Tag Archives: SOTU 2023

Biden Administration, Economic Policies, Economy, Federal Budget, Government spending, Infrastructure, Joe Biden, President Joe Biden

Dueling Economic Agendas: Biden, Democrats Blast Republicans

February 16, 2023 krubin

During the State of the Union address, President Joe Biden laid out a plan to continue to grow the economy in a stable, sustainable way, so that all Americans could benefit. Republicans, meanwhile, are intent on policies that would add $3 trillion to the national debt while hurting seniors, the middle class, working families. © Karen Rubin/news-photos-features.com via MSNBC.

Further evidence that President Joe Biden’s economic plan – essentially building the economy from the bottom up and the middle out, and creating longterm, sustainable, stable growth – is working. Despite the manufactured hysteria over inflation and impending recession, the data shows otherwise – in terms of record 12 million jobs created, lowest unemployment in 50 years, real increase in wages.

Biden is also able to show progress in slowing inflation – which has been much more crippling throughout the world – and has been able to demonstrate that while his economic policies will address the national debt (a record reduction in the budget deficit), Republicans’ agenda would worsen the national debt (largely caused by the Trump/GOP tax plan that reduced taxes on the wealthiest individuals and corporations, and which added $7.4 trillion, or 25% of the national debt, in the four-year term). The Republican plan would actually add $3 trillion MORE to the national debt.

President Biden, commenting on the January CPI Report, said:

“Inflation in America is continuing to come down, which is good news for families and businesses across the country. Today’s data confirm that annual inflation has fallen for seven straight months. Inflation for food at the grocery store came down again last month. Gas prices are down about $1.60 from their peak last year. And real wages for working Americans are up over the last seven months, delivering welcome breathing room for American families. We are seeing this progress even as unemployment remains at its lowest level since 1969 and job growth remains resilient.”

“There is still more work to do as we make this transition to more steady, stable growth, and there could be setbacks along the way. That is why my unwavering focus is on continuing to lower costs for families, rebuild our supply chains, and invest in America. Right now, because of the Inflation Reduction Act we passed last year, we are lowering prescription drug costs, health care costs, and home energy costs for tens of millions of Americans all while lowering our deficits. My administration is eliminating junk fees which make it harder for American families to make ends meet at the end of the month. And we are creating manufacturing jobs all across the country, which will lower costs and rebuild our supply chains.”

“Unfortunately, many of my Republican friends in Congress seem intent on taking us in the opposite direction. They have proposed repealing the Inflation Reduction Act, which would make inflation worse, shower billions of dollars on Big Pharma, and increase the deficit. They are threatening to raise costs for seniors by threatening to cut Medicare and Social Security, and other critical programs that American seniors and families count on. And some are threatening to default on the full faith and credit of the U.S., which would raise costs and create economic chaos. I will stand firmly against any effort to make inflation worse and increase costs for families. Today’s data reinforces that we have made historic progress and are on the right track, and now we need to finish the job. “

The Congressional Republican Agenda to Increase the Debt by Over $3 Trillion

Congressional Republican leaders insist that the national debt is among our nation’s greatest challenges, and reducing it is among their highest priorities. In fact, they claim that reducing the debt is so urgent it warrants endangering the entire U.S. economy through debt limit brinksmanship. But their legislative agenda to date points in a very different direction—with proposals that would increase the debt by over $3 trillion.

The first bill passed by the new Republican House majority increased the debt by $114 billion by allowing wealthy people and corporations to continue to cheat on their taxes.
Congressional Republicans proposed repealing—and are even running ads attacking—reforms President Biden signed to lower prescription drug costs. Repealing these policies would increase the amount of money Medicare pays Big Pharma, raise costs for seniors, and add $159 billion to the debt.
House Republicans have advocated and proposed repealing tax increases on large corporations that President Biden has signed into law, adding $296 billion to the debt.
House Republican leaders have also committed to extend the expiring Trump tax cuts, a $2.7 trillion debt increase that would give the top 0.1% (with incomes over $4 million per year) a $175,000 annual tax cut, over 2.5 times a typical family’s annual income.

Grover Norquist, President of Americans for Tax Reform, exposed the political logic of Congressional Republicans’ fiscal hypocrisy. He told Republicans their focus should be “not the deficit” after all: it’s to shift public discussion to cutting spending, paving the way for more tax cuts for the wealthy.

That trickle-down economic theory has never worked. President Trump and President Bush’s tax cuts added trillions to the debt and failed to deliver their promised benefits for the economy or American workers. And taking revenues—and even savings from cutting corporate subsidies—off the table means Congressional Republicans consistently propose deep cuts to programs seniors and middle-class and working families count on.

That’s why the American people deserve to see Congressional Republicans’ full and detailed budget plan and compare it with the President’s Budget plan to invest in America, bring down costs for families, protect and strengthen Social Security and Medicare, and reduce the deficit, which he will release March 9.

Congressional Republicans’ Commitment to Debt Increases

The fiscal consequences of the debt increases Congressional Republicans have put at the top of their agenda are stark. After a decade, these policies, if enacted, would add over $3 trillion to the debt (accounting for debt service costs), increasing debt as a share of the economy by almost 10 percentage points.
Congressional Republicans’ debt increases include:

The Tax Cheats Protection Act: House Republicans’ first bill in the new Congress would add $114 billion to the Federal debt by repealing President Biden’s legislation that cracks down on wealthy tax cheats. While working people pay 99% of taxes on their income from wages and salaries, the top 1% hides about 20% of their income from tax, including by funneling it through offshore accounts and tax havens that do not report earnings. President Biden passed a law to make our tax system fairer by cracking down on wealthy tax cheats, while protecting middle-class taxpayers and small businesses and improving taxpayer service. But 221 House Republicans voted to enable tax fraud by wealthy Americans and large corporations.

Increase Spending With a Handout to Big Pharma: House Republicans have introduced a bill to repeal the entire Inflation Reduction Act (IRA), including the reforms President Biden signed into law to lower prescription drug costs. Congressional Republicans and Big Pharma have launched a concerted attack on the IRA’s prescription drug reforms, advocating to increase both Federal spending and seniors’ costs to increase Big Pharma’s profits. Thanks to the new prescription drug law, Medicare will finally be able to negotiate drug prices, and drug companies will pay rebates to Medicare if they try to hike their prices faster than the rate of inflation. Congressional Republicans want to repeal these policies, giving a $159 billion handout to Big Pharma, raising costs for seniors, and driving up the Federal debt.

Enrich Multi-Billion Dollar Corporations: In 2020, 55 of the largest, most profitable corporations paid $0 in taxes. The President signed into law legislation to level the playing field for companies and small businesses that are already paying their fair share in taxes. Under his corporate minimum tax, the largest, most profitable corporations—those with over $1 billion in profits—have to pay a 15% minimum tax on the profits they report to their shareholders. But House Republicans—through their Inflation Reduction Act repeal bill and other statements—have made clear that they want to enrich large corporations that don’t pay their fair share. That would add $222 billion to the debt.

Increase the Tax Subsidy for Stock Buybacks: President Biden signed into law a surcharge on corporate stock buybacks, which reduces the differential tax treatment between buybacks and dividends and encourages businesses to invest in their growth and productivity as opposed to paying out corporate executives or funneling tax-preferred profits to foreign shareholders. The President in his State of the Union address proposed quadrupling the stock buybacks tax to 4% to address the continued tax advantage for buybacks and encourage long-term investment over giveaways to executives. House Republicans instead want to repeal the stock buybacks tax and let corporations continue to funnel tax-preferred profits to shareholders instead of investing in productivity and the broader economy. That would add $74 billion to the Federal debt.

