What Is President Biden’s American Families Plan?

Tonight, when President Biden marks 100 days in office with a major speech to a joint session of Congress, he is expected to announce the second part of his Infrastructure Plan—the American Families Plan.  This part of Biden’s agenda does not directly support the public schools, but it will continue to ameliorate child poverty and reduce stress on families and thereby help public school students in myriad ways.

The Washington Post‘s Jeff Stein explains what is known about the plan, despite that negotiations have been fluid even in recent days: “The ‘American Families Plan,’ set to be released ahead of the president’s joint address to Congress on Wednesday, calls for devoting hundreds of billions of dollars to national child care, prekindergarten, paid family leave and tuition-free community college, among other domestic priorities… The key components of the plan consist of roughly $300 billion in education funding, the biggest pot of which includes funding to make two-year community colleges tuition-free; $225 billion in child-care funding; $225 billion for paid family and medical leave; $200 billion for prekindergarten instruction; and $200 billion to extend more enhanced Affordable Care Act subsidies….  The plan would also extend a more robust child tax credit until 2025… a measure that could cost as much as $400 billion, as well as extend a more robust tax credit for workers. Aides repeatedly stressed that the details of the plan were subject to change and that final decisions had not yet been made.”

Fiscally austere federal policy to address economic inequality dates back to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, the law that ended welfare. Policy designed to stigmatize instead of helping low income families has been around for so long that, it’s clear, the path to final enactment of Biden’s American Families Plan will not be smooth. Stein continues: “Those programs all largely reflect ideas that have moved into the Democratic mainstream, brought to the fore by the changes caused by the pandemic. The United States is the only wealthy nation with no federally provided paid maternity leave; is one of about five with no paid paternity leave; and is one of two without general paid sick leave… The Organization for Economic Co-operation and Development has ranked the United States as one of the worst in the world in terms of spending on families, with parents particularly stressed by the high cost and lack of access of child care during the pandemic.”

Negotiations in Congress look challenging. CNN‘s Phil Mattingly reports that after tonight’s speech to Congress, “Biden will then hit the road on his first sales pitch for the plan later this week.” The American Family Plan is being announced second—after the Infrastructure Plan was recently announced.  Mattingly explains: “(O)fficials acknowledged to CNN… that this is a far heavier lift politically, with limited chance for any GOP buy-in. The two pieces were spaced out intentionally in part to give space for Biden’s infrastructure plan to attract bipartisan support.” From the other side, Congressional Democrats are demanding that Biden extend the plan with additional programs and investments.

Especially controversial with Republicans are the tax reforms that have been discussed as the way to pay for the plan. Stein explains: “Biden and White House officials have been adamant that their tax hikes would not hit anyone earning under $400,000 per year. The key tax changes are expected to include increasing the top tax rate from 37 percent to 39.6 percent; taxing investment gains from capital income at ordinary wage rates for those earning more than $1 million; and imposing a higher tax on assets when they are transferred at death, among other provisions….”

A Little History about the Need for Such a Plan

In the first 100 days of his term, President Biden has been taking enormous steps to try to establish a new set of foundational values regarding the role of government for supporting children—both at school and at home. When a major shift is underway in the direction of public policy, it is difficult to discern the ultimate implications.  We can’t anticipate how Biden’s Infrastructure Plan will work out or even whether he will get his proposed budget for education passed.

We had another major shift in the basic values under public policy when a  bipartisan Congressional coalition passed the omnibus No Child Left Behind Act (NCLB) back in 2002. That law—with its glowing title about saving children—would instead solidify the idea that public schools across America are failing and would launch an era of austerity budgeting for public schools federally and across the states. We have now watched two-decades of blaming and sanctioning the schools serving America’s poorest children instead of helping them.  And at the same time, federal policy has reduced economic support for the poorest children served by public schools. The federal punitive requirements of NCLB conspired with the 1996 law that “ended welfare as we know it”— and later with the Great Recession followed by austerity budgeting across the states after the Tea Party wave election in 2010—to destroy overall state investment in public education and programs to help families barely subsisting as economic inequality soared.

It took two years (through 2018 and 2019) of statewide walkouts by public school teachers from West Virginia to Kentucky to Oklahoma along with huge strikes in Los Angeles and Oakland and Chicago to begin to correct NCLB’s strategy of test-and-punish. Teachers finally opened the nation’s eyes to the impact on schools and on children of austerity budgeting and privatizing education—an agenda that had conspired across the states to punish, privatize, and even close public schools in America’s poorest communities.  Striking teachers across the states exposed what had been invisible: staffing shortages that left children stuffed in classes of 40 students and that left children in public schools without an adequate number of counselors, school psychologists, school nurses and librarians.

It’s been a long time coming, but right now President Biden is attempting significantly to shift policy that shapes the lives of America’s poorest children and their schools. Biden’s American Rescue Plan, signed into law on March 11, allocates significant dollars for school reopening, and his FY 22 budget proposal would double investment in the Title I program that invests extra dollars in the public schools serving concentrations of America’s poorest children. Both are designed to rectify the damage to schools wrought by NCLB and a cascade of other punitive policies like Race to the Top.

Today the Biden Administration, spurred on by the economic catastrophe of COVID-19, will propose to supplement those investments by introducing the American Families Plan, intended to reshape national policies that have blamed America’s poorest families for being poor and denied them urgently needed public support. The American Families Plan would make permanent the American Rescue Act’s temporary expansion of the Child Tax Credit and offer a boost for families struggling to afford preschool, for young people unable to afford community college, and for families shut out of affordable childcare and burdened with persistent poverty, hunger, and homelessness.

Last month when the President’s infrastructure bill was announced, the Center for Law and Public Policy’s executive director, Claudia Golden responded to the parts of the infrastructure package that comprise the American Families Plan: “CLASP looks forward to supporting the remaining crucial infrastructure investments anticipated in the forthcoming American Families Plan. A successful economic recovery can’t occur without a national paid leave program that enables workers everywhere to take time when they need to care for themselves or loved ones without risking their livelihoods. It requires a large-scale investment to transform the nation’s child care and early education system, building on the important first step in the recently enacted American Rescue Plan to stabilize the sector.  A comprehensive recovery must also make permanent improvements to the child tax credit and earned income tax credit included in the American Rescue Plan, as well as a substantial additional investment in mental health….”

2 thoughts on “What Is President Biden’s American Families Plan?

  1. I’m reluctant to imply that adding additional support for families in poverty is a bad idea. While the increase in support to families is a critical part in the recovery of our society, it continues to place an unfair and unrealistic expectation/burden on the nation’s schools. One of the under-reported aspects of schooling in the pandemic is the huge disparity in access to the internet that exists in the homes of the poor. But this is not about internet access. This is a window into everyday lives of people who are struggling to pay rent, stay housed, have sufficient food, struggle with crime in their neighborhoods, etc. It is a reflection of the conditions imposed by poverty.

    The universally available opportunity to develop the capacity of our children is critical. But it is not solely the responsibility of our public schools. It is the responsibility of our society. This continues to be a responsibility not fully recognized or accepted. As long as we continue to place the burden of responsibility for moving out of poverty on our schools and on the backs of those in poverty, we will continue to equate providing more money to schools with “doing our part” to help the children of the country.

    Be well.

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