institute: New York’s accelerated renewable energy development program is creating thousands of well-paying jobs. In order to make sure New Yorkers benefit from these opportunities, the FY 2022 Enacted Budget supports a $20 million investment in a new Offshore Wind Training Institute based at SUNY Stony Brook and Farmingdale State College. In 2021, NYSERDA and SUNY will issue the first solicitations for advanced technology training partners, leveraging our SUNY and CUNY system to train the first phase of an estimated 2,500 workers beginning in summer of 2021.
Priority Access for Nurses in SUNY and CUNY Programs: In 2017, Governor Cuomo signed into law “BSN in 10” to enhance the quality of patient care and elevate the nursing profession. It requires all nurses who complete an Associate Degree in New York State to complete a Baccalaureate of Science Degree in Nursing within 10 years to maintain licensure by the State. Beginning in Fall 2021, SUNY and CUNY will implement priority admission to nursing programs so the 40,000 nurses and nursing candidates in need of completing their baccalaureate credentials can receive a quality and affordable education within the state.
Advance the Economic Recovery through Workforce Development: The FY 2022 Enacted Budget enacts a COVID-19 Recovery Workforce Initiative, which invests $50 million for training in high-growth industries, employer-driven training for low-income workers and funding for small businesses to re-train and hire furloughed, laid-off or new employees. The investments will provide durable skills that lead to high-quality jobs and support the growth of small businesses recovering from COVID-19 impacts.
Support the Unemployed and Protect Workers: Since the beginning of the pandemic, the Department of Labor has paid out more than $75 billion in benefits to over 4 million New Yorkers – more than 30 typical years’ worth of benefits. The Budget supports reforms to the unemployment system, including upgrades to modernize technology, allowing work search activities to be performed via video conference and online, and creating a centralized virtual portal for workers to file wage, discrimination, retaliation, and other workplace violation claims.
Support Excluded Workers: The FY 2022 Enacted Budget creates a $2.1 billion program to provide cash payments to workers who have suffered income loss due to COVID but who are ineligible for Unemployment Insurance or related Federal benefits due to their immigration status or other factors. Such workers must be low-income and provide sufficient documentation to establish work-related eligibility and residency in the state.
Continued Investment in Tourism: The COVID-19 pandemic caused a precipitous drop in travel, hitting New York’s tourism industry particularly hard. As New York State advances its scientific-based reopening efforts, the FY 2022 Budget includes additional funding to attract visitors from around the world and boost the tourism economy. The program includes a ninth round of $15 million in competitive funding through the Market NY initiative to support marketing projects that promote regional attractions.
New Round of Regional Economic Development Councils: The FY 2022 Enacted Budget includes core capital and tax-credit funding that will be combined with a wide range of existing agency programs for REDC awards totaling $750 million and will target assistance to impacted industries and allow for job creation and retention.
Expand Opportunities for New York’s MWBE Program: Governor Cuomo has been a champion of the Minority and Women Owned Business Enterprises. In 2014, he set the utilization goal in State contracting at 30 percent to ensure all New Yorkers have the opportunity to take part in New York State’s growing economy. New York State now has the highest MWBE contract participation in the nation. In fact, state contract spending with MWBE firms has grown from less than $100 million in 2010 to $3.14 billion as MWBE in FY 2020. To build upon this success, the Empire State Development Corporation, in partnership with the Reimagine New York Commission, is launching the “Entrepreneurship Navigator” to provide customized services and streamlined access to start-up programs to help incubate minority and women entrepreneurs in the technology and innovation sector.
New York Works Economic Development Fund: The FY 2022 Enacted Budget includes a sixth round of investment equaling $220 million for the New York Works Economic Development Fund that will provide additional statewide capital grants to support projects that facilitate the creation of new jobs or retain existing jobs, or fund infrastructure investments necessary to attract new businesses or expand existing businesses in support of economic recovery
Downtown Revitalization: The pandemic has kept New Yorkers at home to save lives, disrupting the flow of commerce in the downtown communities across the State. These areas need support now more than ever. To that end, the FY 2022 Enacted Budget provides $100 million for another round of the Downtown Revitalization Initiative, which has beentransforming downtown neighborhoods into vibrant communities where the next generation of New Yorkers will want to live, work and raise families.