Extend President Trump’s Unpaid-for Tax Giveaway to the Wealthy and Large Corporations: President Trump and Congressional Republicans deliberately sunset portions of their tax giveaway to the wealthy and large corporations. They did this to conceal how much their plan added to the debt as well as how large the tax breaks were for multi-millionaires and large corporations. Now, House Republican Leadership has made clear that extending President Trump’s tax giveaway to the wealthy and large corporations is one of their top priorities. An analysis by the Tax Policy Center found that doing so would mean an average tax cut of $175,000 for the top 0.1%—Americans making more than $4 million per year. That average tax cut is more than 2.5 times a typical family’s annual income. Meanwhile, extending the expiring Trump tax cuts would add $2.7 trillion to the Federal debt over 10 years.

The President supports a fiscally responsible approach to continuing current tax policies for people making less than $400,000 per year, and opposes any tax increase for this group. Meanwhile, Congressional Republicans—including the more than three quarters of them who are signatories to Grover Norquist’s tax pledge—have made clear they will oppose paying for middle-class tax cuts by raising taxes on the wealthy and large corporations.

Even Without a Budget, Congressional Republicans Are Already Showing Who Will Pay the Price

The proposals Congressional Republicans have put forward show that, even as they commit to massive tax cuts for the wealthy and large corporations, they are more than ready to raise taxes on middle-class and working families. The House Republican IRA repeal bill would cut premium tax credits that are helping an estimated 14.5 million people pay for health insurance. And the House Budget Committee last week doubled down on eliminating Affordable Care Act premium tax credits for middle-income people with high health insurance premiums: a tax increase of $7,600 per year for a typical 62-year old earning $55,000.

In addition, some Congressional Republicans continue to push a national retail sales tax bill that would repeal most existing taxes and impose a new 30% sales tax on American families. The legislation would increase debt by trillions—and cut taxes for a couple making a million dollars a year by more than $200,000—and at the same time would raise taxes by at least $7,000 for a retired couple with $60,000 in Social Security income and at least $6,000 for a single mom making $38,000, a recent analysis found.

The bottom line is: having committed to over $3 trillion in debt increases and also insisted they are committed to reducing the debt, Congressional Republicans owe the American public a complete and transparent accounting of who will foot the bill. Will it be middle-class and working families, seniors, students, or all of the above?

House Republican agenda amounts to a death panel for Medicare and Social Security:

The contrast in agendas for America between President Joe Biden and the Democrats and the Congressional Republicans could not be more stark.

While President Biden, in his State of the Union address, described his plans for building on the historic job creation he has achieved, making more progress against inflation, reducing the deficit by making the wealthy and big corporations pay their fair share, and protecting Medicare and Social Security benefits from cuts, in contrast, House Republicans opened the week by announcing the latest in a long succession of attempts to undermine Medicare and Social Security.

Bloomberg reports that as part of a ransom demand for not triggering a financial meltdown, top House Republicans want an agreement that both earned benefits programs are put on track for cuts.

As The Washington Post reported in late January, House Republicans have continuously pressed for slashing Medicare and Social Security benefits in exchange for not actively harming the American economy with the first debt default in our history.

House Republicans have repeatedly indicated they would do so in the new Congress, and on the campaign trail.

Republicans have also introduced legislation to repeal the Inflation Reduction Act, which would be one of the biggest Medicare benefit cuts in history, depriving seniors of lower insulin costs, the $2,000 cap on out of pocket expenses for prescription drugs, and Medicare’s new ability to negotiate lower drug costs.

Today’s news is even more confirmation that House Republicans are taking direct aim at programs that are critical to the middle class, even as they vote for tax giveaways to the rich that would manage to increase taxes on working families while raising the deficit at the same time, the White House stated.

“With the President poised to announce new plans to keep making our economy works from the bottom up and the middle out – not the top down – House Republicans are dead-set on the opposite,” said White House spokesperson Andrew Bates. “They’re opening the week unveiling their latest in a long line of ultimatums about how they’ll act to kill jobs, businesses, and retirement accounts if they can’t cut Medicare and Social Security benefits. Meanwhile, they’re voting to worsen the deficit with tax welfare for the rich and big corporations. Think about that: they’re targeting the Medicare and Social Security benefits that middle class families pay in to earn their whole lives, then turning around and giving tax handouts to big corporations. The American people want more jobs and lower costs, not a death panel for Medicare and Social Security.”

“While President Biden shows the American people his plan to build on the unprecedented deficit reduction his leadership has already delivered, by having the richest taxpayers and big corporations pay their fair share and lowering prescription drug prices, House Republicans’ only plan is to make the deficit skyrocket by over $3 trillion with unaffordable tax giveaways to wealthy special interests,” stated White House spokesperson Andrew Bates. “They’ve even proposed raiding Medicare so that the ultra-rich can enjoy new tax welfare. Meanwhile, House Republicans are threatening to actively throw our economy into a tailspin with a default – which they have a non-negotiable, Constitutional duty to prevent – unless they can further cut Social Security, Medicare and Medicaid. It’s utterly backwards. The President is delivering on his commitment to build an economy that grows from the bottom up and the middle out – not from the top down. The House GOP seems determined to pull the American economy in the opposite direction, increasing taxes on working families while giving $3 trillion in new handouts for the rich.”

The chart below is based on the record:

Policy	10-Year Deficit Increase
Republican House-passed bill to make it easier for billionaires to cheat on their taxes	$114 billion
Republican Proposals to repeal Inflation Reduction Act’s prescription drug savings, which will raise costs for seniors and Medicare and increase federal spending	$159 billion
Republican Proposals to repeal the Inflation Reduction Act’s 15% minimum tax on corporations with profits over $1 billion	$222 billion
Republican Proposals to extend the Trump tax cuts: an average tax cut of $175,000 for the top 0.1%	$2.7 trillion
Deficit increases from Republican proposals to date	Over $3 trillion

Congressional Republicans keep calling for earned benefits on the one hand, but more tax giveaways for the rich on the other

After President Biden put Republicans on the defensive over their long-public intentions to slash Medicare and Social Security benefits, a continuing list of congressional Republicans ranging from Ron Johnson last week to Senator Mike Rounds yesterday, keep proving his point.

Whether it’s a large number of House Republicans and Rick Scott pushing to repeal the Inflation Reduction Act in what would be one of the worst Medicare benefit cuts of all time, or the Republican Study Committee proposing benefit cuts and the privatization of Social Security of last year, the receipts are undeniable. For months, congressional Republicans have indicated they would even use the threat of a catastrophic default to cut Medicare and Social Security benefits.

Republicans in Congress justify these intentions under the guise of fiscal responsibility. However, at the same time, they are advocating for enormous tax giveaways to rich special interests that, combined, would add over $3 trillion to the debt. Those two positions are irreconcilable.

The first vote the Republican-controlled House took was to help wealthy individuals and multinational corporations worsen inflation by cheating on their taxes. They broadly support renewing the Trump tax giveaways for the rich. And in addition to being a Medicare benefit cut, repealing the Inflation Reduction Act would at the same time be more tax welfare for the rich and a giant windfall for Big Pharma. And that’s just the tip of the iceberg.

“It’s irreconcilable to support Medicare and Social Security benefit cuts in the name of supposed ‘fiscal responsibility,’ while at the same time adding $3 trillion to the national debt with a seemingly endless gravy train for rich special interests,” said White House spokesperson Andrew Bates. “Prioritizing tax giveaways for the wealthy and specific handouts for Big Pharma over the Medicare and Social Security benefits that middle class families pay to earn throughout their lives is a recipe for making our economy work from the top-down. The last thing that Americans who’ve felt invisible want is cuts to lifeline programs in exchange for permanent trickle-down economics.”

