In a nutshell, President Joe Biden’s “Build Back Better” agenda comes down to this: seizing this rare opportunity to grow the economy in such a way so that all benefit, or continuing a system that benefits a small slice of society while holding back the rest, states a “memo” from White House Senior Staff to “Interested Parties”. Re: “The Generational Choices in Front of Us to Grow the Economy for All”
Memo: The Generational Choices in Front of Us to Grow the Economy for All To: Interested Parties From: White House Senior Staff
America is at a crossroads right now: whether to create sustained economic growth that benefits everybody by addressing the challenges that have held back working families for decades, or maintain the status quo of a failed strategy to invest government resources in tax cuts for large corporations and the wealthy.
The choice in front of us is simple. We can pass a plan that 17 Nobel Prize winning economists last week said would boost our economy and ease long-term inflationary pressures. We can pass a plan that last week the Economic Policy Institute said would support 4 million jobs per year over the decade. Or we can prioritize the interests of the wealthiest Americans and most profitable corporations over building an economy that works for everyone.
These are the choices in front of us:
1. We can continue to give the wealthiest 0.1% of households – those making $2 million a year – an annual tax cut of $36,000… …OR we can dramatically reduce child poverty by providing a tax cut to nearly 40 million households and the parents of 90% of American children through a historic expansion of the Child Tax Credit.
Economic impact: Last week, 450 economists, including four Nobel Prize winners, highlighted in an open letter the clear evidence of the economic benefits of the CTC – including higher long-term earnings for children in families receiving credit. This led the economists to conclude that “the net cost to taxpayers of the expansion has been estimated to be as little as approximately 16 cents for every $1 of new benefits.”
2. We can let pharmaceutical companies continue to raise prices on drugs that we depend on and allow nearly 1 in 4 Americans to struggle to afford prescription drugs… …OR we can lower drug costs by allowing Medicare to negotiate prescription drug prices, expand health care coverage to 4 million uninsured people, and reduce health insurance premiums – saving 9 million people an average of $50 per month.
Economic impact: Reducing drug and healthcare would mean putting more money in Americans’ pockets that they can use to drive demand for U.S. goods and services. And, studies show that making health care more affordable enables more Americans to work, boosting employment and expanding the labor market.
3. We can let the wealthiest 1% of Americans evade $160 billion per year in taxes… … OR we can enforce our existing tax laws and invest that money to make universal preschool a reality – benefiting more than 5 million families and bringing down the crushing costs of child care for middle class families, which will help the average family save $13,000 per year.
Economic impact: Investing in universal preschool would help grow our economy for generations to come: research shows that every dollar invested in high-quality early childhood programs for low-income children yields more than $7 in benefits. The Economic Policy Institute study released last week projected that the President’s plan would support 1.1 million caregiving jobs per year this decade.
4. We can continue to allow large, profitable corporations to take advantage of tax loopholes… … ORwe can require big corporations to finally pay their fair share and use that money to invest in small businesses – the engine of our economy in communities throughout the country.
Economic impact: Supporting small businesses would help grow our economy in a way that benefits everyone: small businesses account for 44% of U.S. GDP, create two-thirds of net new jobs, and employ nearly half of America’s workers.
5. We can continue to let 55 Fortune 500 companies pay $0 in taxes on more than $40 billion in profits per year… …OR we can eliminate loopholes like the ones that allow companies to shift jobs and profits overseas and use that money to address the threat of climate change and make critical investments so that our communities are more resilient against extreme weather events. These companies have said we need to take on the existential threat of climate change; now they face a real choice – pay a little more or continue to allow extreme weather events to devastate communities around the country.
Economic impact: Last year alone, the United States faced 22 extreme weather and climate-related disaster events with losses exceeding $1 billion each – a cumulative price tag of nearly $100 billion. The climate investments in the Build Back Better plan would support more than 750,000 green jobs per year over the coming decade, and prevent economic shocks brought on from extreme weather events.
6. We can allow the middle class to be taxed more for their work than the richest are taxed on their investment income… …OR we can ask the top 0.3% to pay a higher tax rate on their investment income and use that money to drive down housing costs for the 10.5 million renters paying more than half of their incomes on rent and boost housing supply with the construction or rehabilitation of more than two million homes.
7. We can keep the corporate tax rate for the top 1% most profitable corporations at the lowest rate it has been since World War II… …OR we can make a modest increase to the corporate tax rate and use that money to reduce the crushing cost of child and elder care for middle class families. The President’s child care proposal would provide high-quality child care for children up to age 5, saving the average family $14,800 per year.
Economic impact: Investments in child care improve worker productivity, workforce participation, family incomes, and business revenue. One study found a $57 billion annual cost to the economy due to child-care related lost earnings and productivity.
8. We can accept a tax system where a teacher pays a higher tax rate than a hedge fund manager… …OR we can restore fairness in our tax code and expand paid family and medical leave to the nearly four in five private sector workers and 95% of lowest wage workers who currently lack it – so that millions of Americans no longer have to decide between keeping their jobs or caring for loved ones and their personal health.
Economic impact: Comprehensive paid and medical leave policies would increase labor force participation and lead to better outcomes for workers and businesses. The adoption of a paid leave program is associated with a 4.6% increase in revenue per full-time employee and 6.8% increase in profit per full-time employee.
The President believes that these choices are easy. He chooses leveling the playing field to ensure the wealthiest individuals and most profitable corporations pay their fair share and working-class families get a fighting chance to succeed and prosper. He chooses tackling the existential threats facing our country and making investments to position our nation for success for generations to come. These are the choices we face now.
By Karen Rubin, News & Photo Features, news-photos-features.com
President Joe Biden will use his first speech to the United Nations General Assembly to rally allies, partners and institutions to deal with the major challenges of our time: “COVID-19; climate change; emerging technologies; rules of the road on trade and economics; investments in clean infrastructure; a modern approach to counterterrorism; and vigorous competition with great powers, but not a new Cold War,” said a senior administration official during a press call to preview the President’s speech.
“The speech will drive home the message that ending the war in Afghanistan closed a chapter focused on war and opens a chapter focused on purposeful, effective, intensive American diplomacy defined by working with allies and partners to solve problems that can’t be solved by military force and that require the cooperation of many nations around the world as well as nonstate actors from the private sector and nongovernmental organizations and international institutions,” he said.
These big, hard challenges “will define the scope and shape of prosperity and security for the people of the United States and for people of the world in the years ahead.”
The President “will reinforce the notion that our futures and our fortunes are really interconnected and bound up with one another. And so, we all have to work together to cooperate in service of solving problems and seizing opportunities that lie before us.”
After arriving at Kennedy International Airport, President Biden was to have his first extended one-on-one meeting with the Secretary-General of the United Nations, António Guterres, to discuss issues including Afghanistan and Yemen, as well as big global challenges like COVID-19 and climate change.
At the end of the week, the President will host the first-ever in-person Quad Summit, “a gathering of likeminded, democratic partners to tackle these big challenges — COVID, climate, economic investment, technology.”
He will hold bilateral meetings with Prime Minister Scott Morrison of Australia in New York on Tuesday, followed by a meeting with Prime Minister Boris Johnson of the United Kingdom in the evening in Washington; Prime Minister Narendra Modi of India on Friday, as well as an engagement with Prime Minister Yoshihide Suga of Japan on Friday in Washington.
On Wednesday, President Biden will host a summit on COVID-19 “to rally the world urgently to work towards ending this pandemic as rapidly as possible and building our systems better to be able to handle the next pandemic.
“He believes that it is high time for the world to come together — and not just national leaders, but he’s placing a heavy emphasis on international institutions, the private sector, nongovernmental organizations — all of the actors who collectively have the capacity to beat COVID-19. And he is going to call for an all-hands-on-deck effort that can end this pandemic much more rapidly than if we allow for things to unfold without the kind of focused, sustained energy and effort that is required,” the official said.
The summit will involve setting bold goals to hit on everything from vaccinations to the supply of lifesaving medications and technologies. And it will also set out a pattern of high-level meetings through the coming months to ensure that we are holding ourselves and the world accountable to following through on achieving these goals.
The United States will also have a series of announcements about further contributions above and beyond what has already been contributed to ending the pandemic globally.
Earlier in the day, the Biden administration announced it was easing up restrictions on foreign travel into the United States, by opening access to foreign nationals who have been vaccinated and have had a negative COVID-19 test within three days of travel. In addition, airlines will be required to keep information for contact tracing, should that be necessary. The new, strict protocols will be in place by early November.
“Critically for our European partners and for the UK, this policy means that we will no longer be implementing the current 212(f) travel policies for individual countries as of early November. We’ll be moving to a consistent requirement for all international air travelers coming to the United States.
“But we’re very proud of the fact that we’ve been able to develop a protocol that will permit travel by individuals and families and business people from the E.U. and the UK, as well as from Brazil and India and other countries, to the United States with proof of vaccination.”
Responding to a question about the controversy over the United States selling nuclear submarines to Australia – which angered France –and whether this would be a new precedent for the United States to sell nuclear technology, the official said, “This is a unique set of circumstances involving a unique actor — Australia – which is a model nonproliferation citizen in the world, has incredibly high standards, has a history of proving out its commitment to the Nuclear Non-Proliferation Treaty. It has proven that not just by word but by deed, decade after decade.
“And so, President Biden felt that with the unique case of Australia and then a unique set of safeguards for this material — the highest possible standards of safeguarding the HEU, stewardship of the HEU, consistent with the International Atomic Energy Agency, with the Nuclear Non-Proliferation Treaty, in consultation with the relevant international bodies — that we will be able to show that this is not a broad precedent that opens the doors but rather a very narrow-use case involving the combination of a unique set of circumstances.”
There is no plan to sell such technology to South Korea or any others.
