8 Ways The American Families Plan Could Impact Your Life

1. Your taxes could drop.

The American Families Plan hopes to increase financial security for families and trigger economic growth by reducing middle-class taxes.

The Child Tax Credit from the American Rescue Plan would be extended through 2025. This would give you a credit of $3,600 for each child under six and $3,000 for each child older than six.

In addition, the Child and Dependent Care Tax Credit increase from the American Rescue Plan would become permanent. This would give you a tax credit equal to half of your child care spending for any kids under 13 that maxes out at $4,000 for one child and $8,000 for two or more children.

Are you a childless worker? The American Families Plan would make the Earned Income Tax Credit permanent, which would be a massive help to low-wage workers.

2. Child care could be cheaper.

Free preschool would be great news for parents of young children, but what about child care? It would still be an issue for kids of other ages, which is why the American Families Plan aims to make child care more affordable.

The most vulnerable households could get free child care. Other households, meanwhile, would pay for child care based on a sliding income scale.

3. Your kids could enjoy free preschool.

Speaking of education, kids who can’t get a headstart on theirs when young usually feel the adverse effects later on in life. The American Families Plan would tackle this problem by offering free preschool for children ages three and four.

4. Community college could be free.

Do you have thousands of dollars sitting in your savings so you can pay for college? Probably not, but you may not need such savings soon. Why? Because the American Families Plan would offer community college at no cost so you could get your degree or certification without breaking the bank.

This move would obviously help so many people who dream of going to college but don’t have the funds to do so. And it would also prevent more people from going into debt via student loans.

5. You could get more money for college.

While community college would be free under the American Families Plan, what if you want to continue your studies at a four-year school? That can cost quite the pretty penny, but Biden’s plan would help with an extra $1,400 added on top of the maximum Pell Grant award.

6. Your kids could stay fed over the summer.

When the coronavirus pandemic hit, you may have wondered how you would replace your children’s free or reduced-price meals. The Summer Pandemic-EBT program took care of that worry by offering funds to buy food while schools were closed. If the American Families Plan gets signed into law, Summer Pandemic-EBT would be permanent.

7. You could enjoy paid family and medical leave.

President Biden wants to create a paid family and medical leave program on a national scale. With it, you could get up to twelve weeks of paid leave, equaling a max of $4,000 per month. Should the American Families Plan be enacted, the leave program would help workers earning the lowest wages most, especially since 95 percent do not have paid family leave and 91 percent lack paid medical leave.

8. Health insurance could be cheaper.

Do you buy your own health insurance? If so, the American Rescue Plan lowered your insurance premiums for two years. And with the American Families Plan, those reductions would become permanent, so you could enjoy those savings well into the future.