Biden Administration, Economic Development, Infrastructure, News & Photo Features

White House Highlights Infrastructure Progress in Every Corner of the Country: State-by-State Updates

February 8, 2023 krubin

During his State of the Union address, President Joe Biden touted the benefits of the once-in-a-generation Bipartisan Infrastructure Act that will fund tens of thousands of initiatives across the country – including places where Republicans opposed the measure but are happy to take credit for the progress (“I still get asked to fund the projects in those districts as well, but don’t worry. I promised I’d be a President for all Americans. We’ll fund these projects. And I’ll see you at the groundbreaking.” Biden said that the materials would be “Made in America” and support millions of well-paying union jobs, like the manufacture of electric buses for public transit fleets, on display in New York City © Karen Rubin/news-photos-features.com

Over one year ago, President Biden signed the Bipartisan Infrastructure Law – a once-in-a-generation investment in our nation’s infrastructure and competitiveness. While “infrastructure week” was a punchline under his predecessor, President Biden is delivering an “infrastructure decade” that is producing real results to change people’s lives for the better, creating good-paying jobs, and boosting American manufacturing.

In his first State of the Union Address in 2022, President Biden highlighted how our historic federal investments in infrastructure would create a visible impact in the lives of American families by committing to start repair on 65,000 miles of roads and 1,500 bridges. The President also committed to making rapid progress across every facet of the law.

Since the last State of the Union, the Administration has surpassed those ambitious goals. This includes launching over 3,700 bridge repair and replacement projects across the country, beginning repair of over 69,000 miles of roadway, awarding funds for over 3,000 new clean transit and school buses, increasing enrollment in the Affordable Connectivity Program to over 16 million households, and approving state plans for water funding, EV charging networks and high-speed internet deployment.

Overall, the Bipartisan Infrastructure Law represents historic progress, as the largest and most significant investment in:

Rebuilding our roads and bridges since President Eisenhower’s Interstate Highway System;
Public transit in American history and an historic investment to make public transportation accessible;
Passenger rail since Amtrak’s inception, 50 years ago;
Clean water infrastructure;
Affordable, high-speed internet;
Tackling legacy pollution and advancing environmental justice;
Upgrading the power grid to transmit more clean energy and withstand extreme weather;
Increasing our infrastructure’s resilience against the impacts of climate change, extreme weather events, and cyber-attacks;
Replacing dirty diesel buses with clean, electric buses across school bus and transit fleets; and,
A national network of EV chargers in the United States and largest investment in domestic manufacturing of batteries and the critical minerals that power them.

These once-in-a-generation investments are positioning the United States to win the 21st century. That is why the Biden-Harris Administration has been laser-focused on implementing the law.

To date, the Administration has announced nearly $200 billion in funding and over 20,000 projects or awards, which are highlighted in a new map showcasing all projects and funding awards in all 50 states and territories. These awards and projects touch over 4,500 communities.
In recent weeks, the President has announced awards for regionally or nationally-significant projects including over $2 billion to upgrade some our nation’s most economically significant bridges and over $1.2 billion in Mega grants. These infrastructure investments will create good-paying jobs – including union jobs and jobs that do not require a college degree. The projects will grow the economy, strengthen supply chains, improve mobility for residents, and make our transportation systems safer for all users. To highlight that progress, the White House unveiled an illustrative map of signature projects on build.gov.
The Biden-Harris Administration is committed to making the funding opportunities from the Bipartisan Infrastructure Law both accessible and transparent, so communities across America know what to apply for, who to contact, and how to get ready to rebuild. Our goal is to help state, local, Tribal and territorial governments navigate, access, and deploy infrastructure resources that will build a better America. As such, the White House today released an updated calendar of notices of funding opportunity expected throughout the year.

“Made in America”

Indeed, President Biden devoted the largest portion of his State of the Union address to infrastructure and jobs:

We used to be number one in the world in infrastructure. We’ve sunk to 13th in the world. The United States of America — 13th in the world in infrastructure, modern infrastructure.

But now we’re coming back because we came together and passed the Bipartisan Infrastructure Law — the largest investment in infrastructure since President Eisenhower’s Interstate Highway System. (Applause.)

Folks, already we’ve funded over 20,000 projects, including major airports from Boston to Atlanta to Portland — projects that are going to put thousands of people to work rebuilding our highways, our bridges, our railroads, our tunnels, ports, airports, clean water, high-speed Internet all across America — urban, rural, Tribal.

And, folks, we’re just getting started. We’re just getting started. (Applause.)

And I mean this sincerely: I want to thank my Republican friends who voted for the law. And my Republican friends who voted against it as well — but I’m still — I still get asked to fund the projects in those districts as well, but don’t worry. I promised I’d be a President for all Americans. We’ll fund these projects. And I’ll see you at the groundbreaking. (Applause.)

Look, this law — this law will further unite all of America.

Projects like the Brent Spence Bridge in Kentucky over the Ohio River. Built 60 years ago. Badly in need of repairs. One of the nation’s most congested freight routes, carrying $2 billion worth of freight every single day across the Ohio River.

And, folks, we’ve been talking about fixing it for decades, but we’re really finally going to get it done….And that’s what we’re also building — we’re building back pride.

Look, we’re also replacing poisonous lead pipes that go into 10 million homes in America, 400,000 schools and childcare centers so every child in America — every child in American can drink the water, instead of having permanent damage to their brain. (Applause.)

Look, we’re making sure that every community in America has access to affordable, high-speed Internet…
And when we do these projects — and, again, I get criticized about this, but I make no excuses for it — we’re going to buy American. (Applause.) ..and it’s totally consistent with international trade rules. Buy American has been the law since 1933. But for too long, past administrations — Democrat and Republican — have fought to get around it. Not anymore.

Tonight, I’m also announcing new standards to require all construction materials used in federal infrastructure projects to be made in America. (Applause.) Made in America. I mean it. (Applause.) Lumber, glass, drywall, fiber-optic cable.

And on my watch, American roads, bridges, and American highways are going to be made with American products as well.

Folks, my economic plan is about investing in places and people that have been forgotten. So many of you listening tonight, I know you feel it. So many of you felt like you’ve just simply been forgotten. Amid the economic upheaval of the past four decades, too many people have been left behind and treated like they’re invisible.

Maybe that’s you, watching from home. You remember the jobs that went away. You remember them, don’t you?

The folks at home remember them. You wonder whether the path even exists anymore for your children to get ahead without having to move away…That’s why we’re building an economy where no one is left behind.

Jobs are coming back, pride is coming back because of choices we made in the last several years.

You know, this is, in my view, a blue-collar blueprint to rebuild America and make a real difference in your lives at home. (Applause.)

Today, the White House Infrastructure Implementation Team also released new state-by-state fact sheets which outline the progress in all 50 states, DC and the territories as of January 13, 2023:

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

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

SOTU Preview: Biden Offers Plan to Build on Economic Success

February 7, 2023 krubin

What a difference a year makes! The atmosphere for President Joe Biden’s State of the Union Address could not be more different from 2022, when Democrats controlled both houses of Congress. But his message, continuing to build on the progress of his Unity Agenda, repeats his theme to work in a bipartisan fashion for the good of the American people © Karen Rubin/news-photos-features.com via C-Span.