Recovery Grants for Nonprofit Arts and Cultural Organizations: The FY 2022 Enacted Budget includes a new $40 million fund that will provide general operating support to assist nonprofit arts and cultural organizations as they recover from the impact of the COVID-19 pandemic. The Budget also includes an additional $20 million for new capital grants to help arts and cultural organizations comply with COVID-19 health regulations, including outdoor performance space projects, flexible seating, HVAC and filtration upgrades. Combining this new funding with the State’s annual $40 million arts grant program, the Enacted Budget will include over $100 million in grants for arts and cultural organizations through the New York State Council on the Arts.
Ensuring Fair and Safe Housing
Affordable and Homeless Housing Capital Plan: The FY 2022 Enacted Budget continues the $20 billion, comprehensive five-year investment to create or preserve over 100,000 units of affordable housing and create 6,000 new units of supportive housing. The State is well on track toward meeting affordable housing goals and has already exceeded the supportive housing. To date, New York has financed the new construction and preservation of more than 66,500 affordable housing units and more than 7,000 units of supportive housing units that provide stability for some of the state’s most vulnerable populations, including veterans, victims of domestic violence, frail or disabled senior citizens, young adults aging out of foster care, and New Yorkers identified as homeless with special needs, conditions or other life challenges. With this success, the Governor has continued the State’s commitment to supportive housing. The goal is now to create 20,000 units over 15 years, and the Budget includes $250 million in additional capital funding to continue making progress in FY 2022.
Support New Homeless Housing: The FY 2022 Enacted Budget continues $128 million for the Homeless Housing and Assistance Program, a level achieved when funding for the program was doubled in FY 2021. This investment will create more housing for individuals and families who are homeless and unable to secure adequate housing without special assistance.
Create Statewide Transitional Rent Supplement Program: The FY 2022 Enacted Budget creates a new $100 million rent supplement program for low-income households who are homeless or facing an imminent loss of housing. Participants will have their rent contribution capped at 30 percent of income. The program will be provided at local district option, and funds will be available to households earning at or below 30 percent of area median income with districts given flexibility to extend supplements to households earning up to 50 percent of area median income.
Public Housing Remediation: The budget includes $325 million in capital appropriation for critical maintenance projects including weatherization, heating needs, elevators, and lead remediation for public housing throughout the State.
Adaptive Reuse Affordable Housing Program: The Budget includes a $100 million capital appropriation to finance the adaptive reuse of commercial and hotel properties located in New York City to create permanent affordable housing.
Transportation and Infrastructure
Transformational Midtown West Macro Development:
Empire Station Complex: As part of the Transformational Midtown West Development and with the completion of the Moynihan Train Hall, the State will turn to the existing Penn Station, launching a comprehensive $16 billion project to expand and reconstruct the existing station. The fully renovated Penn Station, including the iconic new Long Island Rail Road entrance on 7th Avenue that opened on December 31, 2020, will comprise a widened and completely reconstructed 33rd Street LIRR concourse and an expanded and completely transformed station. Additionally, at least eight new tracks will be constructed south of the existing Penn Station to add capacity, cut down on delays, and improve operations. This will be a signature transportation project creating nearly 60,000 direct jobs and involving the federal government, Empire State Development, the Metropolitan Transportation Authority, New Jersey Transit and Amtrak. New York State stands ready to work with New Jersey Transit and the Federal government to share in this historic investment for the future of the region.
High Line Extension to Moynihan Station: As part of the Transformational Midtown West Development, the FY 2022 Enacted Budget includes funding to support the Governor’s proposal to extend the High Line in Manhattan to give pedestrians seamless access to the elevated pathway from the recently opened Moynihan Train Hall. As part of a public-private partnership, Brookfield Property Group will partner with Empire State Development, the Port Authority of New York and New Jersey and Friends of the High Line to build an L-shaped connection from the 10th Avenue terminus of the High Line to Brookfield’s Manhattan West public space.
Record DOT Capital Plan: The FY 2022 Enacted Budget provides $6.2 billion for the second year of a record $12.3 billion, 2-Year DOT Capital Plan that will facilitate the improvement of highways, bridges, rail, aviation infrastructure, non-MTA transit and DOT facilities. Compared to the final two years of the last DOT Capital Plan, this is an increase of $3.4 billion, or 38 percent.
