Jonah JacobsPresident Biden has been busy in his attempt to “build back better.” And one way in which he hopes to achieve that goal is through the passing of his American Families Plan.
What is it? A plan that aims to invest in families and children. Here’s a breakdown of its benefits and how they could make your life easier.
Affordable Health Insurance
People who buy their own health insurance received two years of lower premiums via the American Rescue Plan. The American Families Plan would make those cheaper premiums permanent. This could save you hundreds of dollars each year on your health insurance premiums.
Lower Taxes for the Middle Class and Those Hoping to Break Into It
The American Rescue Plan increased the Child Tax Credit to $3,600 for kids under six and $3,000 for kids over six. The American Families Plan will extend this credit to 2025. Also, the credit will be fully refundable, giving low-income families the same credit as middle-income ones. This move alone could lift many families out of poverty.
The tax breaks don’t stop there, as the American Families Plan will make the Child and Dependent Care Tax Credit increase permanent. The credit returns up to half of a family’s child care expenses for kids under 13. With it, you can receive up to $4,000 for one child or $8,000 for two or more children.
Lastly, the Earned Income Tax Credit (EITC) will be permanently expanded to childless workers. The move would help low-wage workers immensely.
Paid Family and Medical Leave on a National Level
Workers wouldn’t have to worry about income loss due to childbirth, caring for loved ones, caring for themselves after an illness, dealing with military deployments, and so on. The American Families Plan would create a national paid family and medical leave program for up to twelve weeks and up to $4,000 a month in compensation.
Expanding Free School Meal Access
High-poverty schools would have an easier time qualifying for free school meals for all of their students. And the Pandemic Summer-EBT program would be expanded permanently, so parents can buy food for their children when school is not in session.
Two Years of Free Community College
All students, including DREAMers, could get their two-year degrees at no cost.
Improved Pell Grants
To help cover ever-increasing college costs, Biden wants to boost the max Pell Grant amount by $1,400.
High-Quality Preschool At No Cost
Three and four-year-olds could go to preschool for free, saving their parents a ton of money in the process. The average savings is said to be $13,000.
Investments in Teachers
All employees in preschool programs would get a minimum wage of $15. They would also get benefits and compensation similar to kindergarten teachers with similar qualifications.
Teachers shortages would be addressed, and educators would receive improved training and development.
