President Joe Biden released on Thursday a new framework for his Build Back Better agenda, which includes $1.75 trillion in investments to extend health care coverage and alleviate child poverty and combat climate change.
Key to this framework is expanding the child tax credit (CTC) for one year, and establishing full refundability permanently, allowing low-income families to qualify for the credit. The plan will also support working parents and parents attending school, covering the cost of child care for children under 6 to ensure that child care costs are capped at 7% of a family’s income.
The plan also establishes universal and free preschool for over 6 million 3- and 4-year-olds.
The major component of the framework is allocated toward climate investments, including $550 billion in investments in clean energy, an electrification-focused rebate program, an enhancement of existing home energy and efficiency tax credits, and an electric vehicle credit.
“The Build Back Better framework will set the U.S. on course to meet our climate targets, create millions of good-paying jobs and grow our economy from the bottom up and the middle out,” Biden said Thursday.
The framework also allocates spending toward reducing premiums for Affordable Care Act coverage and expanding Medicaid. An estimated 9 million ACA plan enrollees are expected to see their premiums fall by an average of $600 per year.
Sources: CNBC 10/28/21; White House 10/28/21