Biden Unveils the American Families Plan

by Laura Walling, Senior Director of Government Relations, Goodwill Industries International

President Biden used his address to a joint session of Congress to outline his vision for the American Families Plan. After signing the American Rescue Plan Act in March, the President unveiled an outline for the American Jobs Plan, a $2.3 trillion jobs and infrastructure proposal, which we outlined last month and would make major investments in the workforce system. The American Families Plan is the final piece of the three-part Build Back Better agenda.

The American Families Plan proposes $1.8 trillion in investments and tax credits over a 10-year period. Highlights of particular interest to Goodwill and the individuals we serve include:

• Two free years of community college;
• An increase of up to approximately $1,400 in Pell Grants and allowing DREAMers to access the funding;
• Investments in teacher trainings and support;
• Investments in the early child care workforce, ensuring child care workers receive job-embedded coaching and professional development;
• Ensure no one earning under 150% of state median income has to pay more than 7% of their income on high-quality care for children under five years of age;
• Provide comprehensive paid family and medical leave for workers;
• Expand nutrition assistance to children and families and those formerly incarcerated for drug-related felonies;
• Investments in maternal health;
• Make permanent the Child and Dependent Care Tax Credit and the Earned Income Tax Credit expansion for childless workers;
• Extend the Child Tax Credits in the American Rescue Plan for another five years;
• Make permanent health insurance premium reductions.

Coupled with the American Jobs Plan, both proposals aim to support workers and families who were adversely impacted by the pandemic and the recession – particularly people of color, women, and those without a college degree. In his remarks, the President described the American Jobs Plan as, “a once-in-a-generation investment in America itself. The largest jobs plan since World War II.” He also made more than 40 references to “jobs” during his speech. Providing all people with the skills they need to return to work and advance in their careers is critical for an equitable economic recovery. The American Families Plan could provide the additional supports that people need in order to focus on their careers.

Neither proposal has been turned into legislative language yet, and both come at a large cost. Negotiations are continuing in Congress to see if there are elements that could receive bipartisan support. We’ll be sharing more information with our advocates in the weeks ahead regarding the path forward.