$1 Billion for Strengthening Local Highways and Bridges: The FY 2022 Enacted Budget builds upon Governor Cuomo’s record commitment to funding local highway and bridge projects. Funding for the Consolidated Highway Improvement Program (CHIPS) and the Marchiselli program increases by $100 million to $577.8 million and funding for Extreme Winter Recovery is $100 million. The Enacted Budget also provides $100 million of new funding to localities responsible for State Touring Routes, increases highway aid through the PAVE NY program by $50 million to $150 million, and maintains funding of local bridge projects through the BRIDGE NY program at $100 million. This represents an overall year-to-year increase of $285 million and brings funding for local highway and bridge projects to more than $1 billion. These programs will play a vital role in improving conditions on State and local roads and bridges and rebuilding New York.
Supporting Parks and DEC Capital Projects: The FY 2022 Enacted Budget allocates $110 million in New York Works capital funding for the Office of Parks, Recreation and Historical Preservation. This funding will aid the ongoing transformation of the State’s flagship parks, and support critical infrastructure projects. The Budget also includes $75 million for the Department of Environmental Conservation to address a variety of capital needs to improve access to State lands, rehabilitate campgrounds.
Clean Water Infrastructure Investment: The FY 2022 Enacted Budget adds a $500 million appropriation to support clean water, raising the State’s total investment to $4 billion and continuing to fulfill the Governor’s $5 billion clean water commitment.
Renew Record Funding for the Environmental Protection Fund: TheFY 2022 Enacted Budget continues EPF funding at $300 million, the highest level of funding in the program’s history. Appropriations include $40 million for solid waste programs, $90 million for parks and recreation, $151 million for open space programs and $19 million for the climate change mitigation and adaptation program. This investment will provide funding for critical environmental programs such as land acquisition, farmland protection, invasive species prevention and eradication, enhanced recreational access, water quality improvement and an aggressive environmental justice agenda.
Restore Mother Nature Bond Act: The FY 2022 Enacted Budget authorizes the Governor’s $3 billion Restore Mother Nature Bond Act. If approved by voters in the November 2022 general election, this historic environmental initiative will make significant investments across the state to combat climate change, reduce flood risk, invest in resilient infrastructure and revitalize critical fish and wildlife habitats. It will do this by connecting streams and waterways, right-sizing culverts and dams, restoring freshwater and tidal wetlands, reclaiming natural floodplains, restocking shellfish populations and upgrading fish hatcheries, preserving open space, conserving more forest areas, replanting more trees, reducing contamination from agricultural and storm water runoff and expanding renewable energy.
Olympic Regional Development Authority Capital Improvements: The FY 2022 Enacted Budget includes $105 million in new capital funding for Olympic Regional Development Authority, including $92.5 million for a strategic upgrade and modernization plan to support improvements to the Olympic facilities and ski resorts with a focus on preparing for the 2023 World University Games, $10 million for critical maintenance and energy efficiency upgrades and $2.5 million appropriated from the Office of Parks, Recreation and Historic Preservation budget as part of the New York Works initiative.
Making New York a Leader in the Green Energy Economy
Largest Offshore Wind Program in the Nation: The state will contract with Equinor Wind US LLC for the development of two new offshore wind farms more than 20 miles off the shore of Long Island, in what is the largest procurement of renewable energy by a state in U.S. history. Upon completion, the two offshore wind farms will yield a combined 2,490 megawatts of carbon-free energy, spurring another $8.9 billion in investment.
Global Wind Energy Manufacturing Powerhouse: New York has secured commitments from companies to manufacture wind turbine components within the state and build the nation’s largest offshore wind program. Plans to make New York State a global wind energy manufacturing powerhouse include upgrades to create five dedicated port facilities. These projects include: the nation’s first offshore wind tower-manufacturing facility to be built in the Port of Albany; facilities at the South Brooklyn Marine Terminal; greater activity at Port Jefferson and Port of Montauk Harbor in Long Island. Together, the projects will leverage almost $3 of private funding for every $1 of public funding, for a combined $644 million investment in these port facilities.
Construct New York’s Green Energy Transmission Superhighway: New York State will construct a new green energy superhighway of 250 miles. The $2 billion project will create opportunities to maximize the use of renewable energy for the parts of the state that still rely on polluting fossil-fuel plants. Construction has already started on the New York Power Authority’s 86-mile Smart Path project from Massena to Croghan and key projects in Western New York, Mid-Hudson and the Capital Region.