With respect to President Macron, he said, President Biden plans to discuss the way forward, and reinforce his deep commitment to the U.S. alliance with France – “an alliance that has fostered security, stability, and prosperity around the world for decades. The President wants to communicate his desire to work closely with France in the Indo-Pacific and globally, and to talk about specific practical measures that we can undertake together.
“We understand the French position. We don’t share their view, in terms of how this all developed, but we understand their position. And we will continue to be engaged in the coming days on this. And we look forward to the phone call between President Biden and President Macron once its time is fixed on the books. We think that will be an important moment and opportunity for the two leaders to speak directly with one another.”
He countered an assertion that the Afghanistan evacuation and the unilateral decision with Australia warrant criticism that the U.S. is not engaging with its partners and that it’s moving on its own.
“If you look at the most significant challenges, the highest-priority issues facing the world today, you see the United States has been deeply engaged with allies and partners and with the relevant international institutions.
“The President is hosting a summit on COVID-19 on Wednesday where allies, partners, and even competitors have been invited to talk about how we find a collective way forward.
“The United States and the European Union are holding a ministerial-level meeting of the Trade and Technology Council on September 29th. This will be an opportunity to talk about how we shape a common way forward on our economy and on emerging technologies, and it’s an unprecedented vehicle to be able to do that.
“So, when you walk through those significant issues — the depth and richness of the engagement with our allies and partners, the work that we have done with the European Union, the work we have done with Asian allies and partners, the deepening of the Quad as a vital part of the institutional framework of Asia — I think the picture is actually quite positive, despite the differences in perspective on Afghanistan and the issues we are dealing with France right now.”
He said that the US and France can find a productive pathway forward, working together on critical security issues.
“So, if you look at the totality of the Biden foreign policy — of the ways in which we have worked on the big issues and done so very much in coordination, consultation, and common action with allies and partners, and then you look at the months ahead and what’s on the docket and the trajectory that we’re setting for ourselves — the President feels very good about the path forward and about how American foreign policy can play a vital role in rallying the world and especially rallying like-minded democracies to solve the great challenges of our time.”
Hosting the leaders of the Quad fundamentally is a demonstration of the priority Biden’s foreign policy is placing of engaging in the Indo-Pacific, including through new multilateral configurations designed to focus on 21st century challenges, including the COVID-19 pandemic, the climate crisis and clean-energy, partnering on emerging technologies in cyberspace, promoting high-standards infrastructure, and an overarching commitment at the core of the Quad to promoting a free and open Indo-Pacific.
President Joe Biden, declaring that America has lost patience with the 25 percent of Americans – 80 million – who refuse to get vaccinated against COVID-19 in face of a surging Delta variant, put away the carrot and took out the stick, issuing new executive orders that will mandate vaccinations for all federal workers and workers for federal contractors, personnel in hospitals and medical facilities that take Medicare or Medicaid, and requiring corporations with over 100 workers to mandate vaccinations or weekly testing – orders that will cover about two-thirds of all American workers.
“What makes it incredibly more frustrating is that we have the tools to combat COVID-19, and a distinct minority of Americans –supported by a distinct minority of elected officials — are keeping us from turning the corner. These pandemic politics, as I refer to, are making people sick, causing unvaccinated people to die.
“We cannot allow these actions to stand in the way of protecting the large majority of Americans who have done their part and want to get back to life as normal…
“My plan also increases testing, protects our economy, and will make our kids safer in schools. It consists of six broad areas of action and many specific measures in each that — and each of those actions that you can read more about at WhiteHouse.gov.”
Key to the plan is the mandate vaccinations in various instances
“This is not about freedom or personal choice. It’s about protecting yourself and those around you — the people you work with, the people you care about, the people you love.
“My job as President is to protect all Americans.”
To the unvaccinated, the President said, “We’ve been patient, but our patience is wearing thin. And your refusal has cost all of us. So, please, do the right thing. But just don’t take it from me; listen to the voices of unvaccinated Americans who are lying in hospital beds, taking their final breaths, saying, “If only I had gotten vaccinated.” “If only.”
Here’s a highlighted transcript of his speech on September 9, 2021:
THE PRESIDENT: Good evening, my fellow Americans. I want to talk to you about where we are in the battle against COVID-19, the progress we’ve made, and the work we have left to do.
And it starts with understanding this: Even as the Delta variant COVID-19 has been hitting this country hard, we have the tools to combat the virus, if we can come together as a country and use those tools.
If we raise our vaccination rate, protect ourselves and others with masking and expanded testing, and identify people who are infected, we can and we will turn the tide on COVID-19.
It will take a lot of hard work, and it’s going to take some time. Many of us are frustrated with the nearly 80 million Americans who are still not vaccinated, even though the vaccine is safe, effective, and free.
You might be confused about what is true and what is false about COVID-19. So before I outline the new steps to fight COVID-19 that I’m going to be announcing tonight, let me give you some clear information about where we stand.
First, we have made considerable progress in battling COVID-19. When I became President, about 2 million Americans were fully vaccinated. Today, over 175 million Americans have that protection.
Before I took office, we hadn’t ordered enough vaccine for every American. Just weeks in office, we did. The week before I took office, on January 20th of this year, over 25,000 Americans died that week from COVID-19. Last week, that grim weekly toll was down 70 percent.
And in the three months before I took office, our economy was faltering, creating just 50,000 jobs a month. We’re now averaging 700,000 new jobs a month in the past three months.
This progress is real. But while America is in much better shape than it was seven months ago when I took office, I need to tell you a second fact.
We’re in a tough stretch, and it could last for a while. The highly contagious Delta variant that I began to warn America about back in July spread in late summer like it did in other countries before us.
While the vaccines provide strong protections for the vaccinated, we read about, we hear about, and we see the stories of hospitalized people, people on their death beds, among the unvaccinated over these past few weeks.
This is a pandemic of the unvaccinated. And it’s caused by the fact that despite America having an unprecedented and successful vaccination program, despite the fact that for almost five months free vaccines have been available in 80,000 different locations, we still have nearly 80 million Americans who have failed to get the shot.
And to make matters worse, there are elected officials actively working to undermine the fight against COVID-19. Instead of encouraging people to get vaccinated and mask up, they’re ordering mobile morgues for the unvaccinated dying from COVID in their communities. This is totally unacceptable.
Third, if you wonder how all this adds up, here’s the math: The vast majority of Americans are doing the right thing. Nearly three quarters of the eligible have gotten at least one shot, but one quarter has not gotten any. That’s nearly 80 million Americans not vaccinated. And in a country as large as ours, that’s 25 percent minority. That 25 percent can cause a lot of damage — and they are.
The unvaccinated overcrowd our hospitals, are overrunning the emergency rooms and intensive care units, leaving no room for someone with a heart attack, or [pancreatitis], or cancer.
And fourth, I want to emphasize that the vaccines provide very strong protection from severe illness from COVID-19. I know there’s a lot of confusion and misinformation. But the world’s leading scientists confirm that if you are fully vaccinated, your risk of severe illness from COVID-19 is very low.
In fact, based on available data from the summer, only one of out of every 160,000 fully vaccinated Americans was hospitalized for COVID per day.
These are the facts.
So here’s where we stand: The path ahead, even with the Delta variant, is not nearly as bad as last winter. But what makes it incredibly more frustrating is that we have the tools to combat COVID-19, and a distinct minority of Americans –supported by a distinct minority of elected officials — are keeping us from turning the corner. These pandemic politics, as I refer to, are making people sick, causing unvaccinated people to die.
We cannot allow these actions to stand in the way of protecting the large majority of Americans who have done their part and want to get back to life as normal.
As your President, I’m announcing tonight a new plan to require more Americans to be vaccinated, to combat those blocking public health.
My plan also increases testing, protects our economy, and will make our kids safer in schools. It consists of six broad areas of action and many specific measures in each that — and each of those actions that you can read more about at WhiteHouse.gov. WhiteHouse.gov.
The measures — these are going to take time to have full impact. But if we implement them, I believe and the scientists indicate, that in the months ahead we can reduce the number of unvaccinated Americans, decrease hospitalizations and deaths, and allow our children to go to school safely and keep our economy strong by keeping businesses open.
First, we must increase vaccinations among the unvaccinated with new vaccination requirements. Of the nearly 80 million eligible Americans who have not gotten vaccinated, many said they were waiting for approval from the Food and Drug Administration — the FDA. Well, last month, the FDA granted that approval.
So, the time for waiting is over. This summer, we made progress through the combination of vaccine requirements and incentives, as well as the FDA approval. Four million more people got their first shot in August than they did in July.
But we need to do more. This is not about freedom or personal choice. It’s about protecting yourself and those around you — the people you work with, the people you care about, the people you love.
My job as President is to protect all Americans.
So, tonight, I’m announcing that the Department of Labor is developing an emergency rule to require all employers with 100 or more employees, that together employ over 80 million workers, to ensure their workforces are fully vaccinated or show a negative test at least once a week.
Some of the biggest companies are already requiring this: United Airlines, Disney, Tysons Food, and even Fox News.
The bottom line: We’re going to protect vaccinated workers from unvaccinated co-workers. We’re going to reduce the spread of COVID-19 by increasing the share of the workforce that is vaccinated in businesses all across America.
My plan will extend the vaccination requirements that I previously issued in the healthcare field. Already, I’ve announced, we’ll be requiring vaccinations that all nursing home workerswho treat patients on Medicare and Medicaid, because I have that federal authority.
Tonight, I’m using that same authority to expand that to cover those who work in hospitals, home healthcare facilities, or other medical facilities –- a total of 17 million healthcare workers.
If you’re seeking care at a health facility, you should be able to know that the people treating you are vaccinated. Simple. Straightforward. Period.
Next, I will sign an executive order that will now require all executive branch federal employees to be vaccinated — all. And I’ve signed another executive order that will require federal contractors to do the same.