It is truly shocking to hear “poll” results where the majority of people think President Biden has done nothing, that the economy is weak, that no new jobs have been created. Beyond absurd – you have to wonder about who was polled, how the polling was done, or what rock these people have been under, or if they are permanently wired to Fox Fake News. This preview of the State of the Union Address providing a Fact Sheet on the Biden Administration’s economic record, comes from the White House:

President Biden has long believed that we must build the economy from the bottom up and middle out, not the top down. As the President says, when the middle class does well, the poor have a ladder up and the wealthy still do very well. He believes the best way to grow the economy, create good-paying jobs, and lower costs for families is by promoting workers, investing in America and its people, making the economy more competitive, and reforming the tax code to reward work and not wealth. Our progress over the last two years shows that his economic strategy is working.

The state of the economy is strong. In his State of the Union address, President Biden will highlight the historic progress we have made to bring the economy back from the pandemic and create more jobs in a two-year period than under any other president on record. He will discuss progress lowering costs and providing more breathing room for families, including cutting prescription drug costs, health insurance premiums, and energy bills, while driving the uninsured rate to historic lows. He will outline the manufacturing boom across the country—in infrastructure, semi-conductors, and clean energy—that is strengthening parts of the country left behind and creating good jobs, including for workers without college degrees.

And, he will emphasize that his economic strategy has been a fiscally responsible one. President Biden’s predecessor passed a nearly $2 trillion unpaid for tax cut with benefits skewed to the wealthy and large corporations, and the deficit went up every single year under his watch. Under President Biden, the deficit has fallen by $1.7 trillion, and his reforms to take on Big Pharma, lower prescription drug costs, and make the wealthy and large corporations pay their fair share will reduce the deficit by hundreds of billions more.

President Biden knows that the work to build an economy from the bottom up and middle out is far from done. He will say that we need to build on this work to continue growing our economy and lowering costs. He will discuss the work to come to implement his historic investment agenda in a way that benefits all Americans. And, the President will preview the budget he will send to Congress on March 9, which will build on the historic economic progress of the past two years by continuing to invest in America and its people, continuing to lower costs for families—from child care to housing to college to health care—protecting and strengthening Social Security and Medicare, and reducing the deficit through additional reforms to ensure the wealthy and largest corporations pay their fair share.

Historic Progress to Create Jobs, Promote Workers, and Transition to Steady and Stable Growth

When President Biden took office, the economy was in crisis, millions were out of work, and Main Streets were shuttered. In two years, the President has overseen a historic economy recovery and laid the foundation for steady and stable growth in the years to come.

A historic, equitable economic recovery. President Biden’s economic strategy led to a historic recovery with tangible benefits for workers and families. Since President Biden took office, the economy has created more than 12 million jobs—including more than 800,000 manufacturing jobs—and the unemployment rate is at a 54-year low, including near record lows for Black workers. The unemployment rate for Hispanic workers hit a record low last year. The past two years were also the best two years for new small business applications on record. None of this progress was pre-ordained. Before President Biden signed his Rescue Plan into law, experts predicted it would take far longer to create this many jobs. And few—if any—experts predicted it would be possible to get the unemployment rate down to a level last seen in 1969. In fact, before the Rescue Plan passed, the Congressional Budget Office projected the unemployment rate in the first quarter of 2023 would be 4.8%, rather than its current level of 3.4%.

More breathing room and economic security for families. This historic jobs recovery, along with Biden-Harris Administration policies designed to help workers and families, has left families more economically secure than before the pandemic. Compared to pre-pandemic levels, households are now less likely to be delinquent on their credit card bills and mortgages, and more likely to have health insurance. They are facing fewer evictions and foreclosures than there were before the pandemic, and bankruptcy rates are lower as well. This economic security is giving families peace of mind and breathing room that they didn’t have before the pandemic. Child poverty also fell to a historic low in 2021, and the President will call on Congress to continue these gains through the expanded Child Tax Credit, even as he has taken action to lift nearly 1 million children out of poverty by modernizing nutrition benefits.

Progress on transitioning to steady, stable growth with lower inflation. In the wake of unprecedented economic disruption from a historic pandemic, inflation has been a challenge all over the globe. Last spring, President Biden set the goal of transitioning our economy to lower inflation, while maintaining a resilient job market for American workers. Now, annual inflation has fallen for six months straight, driven in large part by a roughly $1.50 decline in gas prices compared to last summer. Over the second half of 2022, three-month core inflation fell from nearly 8% at an annualized rate to 3% at an annualized rate—at the same time that the unemployment remained at or near 50-year lows. As a result of the progress on inflation and the resilience of the job market, wages adjusted for inflation are higher than they were seven months ago. While there is more work to do to bring inflation down and lower costs for families—and there may be setbacks along the way—the past six months have marked significant progress toward the President’s goal of bringing down inflation without giving up the economic progress we’ve made.

Manufacturing Boom Across the Country and Historic Investments in Infrastructure

Even before the pandemic, the middle class was hollowed out. Manufacturing jobs moved overseas and factories closed down. The President believes that the United States can lead the world in manufacturing again. His economic plan has done just that—generate a manufacturing boom across the country and build an economy where no one is left behind. The President’s economic plan is stimulating new factories and manufacturing lines and creating good-paying jobs that don’t require a four-year degree. His plan includes the most significant upgrade to our nation’s infrastructure in generations—an investment larger than FDR’s investment Rural Electrification and Eisenhower’s efforts to build the Interstate Highway system. It includes the most significant clean energy plan ever, transitioning the clean energy economy and lowering households’ energy costs. And, it includes the most substantial investment in science, innovation, and industrial strategy in over 50 years.

In just the two years since President Biden took office, we have spurred more than $700 billion in announced private investment in manufacturing, utilities, and energy from more than 200 companies in all 50 states. Much of this investment is driven by the semiconductor, energy, electric vehicles and batteries, and other cutting-edge sectors.

Ensuring President Biden’s agenda creates a future made in America. Building on the historic investment agenda the President has signed into law, President Biden is ensuring that our historic infrastructure investments use materials made in America. For decades, Buy America laws focused on iron and steel and only covered certain federally funded infrastructure projects. This giant loophole meant projects could be built with other materials sourced from anywhere in the world. The Biden-Harris Administration is working to close this loophole and implement new standards, once and for all, so materials for roads and bridges, airports, transit, rail, water, high-speed internet, and clean energy infrastructure are made in America and support American jobs.

The President will announce in the State of the Union that he is issuing proposed guidance to ensure construction materials from copper and aluminum to fiber optic cable, lumber, and drywall, are made in America. Once finalized, these standards will apply to virtually all infrastructure spending supported by Federal financial assistance—not simply roads and bridges, but also buildings, water infrastructure and high-speed internet, providing consistency for companies and state and local governments to apply the standards and a strong federal government-wide demand signal.

These steps complement the Administration’s implementation of the most robust updates in nearly 70 years to the Buy American Act for federal procurement. Those updates are helping to ensure that taxpayers’ dollars support American manufacturing, boost resiliency in critical industries, and create good-paying jobs right here at home. The Buy American rule increased the percentage value of component parts manufactured in the US from 55% to 60% this past fall as the first step toward increasing that value to 75%.

Lowering Health Care Costs for Families

The President knows what it’s like to stare at the ceiling, worried about paying for prescriptions or health care. He believes that every American has a right to the peace of mind that comes with knowing they have access to affordable, quality health care. President Biden passed legislation to lower health care and prescription drug costs for American families, giving families more breathing room. Tomorrow, he will discuss the historic progress we have made on lowering health care costs under his watch, including steps to strengthen Medicare, Medicaid, and the Affordable Care Act (ACA), and steps we must take to build on that progress and give more families the peace of mind of affordable prescriptions and health care.

