On April 28, 2021, President Biden announced the American Families Plan, a $1.8 trillion package that plans to invest in the lives of American children, families and the future of the nation’s economy.
The proposed plan would:
- Provide direct support to children and families — to ensure that low- and middle-income families spend no more than seven percent of their income on childcare, and that the childcare they access is of high-quality. The plan will also provide direct support to workers and families by creating a national comprehensive paid family and medical leave program, which would guarantee 12 weeks of paid parental, family and personal illness leave. It would also cover three days of bereavement leave per year, beginning in the program’s first year.
- Provide nutrition programs — for children and students across the nation. The plan would broaden the summer Pandemic EBT program and permanently extend the program that provides free and reduced-price lunches to 29 million children.
- Extend tax cuts — to benefit lower- and middle-income workers and families, including the Child Tax Credit, the Earned Income Tax Credit, and the Child Dependent Care Tax Credit. The plan will also extend the expanded health insurance tax credits in the American Rescue Plan, which provide 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 individuals to gain health coverage.
- Offer free preschool and community college — to children across the nation. The plan is designed to provide universal, quality preschool education to three- and four-year-olds. Additionally, the plan would grant Americans access to two free years of community college for free, making college and traditional universities more affordable for low- and middle-income students.
The American Families Plan would be partially funded by proposed higher tax increases on wealthy Americans. According to the White House, tax increases for high-income Americans (anyone earning over $400,000 per year) would raise $1.5 trillion over a decade.
The bill is a significant piece of legislation that will be debated by both chambers of Congress. With that said, there may be multiple changes to the bill as it moves through the legislative process in the coming weeks. Click here for additional information.
Trust our team to keep you informed of pertinent updates. Should you have any questions, please don’t hesitate to contact Creative Benefits, Inc. at 866-306-0200 or solutions@creativebenefitsinc.com.