Public-Private Partnership to Build Nearly 100 Renewable Energy Projects: New York will contract for another 24 large-scale renewable energy generation projects in 2021, to bring the State’s total clean energy build-out to nearly 100 projects. The 23 solar farms and one hydroelectric facility will be the most cost-efficient clean energy construction to date in New York, producing more than 2,200 megawatts of clean power, generating more than $2.9 billion of investment and creating 3,400 jobs in 16 counties Upstate.
Support Electric Buses: The FY 2022 Enacted Budget provides non-MTA transit systems with another $20 million of capital aid, for the second installment of a $100 million five-year program to support transit agencies’ transition to electric buses. Under this program, five of the largest upstate and suburban transit authorities will electrify 25 percent of their fleets by 2025 and 100 percent by 2035.
Addressing Systemic Injustices
Strengthen Policing Profession: The FY 2022 Enacted Budget strengthens hiring and background investigation standards for police officers through the establishment of a certification process. All police departments will be required to certify their compliance with minimum hiring and background investigation standards. This legislation prevents officers who commit serious or criminal misconduct from serving as officers in another police department.
Securing Communities Against Hate Crimes (SCAHC): The FY 2022 Enacted Budget adds $25 million to the Securing Communities Against Hate Crimes grant program. This program boosts safety and security at New York’s nonpublic schools, community centers and day care facilities at risk of hate crimes or attacks because of their ideology, beliefs or mission. This new funding may also be used to safeguard against cyber related hate crimes or attacks.
Liberty Defense Fund: The FY 2022 Enacted Budget authorizes $10 million for the Liberty Defense Fundto provide free legal consultations and screenings to help undocumented New Yorkers.
Support Raise the Age Implementation: The FY 2022 Enacted Budget includes a $250 million appropriation to support continued implementation of the Raise the Age initiative.
Elections Infrastructure and Voting Reforms: The Enacted Budget includes $25 million in capital funding to modernize and secure State and local voting infrastructure. The Budget also provides $2 million in local funding and $1 million in State Board of Elections funding to support the implementation and oversight of voting reforms, including early voting.
Tackling Food Insecurities: The FY 2022 Enacted Budget adds $50 million to Nourish New York for a total $85 million investment to extend the program through 2021. This critical program helps people who are food insecure access the nourishment that they need, leveraging the vast agricultural industry of New York State to connect food banks and providers to purchase locally grown and produced food.
Over $7.7 Billion for Higher Education: The Enacted Budget provides over $7.7 billion in State support for higher education in New York, an increase of $283 million, or 3.8 percent, from FY 2021. New York has increased funding for higher education by more than $1.7 billion, or 29 percent, since FY 2012. In addition, the Enacted Budget provides over $1 billion in new capital funding to SUNY and CUNY.
Use Federal Stimulus Aid to Support Our Neediest Students: New York’s colleges and universities are expected to receive an estimated $5.4 billion in direct Federal stimulus aid, including over $3.4 billion for public colleges and close to $2 billion for private colleges. SUNY and CUNY have almost $3 billion in remaining stimulus funds to spend over the next 2-3 years. A substantial portion of this funding will be used to provide financial aid grants to students with exceptional need, such as students who receive Pell grants.
Provide Record Support for Higher Education Opportunity Programs: The Enacted Budget includes a historic $247 million in State funding to provide academic and financial support to economically and educationally disadvantaged students through opportunity programs and training centers. The Budget adds $30 million for a 20 percent increase in funding for higher education opportunity programs and $4 million in additional aid for Education Opportunity Centers. Since 2012, funding for these programs has increased by $112 million or 83 percent.
Increase Maximum TAP Award by $500: The Enacted Budget includes $88 million to raise the maximum TAP award from $5,165 to $5,665, increasing TAP awards for approximately 185,000 New York residents attending public and private colleges in New York.
Enact a TAP Gap Funding Plan: The Enacted Budget includes a four-year plan to fund the gap in financial aid between TAP and tuition that is covered by SUNY and CUNY tuition credits. The plan gradually increases State support to fully cover an estimated $158 million in annual TAP tuition credits by the 2024-25 academic year.
Increase Aid to Community Colleges by $50 Per Student with a Funding Floor: The Enacted Budget increases community college formula aid from $2,947 per student to $3,197 per student and includes a funding floor at 98 percent of prior year formula aid. These changes will provide an additional $25 million in State support to over 200,000 community college students in the 2021-22 academic year.