If you want to work with the federal government and do business with us, get vaccinated. If you want to do business with the federal government, vaccinate your workforce.
And tonight, I’m removing one of the last remaining obstacles that make it difficult for you to get vaccinated.
The Department of Labor will require employers with 100 or more workers to give those workers paid time off to get vaccinated. No one should lose pay in order to get vaccinated or take a loved one to get vaccinated.
Today, in total, the vaccine requirements in my plan will affect about 100 million Americans –- two thirds of all workers.
And for other sectors, I issue this appeal: To those of you running large entertainment venues — from sports arenas to concert venues to movie theaters — please require folks to get vaccinated or show a negative test as a condition of entry.
And to the nation’s family physicians, pediatricians, GPs — general practitioners –- you’re the most trusted medical voice to your patients. You may be the one person who can get someone to change their mind about being vaccinated.
Tonight, I’m asking each of you to reach out to your unvaccinated patients over the next two weeks and make a personal appeal to them to get the shot. America needs your personal involvement in this critical effort.
And my message to unvaccinated Americans is this: What more is there to wait for? What more do you need to see? We’ve made vaccinations free, safe, and convenient.
The vaccine has FDA approval. Over 200 million Americans have gotten at least one shot.
We’ve been patient, but our patience is wearing thin. And your refusal has cost all of us. So, please, do the right thing. But just don’t take it from me; listen to the voices of unvaccinated Americans who are lying in hospital beds, taking their final breaths, saying, “If only I had gotten vaccinated.” “If only.”
It’s a tragedy. Please don’t let it become yours.
The second piece of my plan is continuing to protect the vaccinated.
For the vast majority of you who have gotten vaccinated, I understand your anger at those who haven’t gotten vaccinated. I understand the anxiety about getting a “breakthrough” case.
But as the science makes clear, if you’re fully vaccinated, you’re highly protected from severe illness, even if you get COVID-19.
In fact, recent data indicates there is only one confirmed positive case per 5,000 fully vaccinated Americans per day.
You’re as safe as possible, and we’re doing everything we can to keep it that way — keep it that way, keep you safe.
That’s where boosters come in — the shots that give you even more protection than after your second shot.
Now, I know there’s been some confusion about boosters. So, let me be clear: Last month, our top government doctors announced an initial plan for booster shots for vaccinated Americans. They believe that a booster is likely to provide the highest level of protection yet.
Of course, the decision of which booster shots to give, when to start them, and who will give them, will be left completely to the scientists at the FDA and the Centers for Disease Control.
But while we wait, we’ve done our part. We’ve bought enough boosters — enough booster shots — and the distribution system is ready to administer them.
As soon as they are authorized, those eligible will be able to get a booster right away in tens of thousands of sites across the country for most Americans, at your nearby drug store, and for free.
The third piece of my plan is keeping — and maybe the most important — is keeping our children safe and our schools open. For any parent, it doesn’t matter how low the risk of any illness or accident is when it comes to your child or grandchild. Trust me, I know.
So, let me speak to you directly. Let me speak to you directly to help ease some of your worries.
It comes down to two separate categories: children ages 12 and older who are eligible for a vaccine now, and children ages 11 and under who are not are yet eligible.
The safest thing for your child 12 and older is to get them vaccinated.They get vaccinated for a lot of things. That’s it. Get them vaccinated.
As with adults, almost all the serious COVID-19 cases we’re seeing among adolescents are in unvaccinated 12- to 17-year-olds — an age group that lags behind in vaccination rates.
So, parents, please get your teenager vaccinated.
What about children under the age of 12 who can’t get vaccinated yet? Well, the best way for a parent to protect their child under the age of 12 starts at home. Every parent, every teen sibling, every caregiver around them should be vaccinated.
Children have four times higher chance of getting hospitalized if they live in a state with low vaccination rates rather than the states with high vaccination rates.
Now, if you’re a parent of a young child, you’re wondering when will the vaccine be available for them. I strongly support an independent scientific review for vaccine uses for children under 12. We can’t take shortcuts with that scientific work.
But I’ve made it clear I will do everything within my power to support the FDA with any resource it needs to continue to do this as safely and as quickly as possible, and our nation’s top doctors are committed to keeping the public at large updated on the process so parents can plan.
Now to the schools. We know that if schools follow the science and implement the safety measures —like testing, masking, adequate ventilation systems that we provided the money for, social distancing, and vaccinations — then children can be safe from COVID-19 in schools.
Today, about 90 percent of school staff and teachers are vaccinated. We should get that to 100 percent. My administration has already required teachers at the schools run by the Defense Department — because I have the authority as President in the federal system — the Defense Department and the Interior Department — to get vaccinated. That’s authority I possess.
Tonight, I’m announcing that we’ll require all of nearly 300,000 educators in the federal paid program, Head Start program, must be vaccinated as well to protect your youngest –– our youngest — most precious Americans and give parents the comfort.
And tonight, I’m calling on all governors to require vaccination for all teachers and staff. Some already have done so, but we need more to step up.
Vaccination requirements in schools are nothing new. They work. They’re overwhelmingly supported by educators and their unions. And to all school officials trying to do the right thing by our children: I’ll always be on your side.
Let me be blunt. My plan also takes on elected officials and states that are undermining you and these lifesaving actions. Right now, local school officials are trying to keep children safe in a pandemic while their governor picks a fight with them and even threatens their salaries or their jobs. Talk about bullying in schools. If they’ll not help — if these governors won’t help us beat the pandemic, I’ll use my power as President to get them out of the way.
The Department of Education has already begun to take legal action against states undermining protection that local school officials have ordered. Any teacher or school official whose pay is withheld for doing the right thing, we will have that pay restored by the federal government 100 percent. I promise you I will have your back.
The fourth piece of my plan is increasing testing and masking. From the start, America has failed to do enough COVID-19 testing. In order to better detect and control the Delta variant, I’m taking steps tonight to make testing more available, more affordable, and more convenient. I’ll use the Defense Production Act to increase production of rapid tests, including those that you can use at home.
While that production is ramping up, my administration has worked with top retailers, like Walmart, Amazon, and Kroger’s, and tonight we’re announcing that, no later than next week, each of these outlets will start to sell at-home rapid test kits at cost for the next three months. This is an immediate price reduction for at-home test kits for up to 35 percent reduction.
We’ll also expand free testing at 10,000 pharmacies around the country. And we’ll commit — we’re committing $2 billion to purchase nearly 300 million rapid tests for distribution to community health centers, food banks, schools, so that every American, no matter their income, can access free and convenient tests. This is important to everyone, particularly for a parent or a child — with a child not old enough to be vaccinated. You’ll be able to test them at home and test those around them.
In addition to testing, we know masking helps stop the spread of COVID-19. That’s why when I came into office, I required masks for all federal buildings and on federal lands, on airlines, and other modes of transportation.
Today — tonight, I’m announcing that the Transportation Safety Administration — the TSA — will double the fines on travelers that refuse to mask. If you break the rules, be prepared to pay.
And, by the way, show some respect.The anger you see on television toward flight attendants and others doing their job is wrong; it’s ugly.
The fifth piece of my plan is protecting our economic recovery.Because of our vaccination program and the American Rescue Plan, which we passed early in my administration, we’ve had record job creation for a new administration, economic growth unmatched in 40 years. We cannot let unvaccinated do this progress — undo it, turn it back.
So tonight, I’m announcing additional steps to strengthen our economic recovery. We’ll be expanding COVID-19 Economic Injury Disaster Loan programs. That’s a program that’s going to allow small businesses to borrow up to $2 million from the current $500,000 to keep going if COVID-19 impacts on their sales.
These low-interest, long-term loans require no repayment for two years and be can used to hire and retain workers, purchase inventory, or even pay down higher cost debt racked up since the pandemic began. I’ll also be taking additional steps to help small businesses stay afloat during the pandemic.
Sixth, we’re going to continue to improve the care of those who do get COVID-19. In early July, I announced the deployment of surge response teams. These are teams comprised of experts from the Department of Health and Human Services, the CDC, the Defense Department, and the Federal Emergency Management Agency — FEMA — to areas in the country that need help to stem the spread of COVID-19.
Since then, the federal government has deployed nearly 1,000 staff, including doctors, nurses, paramedics, into 18 states. Today, I’m announcing that the Defense Department will double the number of military health teams that they’ll deploy to help their fellow Americans in hospitals around the country.
Additionally, we’re increasing the availability of new medicines recommended by real doctors, not conspiracy theorists. The monoclonal antibody treatments have been shown to reduce the risk of hospitalization by up to 70 percent for unvaccinated people at risk of developing sefe- — severe disease.
We’ve already distributed 1.4 million courses of these treatments to save lives and reduce the strain on hospitals. Tonight, I’m announcing we will increase the average pace of shipment across the country of free monoclonal antibody treatments by another 50 percent.
Before I close, let me say this: Communities of color are disproportionately impacted by this virus. And as we continue to battle COVID-19, we will ensure that equity continues to be at the center of our response. We’ll ensure that everyone is reached. My first responsibility as President is to protect the American people and make sure we have enough vaccine for every American, including enough boosters for every American who’s approved to get one.
We also know this virus transcends borders. That’s why, even as we execute this plan at home, we need to continue fighting the virus overseas, continue to be the arsenal of vaccines.
We’re proud to have donated nearly 140 million vaccines over 90 countries, more than all other countries combined, including Europe, China, and Russia combined. That’s American leadership on a global stage, and that’s just the beginning.
We’ve also now started to ship another 500 million COVID vaccines — Pfizer vaccines — purchased to donate to 100 lower-income countries in need of vaccines. And I’ll be announcing additional steps to help the rest of the world later this month.
