The Biden Administration has outlined their proposal for their American Families Plan. They presented the details of $1 trillion in new spending and $800 billion in tax credits to support families and children. The Administration cites a study that every $1 spent in early childhood is $7.30 ROI—which would have 2 generations of impact. Here are the main points of how young children and families would benefit from the proposed plan:

Make Child Care More Affordable & Higher Quality

  • Subsidies to ensure low and middle-income families don’t spend more than 7% of their income on child care.
  • Permanent continuation of the tax credits in the America Rescue Plan.
    Child Tax Credit, Earned Income Tax Credit, and the Child and Dependent Care Tax Credit.
  • Child care providers would receive funding to cover the cost of 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.
  • Investments for a $15 minimum wage for early childhood staff and to ensure that those with similar qualifications as kindergarten teachers receive comparable compensation and benefits. 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.

Paid Leave Program

  • Not paid by the employer, but rather a government benefit.
  • Guaranteed 12 weeks of paid “parental, family and personal illness/safe leave” by its 10th year in existence.
  • Workers on leave would earn up to $4,000 a month, with as little as two-thirds or as much as 80% of their incomes replaced, depending on how much they earn.
  • Leave would include: the birth of a child, taking care of a sick adult, bereavement, and sexual abuse recovery.

Financing For Universal Pre-K

  • Applies to all 3 and 4-year-olds.
  • Initially pioneered in recent years by city programs in New York and Washington.

Support for Education and Teachers

  • Address teacher shortages, improve teacher preparation, and strengthen pipelines for teachers of color.
  • Help current teachers earn in-demand credentials—prioritizing public school teachers.
    Invest in programs that leverage teachers as leaders, such as high-quality mentorship programs for new teachers and teachers of color.

Expanded Subsidies Under the Affordable Care Act

Extension of New Federal Efforts to Fight Poverty

  • Expand free meals for children in the highest poverty districts (those with at least 40% of students participating in SNAP) by reimbursing a higher percentage of meals at the free reimbursement rate through The Community Eligibility Provision.
  • Expand summer Electronic Benefit Transfer (EBT) to all eligible children nationwide.

Adjustments to the Tax Code

  • Restore the top tax bracket to what it was before the 2017 law, returning the rate to 39.6% (applies to about 1% of the population).
  • Eliminate tax loopholes that allow escaping taxes by passing it down to heirs and treating hedge fund partners’ income like all other income tax.
  • No changes to the Payroll Tax.

This isn’t finalized, let alone a passed bill that’s signed into law yet. However, there are a lot of ideas in there that would have a direct impact on American families and their children.

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