$800 lower health care premiums. A record-setting 16.3 million people signed up for ACA coverage this year, and the national uninsured rate hit an all-time low last year. That’s thanks in large part to President Biden and Democrats in Congress’ work to lower premiums for ACA coverage by an average of $800 per person per year—along with President Biden’s actions to quadruple consumer assistance, increase outreach, and close the “family glitch” loophole that blocked many children and spouses from affordable coverage. Tomorrow, the President will call on Congress to make these savings for American families permanent, so we can continue our work to make health care a right, not a privilege.

60 million Medicare beneficiaries will be protected from skyrocketing drug costs. President Biden took on Big Pharma—and won. Thanks to the new prescription drug law, Medicare will be able to negotiate drug prices and cap out-of-pocket pharmacy costs at $2,000 per year under Part D, and drug companies will pay rebates to Medicare if they try to hike their prices faster than the rate of inflation. For the last six weeks, seniors across the country have been benefiting from key drug pricing protections that are putting money back in their pockets:

$35 price cap on insulin in Medicare. Starting this year, Medicare beneficiaries will pay no more than $35 per month per insulin prescription. 1.5 million people would have each saved, on average, $500 per year had this law been in effect in 2020. The President will call on Congress to extend this commonsense, life-saving protection to all Americans, not just people with Medicare.
$0 vaccines through Medicare. More adult vaccines are now available without any co-pays under Medicare Part D thanks to the new prescription drug law. This includes the shingles vaccine, which used to cost seniors as much as $200.

1 million surprise medical bills are prevented every month. Before President Biden took office, millions of people received surprise bills for out-of-network care, costing them hundreds or thousands of dollars. The Administration is protecting millions of consumers from surprise medical bills through the implementation of the No Surprises Act, which has already protected 10 million Americans from unfair, undeserved out-of-network charges.

$3,000 in savings on hearing aids. In October 2022, over-the-counter hearing aids hit the shelves following a rule from the Food and Drug Administration. Now, millions of Americans can buy hearing aids for low to moderate hearing loss without a prescription or exam. This is anticipated to save Americans as much as $3,000 per pair, providing more breathing room for the estimated 30 million Americans with mild-to-moderate hearing loss.

39 states and the District of Columbia have expanded Medicaid coverage. Missouri, Oklahoma, and South Dakota are the most recent states to expand Medicaid to hundreds of thousands of low-income adults previously locked out of Medicaid coverage. The Administration remains committed to closing the coverage gap in the remaining 11 states, and the President will call on Congress to finish the job. In addition, the Administration also worked with over half the states and DC to extend Medicaid postpartum coverage for millions of women.

Promoting Competition

As President Biden said at last year’s State of the Union, “capitalism without competition isn’t capitalism. It’s exploitation—and it drives up prices.” Over the past year, the Administration has been delivering for the American people to lower prices, protect workers, and increase competition across the economy. In this year’s State of the Union, the President will highlight progress we need to continue to make to promote competition and protect consumers.

Cracking down on junk fees. The Consumer Financial Protection Bureau (CFPB) is lowering or eliminating the banking and credit card “junk” fees that too many Americans pay. The CFPB announced a proposal that will slash excessive credit card late fees to $8 from approximately $30, which combined with other measures could save consumers up to $9 billion a year in late fees. Last year, the CFPB also targeted overdraft and bounced check fees—making changes that will cut fees by over $1 billion a year. The Department of Transportation (DOT) also proposed a rule that would require airlines and online search sites to disclose up front any fees to choose seats including to sit next to one’s child, for baggage, and for changes or cancellations. It also published a dashboard of airline policies when flights are delayed or cancelled due to issues under the airlines’ control, leading 9 airlines to change policies to guarantee coverage of hotels and 10 airlines to guarantee coverage of meals.

The President will re-state his call on Congress to pass a Junk Fees Prevention Act to ban resort and family seating fees, eliminate unnecessary early termination fees for internet and phone services, and crack down on excessive fees and other practices that drive up ticket prices. DOT will also launch a family seating dashboard to raise awareness about airline policies and undertake a rulemaking to ban these fees.

Addressing non-compete agreements. Roughly 30 million Americans, including many low-wage workers, are covered by non-compete agreements that can stifle wage growth for American workers by making it more difficult for workers to leave for higher-paying jobs. The Federal Trade Commission released a proposed rule in January 2023 to ban non-compete clauses, which it estimates will increases wages by $300 billion annually.

Lowering ocean shipping costs. Ocean carriers increased their rates by as much as 1,000% during the pandemic. Last June, Congress passed the Ocean Shipping Reform Act heeding the President’s call in the 2022 State of the Union. This legislation will cut costs for shippers, and in turn American families, and ensure fairer treatment for exports from our farmers and ranchers.

Lowering meat prices. The Administration has taken a number of steps to increase competition in the meat and poultry markets. The Department of Agriculture (USDA) has also issued proposed regulations under the Packers & Stockyards Act to increase competition and market integrity and to prevent abuse of farmers in the poultry growing system. USDA is also using $1 billion to expand independent meat processing capacity, so the market isn’t dominated by just a few big players.

Helping consumers get the right to repair. The President believes that consumers shouldn’t be restricted by big manufacturers from repairing their own equipment—whether it’s a tractor or a smartphone. After President Biden expressed strong support for the right to repair in his Competition Executive Order, Microsoft conducted a study on the issue and made its Surface devices more easily repairable and Apple announced self-service repair for certain devices.

Improving safety and accountability in nursing homes. As the President directed in last year’s State of the Union, CMS has taken action to strengthen oversight of the worst performing nursing homes, prevent abuse and Medicare fraud, and improve families’ ability to comparison shop across nursing homes. In the coming days and months, CMS will announce new actions to increase safety and accountability at nursing homes.

Reducing the Deficit by Ensuring the Wealthy and Large Corporations Pay their Fair Share

In the last two years, the Administration cut the deficit by more than $1.7 trillion—the largest deficit reduction in American history. The President believes we need to continue that progress—and reward work, not wealth.

Since coming to office, the President has signed legislation to make the wealthy and large corporations pay their fair share and provide tax cuts for working families, while reducing the deficit. Under his plan, no one making under $400,000 per year will pay more in taxes.

Billionaire Minimum Tax. President Biden is a capitalist and believes that anyone should be able to become a millionaire or a billionaire. He also believes that it is wrong for America to have a tax code that results in America’s wealthiest households paying a lower tax rate than working families. In a typical year, billionaires pay an average tax rate of just 8%. In the State of the Union, he’ll call on Congress to pass his billionaire minimum tax. This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters.

Surcharge on corporate stock buybacks. Stock buybacks enable corporations to funnel tax-advantaged payouts to wealthy and foreign investors, instead of paying dividends that shareholders are required to pay taxes on. In addition, a number of experts have argued that CEOs—who are compensated mostly in stock—use buybacks to enrich themselves to the detriment of the long-term growth of the company. Last year, oil and gas companies made record profits and invested very little in domestic production and to keep gas prices down—instead they bought their own stock, giving all that profit to their CEOs and shareholders. President Biden signed into law a surcharge on corporate stock buyback, which reduces the differential tax treatment between buybacks and dividends and encourages businesses to invest in their growth and productivity as opposed to paying out corporate executives or funneling tax-preferred profits to foreign shareholders. In the State of the Union, the President will call for quadrupling the tax on corporate stock buybacks.