As I recently released the key parts of my pandemic preparedness plan so that America isn’t caught flat-footed when a new pandemic comes again — and it will — next month, I’m also going to release the plan in greater detail.
So let me close with this: We have made so much progress during the past seven months of this pandemic. The recent increases in vaccinations in August already are having an impact in some states where case counts are dropping in recent days. Even so, we remain at a critical moment, a critical time. We have the tools. Now we just have to finish the job with truth, with science, with confidence, and together as one nation.
Look, we’re the United States of America. There’s nothing — not a single thing — we’re unable to do if we do it together. So let’s stay together.
God bless you all and all those who continue to serve on the frontlines of this pandemic. And may God protect our troops.
On July 28, 2021, President Joe Biden and the bipartisan group announced agreement on the details of a once-in-a-generation investment in our infrastructure, which will be taken up in the Senate for consideration. In total, the deal includes $550 billion in new federal investment in America’s infrastructure, according to a fact sheet from the White House , which details what is included:
The Bipartisan Infrastructure Deal will grow the economy, enhance our competitiveness, create good jobs, and make our economy more sustainable, resilient, and just.
The deal will create good-paying, union jobs. With the President’s Build Back Better Agenda, these investments will add, on average, around 2 million jobs per year over the course of the decade, while accelerating America’s path to full employment and increasing labor force participation.
President Biden believes that we must invest in our country and in our people by creating good-paying union jobs, tackling the climate crisis, and growing the economy sustainably and equitably for decades to come. The Bipartisan Infrastructure Deal will deliver progress towards those objectives for working families across the country. The Bipartisan Infrastructure Deal:
Makes the largest federal investment in public transit ever
Makes the largest federal investment in passenger rail since the creation of Amtrak
Makes the single largest dedicated bridge investment since the construction of the interstate highway system
Makes the largest investment in clean drinking water and waste water infrastructure in American history, delivering clean water to millions of families
Ensures every American has access to reliable high-speed internet
Helps us tackle the climate crisis by making the largest investment in clean energy transmission and EV infrastructure in history; electrifying thousands of school and transit buses across the country; and creating a new Grid Development Authority to build a clean, 21st century electric grid
The President promised to work across the aisle to deliver results for working families. He believes demonstrating that democracies can deliver is a critical challenge for his presidency. Today’s agreement shows that we can come together to position American workers, farmers, and businesses to compete and win in the 21st century.
Roads, Bridges, and Major Projects
One in five miles, or 173,000 total miles, of our highways and major roads and 45,000 bridges are in poor condition. Bridges in poor condition pose heightened challenges in rural communities, which often may rely on a single bridge for the passage of emergency service vehicles. The Bipartisan Infrastructure Deal will invest $110 billion of new funds for roads, bridges, and major projects, and reauthorize the surface transportation program for the next five years building on bipartisan surface transportation reauthorization bills passed out of committee earlier this year. This investment will repair and rebuild our roads and bridges with a focus on climate change mitigation, resilience, equity, and safety for all users, including cyclists and pedestrians. The bill includes a total of $40 billion of new funding for bridge repair, replacement, and rehabilitation, which is the single largest dedicated bridge investment since the construction of the interstate highway system. The bill also includes a total of $17.5 billion for major projects that are too large or complex for traditional funding programs but will deliver significant economic benefits to communities.
America has one of the highest road fatality rates in the industrialized world. The deal invests $11 billion in transportation safety programs, including a new Safe Streets for All program to help states and localities reduce crashes and fatalities in their communities, especially for cyclists and pedestrians. It will more than double funding directed to programs that improve the safety of people and vehicles in our transportation system, including highway safety, truck safety, and pipeline and hazardous materials safety.
America’s transit infrastructure is inadequate – with a multibillion-dollar repair backlog, representing more than 24,000 buses, 5,000 rail cars, 200 stations, and thousands of miles of track, signals, and power systems in need of replacement. The deal invests $39 billion of new investment to modernize transit, and improve accessibility for the elderly and people with disabilities, in addition to continuing the existing transit programs for five years as part of surface transportation reauthorization. This is the largest Federal investment in public transit in history, and devotes a larger share of funds from surface transportation reauthorization to transit in the history of the programs. It will repair and upgrade aging infrastructure, modernize bus and rail fleets, make stations accessible to all users, and bring transit service to new communities. It will replace thousands of transit vehicles, including buses, with clean, zero emission vehicles. And, it will benefit communities of color since these households are twice as likely to take public transportation and many of these communities lack sufficient public transit options.
Passenger and Freight Rail
Unlike highways and transit, rail lacks a multi-year funding stream to address deferred maintenance, enhance existing corridors, and build new lines in high-potential locations. The deal positions Amtrak and rail to play a central role in our transportation and economic future. This is the largest investment in passenger rail since the creation of Amtrak 50 years ago. The deal invests $66 billion in rail to eliminate the Amtrak maintenance backlog, modernize the Northeast Corridor, and bring world-class rail service to areas outside the northeast and mid-Atlantic. Within these totals, $22 million would be provided as grants to Amtrak, $24 billion as federal-state partnership grants for Northeast Corridor modernization, $12 billion for partnership grants for intercity rail service, including high-speed rail, $5 billion for rail improvement and safety grants, and $3 billion for grade crossing safety improvements.
U.S. market share of plug-in electric vehicle (EV) sales is only one-third the size of the Chinese EV market. The President believes that must change. The bill invests $7.5 billion to build out a national network of EV chargers. This is the first-ever national investment in EV charging infrastructure in the United States and is a critical element in the Biden-Harris Administration’s plan to accelerate the adoption of EVs to address the climate crisis and support domestic manufacturing jobs. The bill will provide funding for deployment of EV chargers along highway corridors to facilitate long-distance travel and within communities to provide convenient charging where people live, work, and shop. Federal funding will have a particular focus on rural, disadvantaged, and hard-to-reach communities.
American school buses play a critical role in expanding access to education, but they are also a significant source of pollution. The deal will deliver thousands of electric school buses nationwide, including in rural communities, helping school districts across the country buy clean, American-made, zero emission buses, and replace the yellow school bus fleet for America’s children. The deal invests $2.5 billion in zero emission buses, $2.5 billion in low emission buses, and $2.5 billion for ferries. These investments will drive demand for American-made batteries and vehicles, creating jobs and supporting domestic manufacturing, while also removing diesel buses from some of our most vulnerable communities. In addition, they will help the more than 25 million children and thousands of bus drivers who breathe polluted air on their rides to and from school. Diesel air pollution is linked to asthma and other health problems that hurt our communities and cause students to miss school, particularly in communities of color and Tribal communities.
Too often, past transportation investments divided communities – like the Claiborne Expressway in New Orleans or I-81 in Syracuse – or it left out the people most in need of affordable transportation options. In particular, significant portions of the interstate highway system were built through Black neighborhoods. The deal creates a first-ever program to reconnect communities divided by transportation infrastructure. The program will fund planning, design, demolition, and reconstruction of street grids, parks, or other infrastructure through $1 billion of dedicated funding.
Airports, Ports, and Waterways
The United States built modern aviation, but our airports lag far behind our competitors. According to some rankings, no U.S. airports rank in the top 25 of airports worldwide. Our ports and waterways need repair and reimagination too. The bill invests $17 billion in port infrastructure and $25 billion in airports to address repair and maintenance backlogs, reduce congestion and emissions near ports and airports, and drive electrification and other low-carbon technologies. Modern, resilient, and sustainable port, airport, and freight infrastructure will support U.S. competitiveness by removing bottlenecks and expediting commerce and reduce the environmental impact on neighboring communities.
Resilience and Western Water Infrastructure
Millions of Americans feel the effects of climate change each year when their roads wash out, airport power goes down, or schools get flooded. Last year alone, the United States faced 22 extreme weather and climate-related disaster events with losses exceeding $1 billion each – a cumulative price tag of nearly $100 billion. People of color are more likely to live in areas most vulnerable to flooding and other climate change-related weather events. The deal makes our communities safer and our infrastructure more resilient to the impacts of climate change and cyber attacks, with an investment of over $50 billion. This includes funds to protect against droughts and floods, in addition to a major investment in weatherization. The bill is the largest investment in the resilience of physical and natural systems in American history.
Clean Drinking Water
Currently, up to 10 million American households and 400,000 schools and child care centers lack safe drinking water. The deal’s $55 billion investment represents the largest investment in clean drinking water in American history, including dedicated funding to replace lead service lines and the dangerous chemical PFAS (per- and polyfluoroalkyl). It will replace all of the nation’s lead pipes and service lines. From rural towns to struggling cities, the deal invests in water infrastructure across America, including in Tribal Nations and disadvantaged communities that need it most.
Broadband internet is necessary for Americans to do their jobs, to participate equally in school learning, health care, and to stay connected. Yet, by one definition, more than 30 million Americans live in areas where there is no broadband infrastructure that provides minimally acceptable speeds – a particular problem in rural communities throughout the country. The deal’s $65 billion investment ensures every American has access to reliable high-speed internet with an historic investment in broadband infrastructure deployment, just as the federal government made a historic effort to provide electricity to every American nearly one hundred years ago.
The bill will also help lower prices for internet service by requiring funding recipients to offer a low-cost affordable plan, by creating price transparency and helping families comparison shop, and by boosting competition in areas where existing providers aren’t providing adequate service. It will also help close the digital divide by passing the Digital Equity Act, ending digital redlining, creating a permanent program to help more low-income households access the internet, and establishing a new program to help low-income households obtain the devices required to access the internet.
