American Families Plan FAQ

Keep reading, and we’ll explain what it can offer you and your family, should this ambitious plan from President Biden get approved.

Wasn’t the American Families Plan Already Approved?

No, as this is President Biden’s third plan that he hopes will boost the country’s economy. His first plan was the American Rescue Plan, which has already been signed into law. It was in response to the coronavirus pandemic, and offered stimulus payments, school reopenings, vaccine rollouts, etc.

The second plan Biden announced focused on infrastructure, while the American Families Plan is the third that sets its sights on helping struggling households.

The American Families Plan has not been approved as of yet. If it does get approved, you can look forward to several benefits, which we’ll discuss now.

Would the American Families Plan Provide Paid Leave?

Yes, as it has a very ambitious plan that hopes to offer 12 weeks of paid leave for parental, family, and personal illness reasons. Under this national program, workers would receive up to $4,000 per month. Such a benefit would help low-wage workers the most, as it would represent a replacement of nearly 80 percent of their wages.

Would Unemployment Insurance Change?

Unemployment insurance is vaguely mentioned in the American Families Plan. It’s played a massive part during the coronavirus pandemic since so many people lost their jobs, which is why Biden wants to streamline the process, so payments get out quicker.

How Would the American Families Plan Affect Taxes?

In terms of taxes, the plan’s highlight is that it would extend the raised Child Tax Credit from the American Rescue Plan through 2025. Not only would that tax credit represent $3,600 per child under six and $3,000 per child over six, but it would also be fully refundable. In short, low-income families would get the same credit as middle-income families. In doing so, it’s expected to reduce child poverty.

The Child and Dependent Care Tax Credit was expanded under the American Rescue Plan as well. Under the American Families Plan, it would be permanently expanded. Up to half of child care expenses for kids under 13 would be refunded to families as a tax credit. These would be the maximum amounts:

• One child – up to $4,000
• Two children or more – up to $8,000

Childless workers would benefit from tax breaks under the American Families Plan too. To help low-wage workers, the Earned Income Tax Credit expansion would be permanent.

Would the American Families Plan Offer Any Food Assistance?

Yes, but the food assistance is reserved for children. The Summer Pandemic-EBT program would become permanent instead of simply being a response to the coronavirus. Under this program, parents could buy food for their kids when schools are not in session. By replacing free and reduced-price meals that kids get at school, parents could feel relieved knowing that their children’s nutrition would not suffer during certain months of the year.

If your child is in a school that does not offer free meals, that could change. Biden plans to ease eligibility requirements to get free meals into more schools. If successful, this could positively impact the nutrition of millions of kids.