Corporate minimum tax. In 2020, 55 of the largest corporations that were profitable paid $0 in federal income tax. To end that unfairness in the tax code, President Biden signed into law a 15 percent minimum tax on the profits that large corporations—those with over $1 billion in profits—report to shareholders. This book minimum tax means that it will be harder for companies that say they’re earning a billion in profits to pay tax rates in the single digits on those profits. It also levels the playing field for companies—including small businesses—that are already paying their fair share.

Legislation to crack down on tax cheats and create a fairer tax system. Working people pay 99% of the taxes they owe on their income from wages and salaries, while the top 1 percent hides about 20% of their income from tax, including by funneling it through offshore accounts in tax havens that don’t report earnings. The President signed legislation into law that will crack down on wealthy people and large corporations that cheat on their taxes, while improving customer service for taxpayers. The legislation will not increase audit rates for families or small businesses making under $400,000 per year.

Biden Administration, Congress, Joe Biden, President Joe Biden

SOTU Preview: Biden to Outline Vision to Advance Progress on Unity Agenda in Year Ahead

February 7, 2023 krubin

This year’s State of the Union address by President Joe Biden will have a very different look, with Republican Speaker Kevin McCarthy standing in place of Nancy Pelosi, but Biden plans to continue to press for further progress on the Unity Agenda he proposed last year © Karen Rubin/news-photos-features.com via C-SPAN.

During his first State of the Union address, President Biden announced a four-part Unity Agenda focused on areas where members of both parties can come together and make additional progress for the American people: ending cancer as we know it; delivering on the sacred obligation to veterans; tackling the mental health crisis; and beating the opioid and overdose epidemic.

Over the last year, the President was proud to work with Democrats and Republicans to enact major legislation that delivers on all aspects of this four-part agenda. In his State of the Union today, the President will announce a new set of policies to continue to make progress advancing his Unity Agenda and deliver results for families across the country.

Accelerating Progress to End Cancer as We Know It Today
Cancer has touched nearly every American family, and it remains the second leading cause of death in America. To accelerate progress in the fight against cancer, last year, the President and First Lady reignited the Cancer Moonshot with the goal of cutting U.S. cancer death rates by at least half in 25 years and improving the experience of individuals, caregivers, and families living with and surviving cancer. Over the past year, the Cancer Moonshot has announced nearly 30 new federal programs, policies and resources to close the screening gap, tackle environmental exposure, decrease preventable cancers, advance cutting-edge research, support patients and caregivers, and more. More than 60 private companies, non-profits, academic institutions, and patient groups have also answered the President’s call and stepped up with new actions and collaborations. The President will call on Congress to act to end cancer as we know it, and the Cancer Moonshot will drive additional progress this year by:

Bringing America’s cancer research system into the 21st century. As we work to continue the progress we’ve made over the last year, the Administration is urging Congress to reauthorize the National Cancer Act, which 52 years ago set up the National Cancer Institute (NCI) in its current form. The reauthorization will update the nation’s cancer research and care systems to put modern American innovation fully to work to end cancer as we know it. This includes standing up clinical trial networks, creating new data systems that break down silos, and ensuring that knowledge gained through research is available to as many experts as possible, so we can find answers faster and make a difference for patients. Working with Congress, we can also lock in the strong investment in cancer research that passed in 2016 as part of the broadly bipartisan 21^st Century Cures Act, which otherwise expires this year.

Providing patient navigation support to every American facing cancer. The Biden-Harris Administration will take steps to ensure that patient navigation services – services that help guide individuals, caregivers, and families through cancer screening, diagnosis, treatment, and survivorship – are covered benefits going forward for as many people facing cancer as possible. These patient navigation services not only improve the experience for those patients and their families, they improve patient outcomes and provide value back to the health care system.

Tackling the biggest single driver of cancer deaths in this country – smoking. The Administration is preparing further action to help people avoid smoking in the first place and support Americans who want to quit. These steps could prevent as much as 30 percent of cancer deaths in this country, saving up to 130,000 American lives, annually. While we have made progress, tobacco products still hook too many young people at an early age and take control away from individual Americans to make the decision not to smoke. The Administration is working to put that control back in the hands of Americans.

During his first State of the Union address, President Biden cited the recent announcement of his plan to supercharge the Cancer Moonshot and called on Congress to fund ARPA-H, the Advanced Research Projects Agency for Health, to drive breakthroughs in cancer, Alzheimer’s, diabetes, and other diseases. Since that time, the President and Congress have stepped up together to provide ARPA-H $2.5 billion in initial investment. The President also signed into law the Inflation Reduction Act, which will lower prescription drug costs for tens of thousands of cancer patients with Medicare coverage. The Bipartisan Infrastructure Law will also help cut cancer deaths by accelerating clean-up at Superfund sites and helping states and communities replace lead pipes and service lines.

Supporting America’s Veterans and Their Families, Caregivers, and Survivors
The President believes there is no more sacred obligation than taking care of our nation’s military service members, veterans, and their families, caregivers, and survivors. On health care, education, and housing, the Administration and Congress have worked together to make progress to connect veterans and their families to needed resources. Over the past year, the Administration expanded benefits for veterans as well as their caregivers and survivors, and delivered more benefits and health care more quickly to more veterans than ever before. In 2022, VA processed an all-time record 1.7 million veteran claims, and delivered $128 billion in earned benefits to 6.1 million veterans and survivors. In the State of the Union, the President will announce his Administration plans to continue that work by:

Reducing veteran suicide. Suicide among veterans is a public health and national security crisis. Since 2010, more than 71,000 veterans have died by suicide – more than the total number of deaths from combat during the Vietnam War and operations in Iraq and Afghanistan combined. Since releasing a comprehensive strategy for reducing military and veteran suicide, both DOD and VA reported declines in suicide deaths, but much more remains to be done. This will include actions to:

Support states and territories. The Department of Veterans Affairs (VA) is working with the Departments of Health and Human Services (HHS) and Defense (DOD) to partner with 49 states and 5 territories through the Governor’s Challenge. To help facilitate this work, VA will launch a new $10 million program to provide federal resources to states, territories, Tribes and Tribal organizations to develop and implement proposals under the program.
Increase lethal means safety: In the coming year, VA will deploy new resources to improve suicide risk identification and increase lethal means safety counseling and safe storage. VA will offer additional training for the 1.3 million community providers and expand KeepItSecure, the landmark lethal means safety campaign, with new resources and materials for providers, caregivers, family members of veterans, and gun shop owners to encourage safe storage of firearms and lethal medications.
Expand outreach to justice involved veterans. Veterans who become involved in the criminal justice system may be at high risk of suicide. Through Veteran Treatment Courts and other justice outreach engagements, VA is able to provide veterans access to benefits and services that can be life-changing, and VA will accelerate hiring of veteran justice outreach professionals to expand these programs.
Expand Access to Legal Support Services. VA will build upon and expand its current 28 Medical-Legal Partnerships. Family caregivers participating in VA’s Program of Comprehensive Assistance will also be able to receive Financial and Legal Assistance later this year. VA will also award up to 75 grants under its new Legal Services for Homeless Veterans and Veterans at Risk for Homeless (LSV-H) program to provide legal services to veterans who are homeless or at risk of homelessness.

Expanding access to peer support, including mental health services. Military service increases the risk of mental health problems and other adjustment challenges for veterans. Veteran Peer Specialists are a critical asset within VA’s workforce, working across various programs to connect their fellow veterans to services, participate as members of health care teams, and provide individual and group-based peer support. Last year, VA pledged to hire an additional 280 peer specialists and is on track to meet this goal by the end of 2023. VA will increase the number of peer specialists working across VA medical centers by 350 over the next 7 years.