In thousands of rural and urban communities around the country, hundreds of thousands of former industrial and energy sites are now idle – sources of blight and pollution. 26% of Black Americans and 29% of Hispanic Americans live within 3 miles of a Superfund site, a higher percentage than for Americans overall. Proximity to a Superfund site can lead to elevated levels of lead in children’s blood. The deal invests $21 billion in environmental remediation, making the largest investment in addressing the legacy pollution that harms the public health of communities and neighborhoods in American history, creating good-paying union jobs in hard-hit energy communities and advancing economic and environmental justice. The bill includes funds to clean up superfund and brownfield sites, reclaim abandoned mine land and cap orphaned gas wells.
As the recent Texas power outages demonstrated, our aging electric grid needs urgent modernization. A Department of Energy study found that power outages cost the U.S. economy up to $70 billion annually. The deal’s $73 billion investment is the single largest investment in clean energy transmission in American history. It upgrades our power infrastructure, including by building thousands of miles of new, resilient transmission lines to facilitate the expansion of renewable energy. It creates a new Grid Deployment Authority, invests in research and development for advanced transmission and electricity distribution technologies, and promotes smart grid technologies that deliver flexibility and resilience. It invests in demonstration projects and research hubs for next generation technologies like advanced nuclear reactors, carbon capture, and clean hydrogen.
In the years ahead, the deal, which will generate significant economic benefits, and it is financed through a combination of redirecting unspent emergency relief funds, targeted corporate user fees, strengthening tax enforcement when it comes to crypto currencies, and other bipartisan measures, in addition to the revenue generated from higher economic growth as a result of the investments.
Tinder, Hinge, Match, OkCupid, BLK, Chispa, Plenty of Fish, Bumble, and Badoo to create badges displaying vaccination status and offer vaccinated Americans free premium benefits
In support of President Biden’s goal of getting 70 percent of adults at least one shot by July 4, the largest dating apps in America will launch new features to encourage Americans to get vaccinated. These companies join organizations across the country that have answered the President’s call by stepping up and offering incentives and information to help Americans get vaccinated.
Today, dating apps are announcing that they will offer a variety of features such as:
Badges showing vaccination status
Access to free premium content like boosts, super likes, and super swipes for vaccinated people
In-app promotions and links to vaccines.gov or the text code for users
Filters so individuals can see individuals who have been vaccinated
Tinder: Members will be able to add stickers to their profile including “I’m Vaccinated” or “Vaccines Save Lives.” And vaccinated users will have access to free premium content like a “Super Like” to help them stand out among potential matches. Tinder will also launch a “Vaccine Center” with a suite of resources to education and connect users with their nearest vaccination site. Tinder is the world’s biggest non-gaming app.
OkCupid: Daters will be able toadd an “I’m Vaccinated” profile badge and be featured within OkCupid’s “Vaccinated Stacks,” a new matching system that lets users search by vaccination status. Vaccinated people will also receive a free “Boost” to move their profile to the front of a daters’ stack. The campaign will begin on May 24 and will continue to help daters “Match on What Matters.”
Bumble and Badoo will enable all U.S. customers to add a “vaccinated” badge to their profiles. In addition, Bumble and Badoo will give vaccinated users complimentary credits for premium features such as Spotlight and Superswipes across both apps. The apps will also leverage their network of influencers to amplify the need to get vaccinated as part of a push this summer.
BLK will add a new “Vaxified” profile badge for singles to show their support in ending the COVID-19 pandemic. When vaccinated individuals add the badge to their profile, they will receive a free “Boost” on the app to be one of the first profiles seen by potential matches. The features will launch on June 1. BLK is the largest dating app made for Black singles.
Chispa will add a new “Vacunado” profile badge for Latinx singles to show their support for ending the pandemic. Vaccinated individuals who add the badge will get a free “Boost,” making them one of the first profiles to be seen by their matches. The feature will be available starting June 1. Chispa is the largest dating app for Latino singles in English and Spanish.
Hinge: Hinge will encourage users to share their vaccination status on their profile and give vaccinated users a free “Rose,” which is premium content that indicates to other users that they’re especially excited to get to know them. As the dating app “designed to be deleted,” Hinge is focused on helping its community get back out on dates and in safe relationships.
Match: Members will have the option to add a new “Vaccinated” badge to their profile to display their vaccine status, with vaccinated Americans getting access to a free “Boost” to help them stand out on the app.
Plenty of Fish: Members will be able to add an “I Got My Shot” badge to their profiles in early June. Those who participate will receive 20 Live! credits to use on the Plenty of Fish Live! streaming feature. In the spirit of Plenty of Fish’s mission to create low pressure dating experiences, this campaign will provide members with one less question to ask so they can start building meaningful connections.
More than 60% of U.S. adults have gotten at least one vaccine shot. It’s easier than ever to get vaccinated, with more than 80,000 locations with vaccines and 90% of Americans live within 5 miles of a vaccine. Find out more about where to get vaccinated by visiting Vaccines.gov or texting their zip code 438829.
Today, just days after Colonial Pipeline, which supplies 45 percent of the gasoline to the Eastern Seaboard, was hit by a ransomware attack which the FBI believes was perpetrated by DarkSide, a relatively new criminal group based in Eastern Europe exposed the vulnerability of key U.S. infrastructure, President Biden signed an Executive Order to improve the nation’s cybersecurity and protect federal government networks.
The White House supplied this fact sheet about the actions taken under the Executive Order:
Recent cybersecurity incidents such as SolarWinds, Microsoft Exchange, and the Colonial Pipeline incident are a sobering reminder that U.S. public and private sector entities increasingly face sophisticated malicious cyber activity from both nation-state actors and cyber criminals. These incidents share commonalities, including insufficient cybersecurity defenses that leave public and private sector entities more vulnerable to incidents.
This Executive Order makes a significant contribution toward modernizing cybersecurity defenses by protecting federal networks, improving information-sharing between the U.S. government and the private sector on cyber issues, and strengthening the United States’ ability to respond to incidents when they occur. It is the first of many ambitious steps the Administration is taking to modernize national cyber defenses. However, the Colonial Pipeline incident is a reminder that federal action alone is not enough. Much of our domestic critical infrastructure is owned and operated by the private sector, and those private sector companies make their own determination regarding cybersecurity investments. We encourage private sector companies to follow the Federal government’s lead and take ambitious measures to augment and align cybersecurity investments with the goal of minimizing future incidents.
Specifically, the Executive Order the President is signing today will:
Remove Barriers to Threat Information Sharing Between Government and the Private Sector. The Executive Order ensures that IT Service Providers are able to share information with the government and requires them to share certain breach information. IT providers are often hesitant or unable to voluntarily share information about a compromise. Sometimes this can be due to contractual obligations; in other cases, providers simply may be hesitant to share information about their own security breaches. Removing any contractual barriers and requiring providers to share breach information that could impact Government networks is necessary to enable more effective defenses of Federal departments, and to improve the Nation’s cybersecurity as a whole.
Modernize and Implement Stronger Cybersecurity Standards in the Federal Government. The Executive Order helps move the Federal government to secure cloud services and a zero-trust architecture, and mandates deployment of multifactor authentication and encryption with a specific time period. Outdated security models and unencrypted data have led to compromises of systems in the public and private sectors. The Federal government must lead the way and increase its adoption of security best practices, including by employing a zero-trust security model, accelerating movement to secure cloud services, and consistently deploying foundational security tools such as multifactor authentication and encryption.
Improve Software Supply Chain Security. The Executive Order will improve the security of software by establishing baseline security standards for development of software sold to the government, including requiring developers to maintain greater visibility into their software and making security data publicly available. It stands up a concurrent public-private process to develop new and innovative approaches to secure software development and uses the power of Federal procurement to incentivize the market. Finally, it creates a pilot program to create an “energy star” type of label so the government – and the public at large – can quickly determine whether software was developed securely. Too much of our software, including critical software, is shipped with significant vulnerabilities that our adversaries exploit. This is a long-standing, well-known problem, but for too long we have kicked the can down the road. We need to use the purchasing power of the Federal Government to drive the market to build security into all software from the ground up.
Establish a Cybersecurity Safety Review Board. The Executive Order establishes a Cybersecurity Safety Review Board, co-chaired by government and private sector leads, that may convene following a significant cyber incident to analyze what happened and make concrete recommendations for improving cybersecurity. Too often organizations repeat the mistakes of the past and do not learn lessons from significant cyber incidents. When something goes wrong, the Administration and private sector need to ask the hard questions and make the necessary improvements. This board is modeled after the National Transportation Safety Board, which is used after airplane crashes and other incidents.
Create a Standard Playbook for Responding to Cyber Incidents. The Executive Order creates a standardized playbook and set of definitions for cyber incident response by federal departments and agencies. Organizations cannot wait until they are compromised to figure out how to respond to an attack. Recent incidents have shown that within the government the maturity level of response plans vary widely. The playbook will ensure all Federal agencies meet a certain threshold and are prepared to take uniform steps to identify and mitigate a threat. The playbook will also provide the private sector with a template for its response efforts.
Improve Detection of Cybersecurity Incidents on Federal Government Networks. The Executive Order improves the ability to detect malicious cyber activity on federal networks by enabling a government-wide endpoint detection and response system and improved information sharing within the Federal government. Slow and inconsistent deployment of foundational cybersecurity tools and practices leaves an organization exposed to adversaries. The Federal government should lead in cybersecurity, and strong, Government-wide Endpoint Detection and Response (EDR) deployment coupled with robust intra-governmental information sharing are essential.
Improve Investigative and Remediation Capabilities. The Executive Order creates cybersecurity event log requirements for federal departments and agencies. Poor logging hampers an organization’s ability to detect intrusions, mitigate those in progress, and determine the extent of an incident after the fact. Robust and consistent logging practices will solve much of this problem.
Over the first three full months of the Biden-Harris Administration, the economy added more than 1.5 million jobs, or more than 500,000 jobs per month on average. That compares to an average of 60,000 jobs per month in the three previous months. These three months have seen the strongest first three months of job growth of any administration.
