Biden rolls out US$1.8 trillion 'American Families Plan'

A month after he laid out a roughly US$2 trillion infrastructure plan aimed at helping the nation recover from the coronavirus pandemic, President Biden is unveiling an additional US$1.8 trillion federal investment in education, child care and paid family leave during his first address tonight, CNN reports

The massive package — which Biden is calling the American Families Plan — is the second half of his effort to revitalize the nation and ensure a more equitable recovery. The proposal would also extend or make permanent enhancements to several key tax credits that were contained in the Democrats' US$1.9 trillion rescue bill, which Biden signed into law last month.

The President intends to finance the latest package by hiking taxes on the rich, saying he wants to reward work, not wealth. His new proposed measures would raise about US$1.5 trillion over a decade.The families plan pairs with Biden's infrastructure proposal, known as the American Jobs Plan, which calls for improving the nation's roads, bridges, broadband, railways and schools.

Here's a closer look at what is in the plan:

Helping families afford child care: Biden's proposal calls for having low- and middle-income families pay no more than 7 percent of their income on child care for kids younger than age 5. Parents earning up to 1.5 times the median income in their state would qualify.

Making community college free: Biden is proposing a $109 billion plan to make two years of community college free. The federal government would cover about 75% of the average tuition cost in each state when the program is fully implemented, with states picking up the rest, another senior administration official said. States would also be expected to maintain their current contributions to their higher education systems.

Enhancing Pell Grants: The President would provide up to approximately $1,400 in additional assistance to low-income students by increasing the Pell Grant award. Nearly 7 million students, including many people of color, rely on Pell Grants, but their value has not kept up with the rising cost of college. Students can receive up to US$6,495 for the 2021-22 school year. Biden has promised to double the maximum award.

Providing paid family and medical leave: A limited federal paid family and sick leave measure was included as part of the major pandemic rescue package passed by Congress in March 2020. It provided up to two weeks of paid sick days for workers who were ill or quarantined, as well as an additional 10 weeks of paid family leave if they needed to care for a child whose school or daycare was closed due to the pandemic. The requirement expired in December, though the federal government will continue to subsidize employers who choose to offer the paid leave through September.

Investing US$200 billion in universal preschool: Biden is calling for the federal government to invest US$200 billion in universal preschool for all 3- and 4-year-olds through a national partnership with states. The administration estimates it would benefit 5 million children and save the average family US$13,000 when fully implemented.