Breaking Down Biden’s Second Half $1.8T Infrastructure Plan: American Families Plan

President Joe Biden revealed the second half of his $4 trillion infrastructure plan. The first infrastructure plan, called the American Jobs Plan, is estimated to cost $2.3 trillion. The second half of the infrastructure plan, called the American Families Plan, will cover “human infrastructure” and estimated to cost $1.8 trillion.

The second half of Biden’s infrastructure plan will go towards social/human infrastructure to include expanding the child tax credit, school infrastructure, free community college, universal pre-kindergarten, helping the underserved communities, and more. 

The American Families human infrastructure plan will use about $1 trillion in investments and $800 billion in tax credits over a decade, paid by the richest Americans who make over $400,000, aimed toward children and families. The Biden administration maintains that under the new plan, no one making $400,000 a year or less will see their taxes go up.

Biden delivered the new spending plan before a joint session of Congress just before his 100th day in office that focused on handling the COVID-19 pandemic crisis.

 

“First, access to a good education.”

Free Universal Preschool = $200 billion

  • This will go towards free universal preschool for all 3- and 4-year-olds, offered through a national partnership with states

Free Community College and Other College Incentives = $295 billion

  • $109 billion will go towards ensuring two years of free community college for all students
  • $85 billion will go towards Pell Grants, and increasing the maximum award by about $1,400 for low-income students
  • $62 billion will go towards a grant program to increase college retention and completion rates
  • $39 billion program will give two years of subsidized tuition for students from families earning less than $125,000 enrolled in a four-year historically Black college or university, tribal college or university, or minority-serving institution

 

“Second, provide access to quality, affordable child care.”

High-quality Child Care = $225 billion

  • This will go toward high-quality childcare and ensure families pay below 14% of their income toward child-care services

 

“Third, provide up to 12 weeks of paid family and medical leave.”

Paid Family and Medical Leave = $225 billion

  • This will go to create a national comprehensive paid family and medical leave program

 

“Fourth, put money directly into the pockets of millions of families.”

Child Nutritional Needs = $45 billion

  • This will go towards expanding access to the summer EBT program, which helps some low-income families with children buy food outside the school year

Lowering Health Insurance Premiums = $200 billion

  • This will make permanent the $1.9 trillion Covid stimulus plan’s provision lowering health insurance premiums for those who buy coverage on their own

Additionally, Biden wants to extend through 2025, and making permanently fully refundable, the child tax credit expansion that was included in the Covid relief bill; making permanent the recent expansion of the child and dependent care tax credit; and making permanent the earned income tax credit for childless workers.

For a few more details of the American Families Plan, you can check out the White House Fact Sheet on the proposed plan.