Despite this progress, there’s more work to do to climb out of the economic crisis brought on by the pandemic. The Biden-Harris Administration is acting aggressively to ensure that the millions of Americans who remain unemployed, through no fault of their own, can find safe, good-paying work as quickly as possible. That’s why the President is announcing today that the Administration will take steps to remove barriers that are preventing Americans from returning safely to good-paying work and take steps to make it easier for employers to hire new workers.
And, the President and the Administration will reaffirm the basic rules of the unemployment insurance (UI) program. Anyone receiving UI who is offered a suitable job must take it or lose their UI benefits. A core purpose of the UI program is helping workers get back to work, and UI provides laid-off workers with temporary assistance to help pay bills and relieve hardship. By reaffirming these rules and purposes, the Administration will ensure that the UI program continues to support workers and facilitate hiring.
“Let’s be clear,” President Joe Biden stated, “our economic plan is working. I never said — and no serious analyst ever suggested — that climbing out of the deep, deep hole our economy was in would be simple, easy, immediate, or perfectly steady. Remember, 22 million Americans lost their jobs in this pandemic.
“So, some months will exceed expectations; others will fall short. The question is, ‘What is the trendline? Are we headed in the right direction? Are we taking the right steps to keep it going?’ And the answer, clearly, is yes…
“Twenty-two million people lost their jobs in this pandemic through no fault of their own. They lost their jobs to a virus, and to a government that bungled its response to the crisis and failed to protect them.
“We still have 8 million fewer jobs than we did when the pandemic started. And for many of those folks, unemployment benefits are a lifeline. No one should be allowed to game the system and we’ll insist the law is followed, but let’s not take our eye off the ball…
“So we need to stay focused on creating jobs and beating this pandemic today, and building back better for tomorrow. The American Rescue Plan is just that: a rescue plan. It’s to get us out of the crisis and back on the track, but it’s not nearly enough.
“That’s why we need the American Jobs Plan, which is an eight-year investment — an eight-year investment strategy to make sure working people of this country get to share in the benefits of a rising economy, and to put us in a position to win the competition with China and the rest of the world for the 21st century.”
Specifically, today the President is:
REMOVING BARRIERS THAT ARE KEEPING AMERICANS FROM RETURNING SAFELY TO GOOD-PAYING WORK
Accelerating the Provision of Assistance to Hard-Hit Child Care Providers to Get More Parents Back to Work
Between February 2020 and March 2021, 520,000 mothers and 170,000 fathers between ages 20 and 54 left the labor force and have not returned. Many need or want to work but cannot because of child care disruptions. At the same time, early childhood and child care providers – nearly all small businesses, overwhelmingly owned by women and disproportionately owned by people of color – have been hit hard by the pandemic. According to one survey, as of December, about one in four child care providers open at the start of the pandemic were closed, hindering access to care, especially for families of color. Child care providers that have stayed open have gone to enormous lengths to do so and are struggling to stay open: two in five providers report taking on debt for their programs using personal credit cards to pay for increased costs and three in five work in programs that have reduced expenses through layoffs, furloughs, or pay cuts. And, there are 150,000 fewer child care jobs today than there were at the beginning of the pandemic.
The American Rescue Plan provides funding to address the child care crisis caused by COVID-19 to help parents who need or want to work to return to their jobs. This includes funding to stabilize the child care industry so that parents can send their children to safe, healthy, stable child care environments and additional funding to help families access affordable, high-quality care, including by providing subsidized care to more than 800,000 families with the greatest need and by providing resources for hard-hit child care providers.
Today, the Department of Health and Human Services is releasing guidance to states, tribes, and territories so that states can start getting the child care stabilization funding to providers immediately. The guidance will encourage states to get funding out quickly and to make it as easy as possible for hundreds of thousands of child care providers, including centers and family-based providers, to receive the funding. It will also encourage states to allow the funds to be used broadly to meet the unique needs of providers so they can reopen or maintain essential services. It will explain, for example, how they can use the funds to bolster their workforce, cover expenses like rent and utilities, and pay for goods and services needed to stay open or reopen. And, it will provide guidance on ways providers can use funds to help them operate according to CDC guidelines, so that as parents return to work, they can have peace of mind their children are in a safe and healthy learning environment. In all, these funds will support child care providers in keeping their doors open, benefiting the parents of more than 5 million children who rely on them to stay in or return to the labor force.
And, thanks to the historic expansion of the Child and Dependent Care Tax Credit (CDCTC) in the American Rescue Plan, families can rest assured that they can receive up to half of their child care expenses this year when they file taxes for 2021. A median income family with two kids under age 13 will receive a tax credit of up to $8,000 towards this year’s expenses, compared with a maximum of $1,200 previously.
Directing the Secretary of Labor to Safely Expand States’ Reemployment Services and Workforce Development Boards’ Jobs Counseling for Unemployment Beneficiaries.
States receive federal funding for Reemployment Services and Eligibility Assessments (RESEA) of UI beneficiaries to help them find employment while ensuring they remain eligible for benefits. These services shorten workers’ time on unemployment benefits by helping them match with good jobs and confirm their eligibility for benefits. States significantly and appropriately slowed in-person RESEA meetings in the midst of historic unemployment and the COVID-19 pandemic. With the economy and jobs growing again, the President will direct the Secretary of Labor to issue guidance to states to quickly and safely – consistent with CDC and OSHA guidance – expand their RESEA programs so that more UI beneficiaries can return to work.
Similarly, the public workforce system’s Workforce Development Boards (WDB) collectively receive hundreds of millions of dollars they can use to provide individualized career counseling, called “individual career services,” to job seekers. However, because of the pandemic’s risks, many WDBs stopped providing in-person services and had to quickly transition to remote services. Now that tens of millions of Americans have been vaccinated, and we know how to operate physical locations safely, the President will direct the Secretary of Labor to work with the public workforce system to provide the maximum level possible of individual career services to UI beneficiaries and other unemployed workers using existing resources, and in a manner consistent with CDC and OSHA guidance.
MAKING IT EASIER FOR EMPLOYERS TO HIRE NEW WORKERS
Supporting Hard-Hit Restaurants and Bars
Restaurants, bars, and other small businesses offering on-site food and beverages are vital to our communities and economy. From big cities to small towns, these restaurants and bars offer communities a place to gather, celebrate, and share ideas. They also employed nearly 12 percent of all workers prior to the pandemic. Despite their importance, restaurants and bars have suffered severely during the pandemic. The leisure and hospitality sector, which includes restaurants and bars, had 17 percent fewer jobs this April than in February 2020.
Though we have seen significant progress under the Biden-Harris Administration – leisure and hospitality added 331,000 jobs in April, by far the most of any industry and more than it added in March – there is still more work to do to help this critical sector recover. Established through the American Rescue Plan, the Biden-Harris Administration recently launched the Restaurant Revitalization Fund (RRF) – a program to aid restaurants, bars, food trucks, and other food and drink establishments. These grants will give restaurants and bars the flexibility to hire back workers at good wages. In the first two days of the program, 186,200 restaurants, bars, and other eligible businesses in all 50 states, Washington, D.C., and five U.S. Territories applied for relief.
Today, the Administration is sending the first grants under the program to 16,000 hard-hit restaurants. These include restaurants in states and territories throughout the country, and restaurants owned and controlled by women, veterans, and socially and economically disadvantaged individuals.
Providing States and Localities with the Resources They Need to Help Return Americans to Work
The American Rescue Plan delivered flexible Coronavirus State and Local Fiscal Recovery Funds that will help state and local governments hire back public sector workers; ramp up the effectiveness of their COVID response and vaccination programs to make return to work, school, and care safer; and bolster efforts to help workers negatively affected by the pandemic to train for and secure good-paying jobs. With today’s announcement, the U.S. Department of Treasury is making the first segment of these funds available to states and localities and laying out how these funds can be used to address pandemic-response needs and support the communities and populations hardest-hit by the COVID-19 crisis.
State and local employment remains 1.3 million jobs down since before the pandemic. Learning from the mistakes of the Great Recession, when state and local government budget cuts were a drag on GDP growth for 23 of the 26 quarters following the crisis, the funds will provide these governments with the resources needed to help address challenges in returning Americans to work. This includes in the public sector, where state and local employment remains down over one million jobs since the start of the pandemic. Fiscal Recovery Funds will help bring firefighters, teachers, school staff, cops, and other public servants back to work.
Helping Employers – Especially Small Businesses – Rehire and Retain Workers Through the Extended and Expanded Employee Retention Credit
To help hard-hit employers rehire and retain workers, President Biden extended and expanded the Employee Retention Credit (ERC) in the American Rescue Plan. This year, the ERC offers eligible employers with 500 or fewer employees a tax credit of 70 percent of the first $10,000 in wages per employee per quarter. In other words, this refundable, advanceable credit will cover up to $7,000 in wages per quarter or $28,000 per year for each employee. For example:
A small independent retailer in Milwaukee, Wisconsin with 25 employees has $130,000 in payroll expenses per quarter (all for employees earning less than $10,000 in the quarter), and experiences a 25 percent decline in gross receipts in the first quarter of 2021 compared to the first quarter of 2019. The retailer is eligible for the Employee Retention Credit in the first quarter since it experienced a greater than 20 percent decline in gross receipts. The retailer is also eligible for the ERC in the second quarter because of the decline as compared to 2019 in the immediately preceding first quarter. The retailer can claim a tax credit of $91,000 in both the first and second quarters (for a total of $182,000). The amount of the tax credit would be applied against the retailer’s quarterly federal payroll tax amount, and then, assuming that the $91,000 was in excess of the total liability for the quarter, the excess would be advanced (or paid by the government directly to the retailer). If the retailer experienced declines in gross receipts in the third quarter as compared to 2019, it could claim an additional tax credit (in a similar amount) for the third quarter and the fourth quarter. The small retail business could use this advance – which could amount to tens of thousands of dollars – to rehire workers, raise wages, improve facilities, and purchase new inventory.