Ensuring access to affordable, stable housing for low-income veterans. Every veteran should have a roof over their head. The President’s upcoming budget will triple the number of extremely low-income veterans who can access the assistance they need to afford rent over the years ahead, paving the path to an entitlement for those who have served our country. The number of veterans experiencing homelessness declined by 11% between 2020 and 2022 and the United States permanently housed more than 40,000 veterans in 2022 alone.

Delivering high-quality job training for veterans and their spouses. Roughly 200,000 service members transition from the military to civilian life each year. In the coming year, DOL’s Veteran Employment and Training Service (DOL-VETS) will implement its Employment Navigator Partnership Pilot, which has already provided one-on-one career assistance to 6,500 transitioning service members and military spouses. And, the Department of Defense will use the Military Spouse Career Accelerator Pilot program, a 12-week paid fellowship program, to expand employment opportunities for eligible military spouses.

In last year’s State of the Union, the President called for Congress to pass comprehensive legislation to address military toxic exposures. In August 2022, President Biden signed the bipartisan PACT Act into law, the most significant expansion of benefits and services for toxic exposed veterans in more than 30 years. Over the last year, the Administration also took critical action to help reduce veteran suicide, including transitioning the Veterans Crisis Line to “988, press 1.” The Administration also expanded access to reproductive health services for women veterans, supported more than 2.3 million children living with wounded, ill, or injured service members through the First Lady’s Joining Forces Initiative, and implemented key measures to protect veterans from predatory for-profit colleges.

Tackling the Mental Health Crisis
Forty percent of American adults report symptoms of anxiety and depression, and the percent of children and adolescents with anxiety and depression has risen nearly thirty percent. Last year, President Biden called for additional actions to advance his Mental Health Strategy across its three objectives: support Americans by creating healthy environments; strengthening system capacity, and connecting more Americans to care. Over the last year, the Administration invested critical resources to provide mental health and substance use supports to Americans, including by expanding Certified Community Behavioral Health Clinics, investing unprecedented resources in the 988 suicide prevention hotline, and taking steps to help address the harms of social media on youth. In the State of the Union, the President will say that we will continue that work by:

Creating healthy environments. Decades of research show that coordinating prevention and recovery support across settings can pay long-term dividends. The Biden-Harris Administration will:

Protect kids online. There is compelling and growing evidence that social media and other tech platforms can be harmful to mental health, wellbeing and development. Children, adolescents, and teens are especially vulnerable to such harm. More than one-third of American teens say they use a major social media platform “almost constantly” and that they spend “too much time on social media.” Far too often, the platforms do not enforce their own terms of service with respect to minors who use their products and services. Children are also subject to the platforms’ excessive data collection vacuum, which they use to deliver sensational and harmful content and troves of paid advertising. Children also suffer from bullying, harassment, abuse, and even sexual exploitation by other users online. And platforms use manipulative design techniques embedded in their products to promote addictive and compulsive use by young people in the name of “user engagement” – all to generate more revenue. The Administration will build on the Surgeon-General’s Youth Mental Health Advisory, the Department of Health and Human Services’ new Center of Excellence on Social Media and Mental Wellness, and the recent passage of the Children and Media Research Advancement Act. Platforms and other interactive digital service providers should be required to prioritize the privacy and wellbeing of young people above profit and revenue in their product design, including safety by design standards and practices for online platforms, products, and services. The President is calling for bipartisan support to ban targeted advertising online for children and young people and enact strong protections for their privacy, health and safety online.
Strengthen data privacy and platform transparency for all Americans: Big Tech companies collect huge amounts of data on the things we buy, the websites we visit, and the places we go. There should be clear and strict limits on the ability to collect, use, transfer, and maintain our personal data, especially for sensitive data such as geolocation and health information, and the burden must fall on companies – not consumers – to minimize how much information they collect. We must also demand transparency about the algorithms companies use that far too often discriminate against Americans and sow division. The President has called for imposing much stronger transparency requirements on Big Tech platforms and is calling for bipartisan support to impose strong limits on targeted advertising and the personal data that companies collect on all Americans.
Support the mental health of the health workforce. Even before the pandemic, health workers were experiencing high levels of burnout, anxiety, and depression. Studies have shown that burnout have reached crisis levels, affecting up to 54 percent of nurses and physicians. This year, the Centers for Disease Control and Prevention will launch a new campaign to provide a hub of mental health and resiliency resources to health care organizations in better supporting their workforce
Promote youth resilience. While rates of anxiety, depression, and self-harm among youth have been on the rise over the past several years, there are also remarkable stories of hope and resilience. To help foster innovation in promoting resilience, HHS will launch a new Children and Youth Resilience Prize Challenge, awarding a total of $750,000 in a new pilot program.

Connecting more Americans to care. On average, it takes 11 years after the onset of mental health symptoms for someone to seek treatment. We can do better. To mitigate these challenges, the Administration is working to make care more affordable and accessible across all types of health insurance, integrating mental health services into settings that are more familiar, such as schools, and expanding access to telehealth. To continue this progress, the Biden Administration will:

Improve school-based mental health. The Department of Education (ED) will announce more than $280 million in grants to increase the number of mental health care professionals in high-need districts and strengthen the school-based mental health profession pipeline. HHS and ED intend to issue guidance and propose a rule, respectively, to remove red tape for schools, making it easier for them to provide health care to students and more easily bill Medicaid funding for these critical services.
Strengthen parity. This spring, the Administration will propose new rules to ensure that insurance plans are not imposing inequitable barriers to care and mental health providers are being paid by health plans on par with other health care professionals.
Enhance crisis services. The Administration launched 988, the National Suicide & Crisis Lifeline, in 2022, making it easier for individuals experiencing a behavioral health crisis to receive timely care. In the coming year, HHS will improve the capacity of the 988 Lifeline by investing in an expansion of the crisis care workforce; scaling mobile crisis intervention services; and developing additional guidance on best practices in crisis response.
Expand access to telehealth. HHS will triple resources dedicated to promoting interstate license reciprocity for delivery of mental health services across state lines. VA will launch a new nationwide network of behavioral health clinicians to ensure timely access to evidence-based mental health services to veterans enrolled in VA health care. And, DoD will continue to expand the BRAVE program, a virtual behavioral health center providing services 24/7 to service members and their families located on federal installations across the globe.

Strengthening system capacity. Severe shortages in the behavioral health workforce are at the center of the mental health crisis. In addition to implementing legislation passed by Congress that creates 350 new slots to help train the next generation of mental health professionals, the Administration will:

Recruit diverse candidates to the mental health profession: HHS will increase funding to recruit future mental health professionals from Historically Black Colleges and Universities and to expand the Minority Fellowship Program.
Prioritize research: The Office of Science and Technology Policy and Domestic Policy Council released the White House Report on Mental Health Research Priorities, which identifies key areas where additional scientific research is needed to address our national mental health crisis. These priorities will ensure coordination across the federal agencies and private sector partners that support or perform mental health research.

Last year, after the President called for addressing the nation’s mental health crisis in the State of the Union, the Administration made important progress on expanding access to mental health services and treatment for substance use. President Biden signed into law the Bipartisan Safer Communities Act, which makes unprecedented investment in youth mental health and supports school-based health services. The Administration also oversaw the successful transition to 988, the National Suicide & Crisis Lifeline, investing over $500 million to strengthen 988 infrastructure and grow local crisis-center capacity – a twenty-fold increase over the prior administration. The Biden Administration also developed new resources to support the mental health and resilience of frontline workers, expanded Medicare coverage to include additional mental health and substance use disorder services, and encouraged states to better address youth mental health for those with Medicaid coverage.