While more than 30,000 small businesses have already claimed more than $1 billion in ERCs this year, the Biden-Harris Administration is working to increase awareness of and participation in this beneficial program. Specifically, this week, the Treasury Department will disseminate clear and concise steps on how businesses can determine their eligibility and claim the ERC. These and other efforts will help businesses bring employees back sooner and keep them on the job as the economy recovers.
Helping Employers Ramp Back Up
As businesses ramp back up without knowing how many workers they will need to operate as the economy recovers, some will look to bring workers on part-time. The UI system offers options for these employers and their returning workers. Workers shouldn’t have to choose between losing their full UI benefits to take part-time work that represents only a portion of their original salary. The Department of Labor will announce this week how unemployed workers who are rehired part-time don’t have to face that choice. They can work part-time while still receiving part of their UI benefits so they can work and still make ends meet.
There are two programs that can help and the Department of Labor this week will help highlight them:
Short-Time Compensation: Short-time compensation was designed to help prevent layoffs by allowing workers to remain employed at reduced hours and still collect a portion of their UI benefits. But it can also be used to help employers rehire their already laid off workers. If an employer brings a laid-off employee back part-time and participates in the short-time compensation program, that worker will receive pro-rated UI benefits to help cover reduced compensation for not working full time, as well as the $300 weekly supplement until that supplement expires September 6th.
The Biden-Harris Administration will highlight this program to help employers rehire their laid-off employees in the coming weeks and work to make it as easy as possible for employers and workers to participate. Short-time compensation programs are currently available in . These benefits are fully federally funded through September 6 for those states.
Partial UI: Another overlooked option for helping employers ramp up is the partial UI program, which allows workers to return to work at a new employer at reduced hours while still receiving some unemployment benefits. This is a good option for workers who may not qualify for short-time compensation because they are not returning to their previous employer. States can enhance the capacity of partial UI by raising the income threshold where workers can both work and receive some UI benefits, and the Department of Labor will be encouraging states to do so.
CLARIFYING RULES OF THE UI PROGRAM
This week, the Department of Labor will reaffirm longstanding UI requirements to make sure everyone, including states, employers, and workers, understands the rules of the road for UI benefits. These clarifications will also help ease a return to work. Specifically, the Secretary of Labor will issue a letter to states to reaffirm that individuals receiving UI may not continue to receive benefits if they turn down a suitable job due to a general, non-specific concern about COVID-19. In addition, the President is directing the Secretary of Labor to work with states to reinstate work search requirements for UI recipients, if health and safety conditions allow.
Clarifying Rules of UI Programs: The Department of Labor will clarify that, under all UI programs including the Pandemic Unemployment Assistance (PUA) program put in place last year, workers may not turn down a job due to a general, non-specific concern about COVID-19 and continue to receive benefits. Under the PUA program, a worker may receive benefits if the worker certifies weekly that one of the few specific COVID-related reasons specified by Congress is the cause of their unemployment. These reasons include, for example, that the worker has a child at home who cannot go to school because of the pandemic or that the worker is offered a job at a worksite that is out of compliance with federal or state health requirements. Moreover, workers may not misreport a COVID-related reason for unemployment. The President is directing the Department of Labor to take concrete steps to raise awareness about these and other requirements.
Directing the Secretary of Labor to Work with States on Work Search Requirements: The President is directing the Secretary of Labor to work with states to reinstate work search requirements for UI recipients, if health and safety conditions allow. As part of the Families First Coronavirus Response Act signed into law last year by the previous Administration, states receiving certain federal relief funds were required to waive their requirements that workers search for work in order to continue receiving unemployment benefits. While 29 states have already reinstated their work search requirements, the President is directing the Department of Labor to work with the remaining states, as health and safety conditions allow, to put in place appropriate work search requirements as the economy continues to rebound, vaccinations increase, and the pandemic is brought under control.
A core purpose of the UI program is helping workers get back to work. UI keeps workers connected to the labor market during spells of unemployment by providing workers with income that allows them to look for a job match commensurate with their skills or prior wages. UI recipients also gain access to crucial reemployment services to help with job search or retraining where necessary. Ensuring a good job match is good for workers, as well as employers who want the best candidates for their jobs.
Returning to work during a pandemic is more complicated than searching for work in ordinary times. The COVID-19 pandemic remains a genuine challenge for our country, with infections, hospitalizations, and deaths down substantially when compared with last year, but still at unacceptably high levels. While vaccinations are on the rise with over half of American adults having received at least one shot, around a quarter of those aged 18 to 29 and around a third of those aged 30 to 39 are fully vaccinated. There is a great deal more to do.
At the same time, our economy is growing again at an annual rate of more than 6% and more than 1.5 million jobs have been created over the last three months. Many more workers would like to return to work if they can overcome the barriers that stand in the way. We can and will continue to ensure workers and their families are protected from COVID-19, while also helping those who are able and available to search for good jobs in safe and healthy workplaces.
‘Key to Getting Funds Into Hands of Providers’
Katie Hamm, acting deputy assistant secretary for Early Childhood Development at HHS’ Administration for Children and Families, stated, “Today, the Administration for Children and Families (ACF) released guidance to support states, territories, and tribes in distributing $24 billion in relief funds for child care providers. The guidance explains specific requirements related to the child care stabilization funds and identifies opportunities for states, territories, and tribes to leverage these resources to support a wide range of child care providers.
“The guidance is key to getting funds into the hands of providers that employ essential workers and help make child care accessible to working families. These funds essentially help stabilize the industry and spur economic growth in communities hit hardest by the pandemic. Most of these funds will go to providers and can be used for a variety of operating expenses, including wages and benefits, rent and utilities, personal protective equipment and sanitization and cleaning.
“This guidance lays out a roadmap for stabilizing the child care sector. The document is meant to support and guide child care agencies in awarding grants to child care centers and family child care providers, which are vital to our nation’s economic recovery.”
The White House released fact sheets that highlight the need for and impact of the investments proposed by President Biden in the American Families Plan in states and territories across the country. The American Families Plan is a once-in-a-generation investment in the foundations of middle-class prosperity: education, health care, and child care.
The fact sheets highlight how many families would benefit from free community college and universal pre-K, the high costs of child care, the number of workers who lack access to paid family leave, and the thousands of dollars families and workers would save in tax cuts and credits.
Individual fact sheets for each of the 50 states, the District of Columbia, Puerto Rico, and other territories are linked below.
These fact sheets are the latest in a series from the White House highlighting the benefits of the American Families Plan for communities, in addition to a series of fact sheets on the American Jobs Plan. Fact sheets on how the American Families Plan advances racial equity and supports rural America have been released in recent weeks.
The White House issued a fact sheet explaining how President Joe Biden’s American Families Plan will support children, teachers and working families in rural America:
President Biden knows a strong middle-class is the backbone of America and that rural and tribal communities are essential to the economic growth of our country. Rural communities require targeted investments that meet the needs of their children and families, along with workforce development for those providing childcare and education. The American Families Plan represents a generation-defining investment in rural America, and a commitment to grow the middle-class and expand the benefits of economic growth to all Americans. All told, by extending and building upon the provisions of the American Rescue Plan, the American Families Plan would cut the rural poverty rate by more than 21 percent and the rural child poverty rate by 50 percent, relative to the projected poverty rate for 2022.
UNIVERSAL PRE-SCHOOL FOR 3- AND 4-YEAR OLDS
Low population density, physical isolation, and broad spatial distribution make access to preschool more challenging for low-income families in rural areas. President Biden’s American Families Plan will:
Provide free universal pre-school to all 3- and 4-year-olds, benefitting 5 million children. This historic investment in America’s future will first prioritize high-need areas and enable communities and families to choose the settings that work best for them, whether that’s a preschool classroom in a public school, a center, or a Head Start program. The President’s plan will invest in tuition-free community college and teacher scholarships to support those who wish to earn a bachelor’s degree or other credential that supports their work as an educator or their work to become an early childhood educator. And educators will receive job-embedded coaching, professional development, and wages that reflect the importance of their work. All employees in participating Pre-K programs and Head Start will earn at least $15 per hour, and those with comparable qualifications will receive compensation and benefits similar to elementary school teachers.
FREE COMMUNITY COLLEGE AND OTHER POSTSECONDARY INVESTMENTS
There are approximately 250 rural community colleges across the U.S., with an even greater number of community colleges that serve a primarily rural student population. Colleges and universities are important anchor institutions in rural communities, providing jobs to residents, attracting businesses, and boosting local economies.
President Biden’s American Families Plan will:
Provide two years of free community college so that first-time students and workers wanting to reskill can enroll in a community college without paying tuition and fees.
Increase the maximum Pell Grant award by approximately $1,400 to provide additional assistance to low-income students and also allow DREAMers to access the grant.
Provide grants to increase college retention and completion, allowing states, territories, and Tribes to support the adoption and expansion of evidence-based practices and promising solutions that help students complete their degrees.
Increase funding to support Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), and institutions such as Hispanic-serving institutions (HSIs), Asian American and Native American Pacific Islander-serving institutions (AANAPISIs), and other Minority-Serving Institutions (MSIs), and the students they serve. This will provide two years of subsidized tuition, as well as funding to support institutional development and the strengthening of the health care workforce, which will benefit rural areas where the need for physicians, nurses, and other providers continues to limit access to care.
Education and Preparation for Teachers
More than 9 million students—nearly one in five students—attend a rural school in the U.S. But these schools face challenges in hiring and retaining teachers, particularly in special education and specialized instruction.