Beating the Opioid and Overdose Epidemic by Accelerating the Crackdown on Fentanyl Trafficking and Public Health Efforts to Save Lives
Last year, President Biden announced his plan to beat the opioid epidemic as part of his Unity Agenda, because opioid use and trafficking affect families in red communities and blue communities and every community in between. Under President Biden’s leadership, overdose deaths and poisonings have decreased for five months in a row – but these deaths remain unacceptably high and are primarily caused by fentanyl. In the State of the Union, the President will announce key actions the Administration to tackle this issue head on, including by:

Disrupting the trafficking, distribution, and sale of fentanyl. In just the last year Customs and Border Protection (CBP) has seized a historic 260,000 pounds of illicit drugs primarily at ports of entry on our border, including nearly 15,000 pounds of fentanyl. The Drug Enforcement Administration and the White House Office of National Drug Control Policy’s (ONDCP) High-Intensity Drug Trafficking Areas (HIDTA) program were involved in the seizure of more than 26,000 pounds of fentanyl in FY22—including 50.6 million fentanyl-laced counterfeit prescription pills—along with over 6,500 pounds of heroin, 335,000 pounds of methamphetamine, and 370,000 pounds of cocaine. The HIDTA seizures denied $9 billion to drug traffickers, cutting into their profits. Further, through President Biden’s Executive Order on Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade, the Department of the Treasury has imposed sanctions against dozens of individuals and entities involved in the illicit drug trade. To aggressively expand on this historic effort, the President will announce in the State of Union that his administration will:

Stop more fentanyl from getting into the U.S. at the Southwest Border Ports of Entry. By providing 123 new large-scale scanners at Land Points of Entry along the Southwest Border by Fiscal Year 2026, Customs and Border Protection (CBP) will increase its inspection capacity from what has historically been around two percent of passenger vehicles and about 17 percent of cargo vehicles to 40 percent of passenger vehicles and 70 percent of cargo vehicles. These investments will crack down on a major avenue of fentanyl trafficking, securing our border and keeping dangerous drugs from reaching our country.
Stop more packages from being shipped into the United States with fentanyl and the materials used to make it. Drug traffickers use small, hard-to-track packages to ship opioids and other illicit materials into and within the United States, hidden among the millions of packages sent daily via commercial package delivery companies. That’s why CBP is working with these companies to have them voluntarily provide data that help law enforcement identify, inspect and intercept suspicious packages. Through these combined public-private efforts, CBP has increased seizures in commercial package delivery services’ warehouses from 42,000 pounds of illicit substances to more than 63,000 pounds in just the past two years. This year, CBP will expand these voluntary data sharing partnerships to capture more information – and, in turn, seize more packages.
Lead a sustained diplomatic push that will address fentanyl and its supply chain abroad. The Administration will work with international partners to disrupt the global fentanyl production and supply chain, and call on others to join our efforts. We will focus on seizing chemical ingredients and fentanyl before it can reach our communities, and hold accountable the producers, traffickers, and facilitators of these deadly drugs. Many of these ingredients and materials originate outside our borders, and we will call on global partners to work with us and do more to disrupt the criminal elements within their countries who sell chemicals and tools for the production of counterfeit pills around the world.
Work with Congress to make permanent tough penalties on suppliers of fentanyl. The federal government regulates illicitly produced fentanyl analogues and related substances as Schedule I drugs, meaning they are subject to strict regulations and criminal penalties. But traffickers have found a loophole: they can easily alter the chemical structure of fentanyl—creating “fentanyl related substances” (FRS)—to evade regulation and enhance the drug’s impact. The DEA and Congress temporarily closed this loophole by making all FRS Schedule I. The Administration looks forward to working with Congress on its comprehensive proposal to permanently schedule all illicitly produced FRS into Schedule I. Traffickers of these deadly substances must face the penalties they deserve, no matter how they adjust their drugs.

Expanding access to evidence-based prevention, harm reduction, treatment, and recovery. Over the last year, the Biden-Harris Administration took unprecedented steps to expand access to naloxone and other harm reduction interventions, such as permitting the use of $50 million for local public health departments to purchase naloxone, releasing guidance to make it easier for programs to obtain and distribute naloxone to at-risk populations, and prioritizing the review of over-the-counter naloxone applications. The Administration has also fundamentally changed addiction treatment across the country by working with Congress to remove barriers that prevented medical professionals from prescribing treatment for opioid use disorder and pursuing rulemaking to make permanent the COVID-19 era flexibilities that allowed for telehealth prescribing of buprenorphine and take-home methadone doses. To further connect people to life-saving help, the Biden-Harris Administration will:

Deliver more life-saving naloxone to communities hit hard by fentanyl. In late spring, HHS will take new steps to encourage and aide states in their efforts to use existing funding to purchase naloxone and distribute it in their communities. The Substance Abuse and Mental Health Services Administration (SAMHSA) will provide enhanced technical assistance to states who have existing State Opioid Response funds, and will host peer learning forums, national policy academies, and convenings with organizations distributing naloxone beginning this spring.
Ensure every jail and prison across the nation can provide treatment for substance use disorder. Providing treatment while individuals are in jails and prisons, and continuing their treatment in their communities, has been proven to decrease overdose deaths, reduce crime, and increase employment during reentry. By this summer, the Federal Bureau of Prisons will ensure that each of their 122 facilities are equipped and trained to provide in-house medication-assisted treatment (MAT). Further, since more than 90 percent of individuals who are incarcerated are in state and local jails and prisons, the Centers for Medicare and Medicaid Services will provide guidance this spring allowing states to use Medicaid funds to provide health care services—including treatment for people with substance use disorder—to individuals in those facilities prior to their release.
Build on historic progress to drastically expand access to medications for opioid use disorder. The Biden-Harris Administration will further expand access to treatment by working with medical professionals to make prescribing proven treatments, including buprenorphine for opioid use disorder, part of routine health care delivery and ensure that manufacturers, wholesalers, and pharmacies are making medications available to everyone with a prescription.
Launch a national campaign to educate young people on the dangers of fentanyl, and how naloxone saves lives. The Ad Council’s Real Deal on Fentanyl campaign has raised awareness about the dangers of fentanyl among youth. ONDCP and the Ad Council will build on this work by launching a naloxone education component of the campaign, which will reach the young people who are the fastest-growing age group to experience opioid overdose and poisoning by engaging popular social media platforms, college athletes and campus-based organizations. The campaign will also develop media to be shared on college campuses, in bars, public transportation stations, and retail locations to educate young people about the dangers of fentanyl and highlight naloxone resources.

During his first State of the Union address, President Biden called on Congress to get rid of outdated rules that stop doctors from prescribing treatments and provide law enforcement with the tools necessary to stop the flow of illicit drugs like fentanyl. In his State of the Union today, President Biden will highlight a bipartisan effort that delivered on his promise by passing the MAT Act, which removed the X-waiver as a barrier for health care providers prescribing life-saving medications for opioid use disorder at a time when fewer than 1 out of Americans can access the treatment they need. President Biden also signed into law the Consolidated Appropriations Act that included a two-year extension to classify fentanyl-related substances as Schedule I substances under the Controlled Substances Act, ensuring law enforcement has the tools they need to respond to the manufacture and trafficking of illicitly manufactured synthetic opioids driving the overdose epidemic.