President Biden’s American Families Plan will:
Address teacher shortages, improve teacher preparation, and strengthen pipelines for teachers of color. President Biden is calling on Congress to double scholarships for future teachers from $4,000 to $8,000 per year while earning their degree and expand it to early childhood educators. The President’s plan would also invest $3.2 billion to cultivate and recruit teachers from the communities that schools serve, provide year-long, paid residency programs, and invest in teacher preparation at HBCUs, TCUs, and MSIs.
Support the development of special education teachers. There has been a 17 percent decline in the number of special educators over the last decade. Additionally, while only about half of the students receiving special education services are white, approximately 82 percent of special education teachers are white. The American Families Plan will invest $900 million in personnel preparation funds under the Individuals with Disabilities Education Act (IDEA), funding pathways to additional certifications and strengthening existing teacher preparation programs for special educators.
Help current teachers earn in-demand credentials. President Biden is calling on Congress to create a new fund to provide educators with opportunities to obtain additional certifications in high-demand areas like special education, bilingual education, and certifications that improve teacher performance. This fund will support over 100,000 educators, with priority for public school teachers with at least two years of experience at schools with a significant number of low-income students or significant teacher shortages.
Invest in educator leadership. President Biden is calling on Congress to invest $2 billion in programs that leverage teachers as leaders to multiply their impact within their school, such as high-quality mentoring programs that leverage current teachers as mentors for new teachers, which improve student outcomes and increase teacher retention rates while keeping great teachers in the classroom.
Lack of access to affordable, high-quality child care is making it hard for parents to work and provide for their families. Many rural families have to go without care, and without sufficient demand, it can be challenging for centers to afford to operate. Over half of rural families live in a child care desert, meaning there are few or no child care options. In particular, rural families disproportionately lack access to child care centers serving infants and toddlers.
The American Families Plan builds on investments in President Biden’s American Jobs Plan and will further expand access to high-quality child care in rural areas.
President Biden’s American Families Plan will:
Make child care more affordable. Families will pay only a portion of their income on child care based on a sliding scale. For the most-hard pressed working families, child care costs for their young children would be fully covered and families earning up to 1.5 times their state median income will spend no more than 7% of their income on child care for young children.
Ensure this child care is high quality. The American Families plan will ensure child care providers, including centers and home-based providers, receive funding to provide the true cost of quality early childhood education—including a developmentally appropriate curriculum, small class sizes, and culturally and linguistically responsive environments that are inclusive of children with disabilities.
Invest in the care workforce across rural America. Early childhood educators are among the most underpaid workers in the country and nearly half rely on public income support programs. The typical child care worker earned $12.24 per hour in 2020—while receiving few, if any, benefits, leading to high turnover and lower quality of care. The American Families Plan will ensure a $15 minimum wage for early childhood educators. Those with comparable qualifications to elementary school teachers will receive comparable compensation and benefits. And, the American Families Plan will ensure educators receive job-embedded coaching and professional development, along with additional training opportunities.
Paid family and medical leave supports workers and families and is a critical investment in the strength and equity of our economy. However, many rural workers lack access to paid family and medical leave programs, particularly low-wage workers. According to one nation-wide survey, over fifty percent of non-metro (including rural) workers said they would very likely face hardship if they had to take a few months of unpaid time off work, compared to 40 percent of metro area workers. Furthermore, many small rural businesses struggle to compete for and retain talent compared to urban areas. These businesses often cannot afford to provide workplace supports like paid family and medical leave. Rural areas are also more likely to have older populations, increasing the need for both medical and caregiving leave. One study found that California’s paid leave program accounted for an 11-percent relative decline in elderly nursing home usage, saving costs for both the state and families.
President Biden’s American Families Plan will:
Create a national comprehensive paid family and medical leave program. The program will ensure workers receive partial wage replacement to take time to bond with a new child, care for a seriously ill loved one, deal with a loved one’s military deployment, find safety from sexual assault, stalking, or domestic violence, heal from their own serious illness, or take time to deal with the death of a loved one. It will guarantee twelve weeks of paid parental, family, and personal illness/safe leave by year 10 of the program, and also ensure workers get three days of bereavement leave per year starting in year one. The program will provide workers up to $4,000 a month, with a minimum of two-thirds of average weekly wages replaced, rising to 80 percent for the lowest wage workers. We estimate this program will cost $225 billion over a decade.
With higher child poverty rates and longer distances to grocery stores, accessing nutritious food can be challenging for families in rural areas. Eighty-six percent of counties with high child food insecurity are rural, and children in rural areas are 25 percent more likely to be obese than those in urban areas. To foster positive long-term health outcomes through nutrition security, President Biden’s American Families Plan will:
Expand summer EBT to all eligible children nationwide. The Summer EBT Demonstrations help low-income families with children eligible for free- and reduced-price meals during the school year purchase food during the summer. The American Families Plan builds on the American Rescue Plan’s support for Summer Pandemic-EBT by making the successful program permanent and available to all 29 million children receiving free- and reduced-price meals. Research shows that this program decreases food insecurity among children and leads to positive changes in nutritional outcomes.
Expand school meal programs. Currently, just 70 percent of eligible schools have adopted Community Eligibility Provision (CEP), which allows high-poverty schools to provide meals free of charge to all of their students—breaking down barriers for students who may be eligible for school meals but may not apply for them due to stigma or not fully understanding the application process. The President’s plan will allow more schools in high poverty districts to offer meals free of charge to all of their students by reimbursing a higher percentage of meals at the free reimbursement rate through CEP. Additionally, the plan will target elementary schools by lowering the threshold for CEP eligibility for elementary schools. The plan will also expand direct certification to automatically enroll more students for school meals based on Medicaid and Supplemental Security Income data. This will especially help rural schools, which often have limited administrative capacity for food purchasing and accounting.
Launch a healthy foods incentive demonstration to further improve the nutrition standards of school meals and support the development of healthy lifestyles throughout the school environment.
Tax Cuts for America’s Families and Workers
While the American Rescue Plan provided meaningful relief to hundreds of millions of Americans, that was just a first step. Now is the time to build back better, to help families and workers who for too long have felt the squeeze of stagnating wages and an ever-increasing cost-of-living. Direct assistance to families in the form of tax credits paid on a regular basis lifts children and families out of poverty, makes it easier for families to make ends meet, and boosts the academic and economic performance of children over time. President Biden’s American Families Plan will:
Extend expanded ACA premiums tax credits in the American Rescue Plan. Health care should be a right, not a privilege, and Americans facing illness should never have to worry about how they are going to pay for their treatment. No one should face a choice between buying life-saving medications or putting food on the table. President Biden has a plan to build on the Affordable Care Act and lower prescription drug costs for everyone by letting Medicare negotiate prices, reducing health insurance premiums and deductibles for those who buy coverage on their own, creating a public option and the option for people to enroll in Medicare at age 60, and closing the Medicaid coverage gap to help millions of Americans gain health insurance. The American Families Plan will build on the American Rescue Plan and continue our work to make health care more affordable. The biggest improvement in health care affordability since the Affordable Care Act, the American Rescue Plan provided two years of lower health insurance premiums for those who buy coverage on their own. With those changes, more than three in four uninsured people living in rural areas are now eligible for low-cost health care, and more than four in five current HealthCare.gov enrollees in rural counties are eligible for low-cost health care. The American Families Plan will make a $200 billion investment to make those premium reductions permanent. As a result, nine million people will save hundreds of dollars per year on their premiums, and four million uninsured people will gain coverage. The Families Plan will also invest in maternal health and support the families of veterans receiving health care services.
Extend the Child Tax Credit (CTC) increases in the American Rescue Plan through 2025 and make the CTC permanently fully refundable. Rural child poverty rates are higher than the national average, and more than 200 rural counties qualify as “persistent-poverty counties,” meaning they have experienced poverty rates of 20 percent or higher for at least 30 years. The President is calling for extending the Child Tax Credit expansion first enacted in the American Rescue Plan, which increases the Child Tax Credit from $2,000 per child to $3,000 per child for 6-year-olds and above and $3,600 per child for children under 6. It also makes 17-year-olds eligible for the first time and makes the credit fully refundable, meaning that the nearly half of low-income rural families that historically did not qualify for the full credit because they earned too little, can now receive the same credit as middle-income families. If extended, this would be the single largest contributor to this plan’s historic impact of lifting a projected 620,000 children in non-metro areas out of poverty in 2022 and cutting rural child poverty in half.
Permanently increase tax credits to support families with child care needs. To help even more families, President Biden is calling on Congress to make permanent the temporary expansion of the Child and Dependent Care Tax Credit (CDCTC) enacted in the American Rescue Plan. Families will get back as a tax credit as much as half of their spending on child care for children under age 13, so that they can receive a total of up to $4,000 for one child or $8,000 for two or more children. Making the American Rescue Plan expansion of CDCTC permanent will also ensure the credit will continue to be fully refundable, making it more equitable by allowing low-income working families to receive the full value of the credit towards their eligible child care expenses regardless of how much they owe in taxes.
Make the Earned Income Tax Credit (EITC) expansion for childless workers permanent. President Biden believes our tax code should reward work and not wealth. And that means rewarding people who work hard every day at modest wages to provide their communities with essential services. Before this year, the federal tax code taxed low-wage childless workers into poverty or deeper into poverty — the only group of workers treated this way. The American Rescue Plan addressed this problem by roughly tripling the EITC for childless workers, benefitting 17 million low-wage workers, many of whom are essential workers including cashiers, cooks, delivery drivers, food preparation workers, and childcare providers. For example, a childless worker who works 30 hours per week at $9 per hour earns income that, after taxes, leaves them below the federal poverty line. By increasing her credit to more than $1,100, EITC expansion helps pull such workers out of poverty. The President is calling on Congress to make this expansion permanent. All told, the expansion will directly benefit more than one in five rural workers without children.
To view this fact sheet in your browser, click here.
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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