Washington D.C., Apr 29, 2021 / 15:00 pm
President Joe Biden on Wednesday unveiled the American Families Plan, a $1.8 trillion package that includes a paid leave program, education spending, and an increase to the child tax credit.
Although members of both parties have previously introduced plans to expand the child tax credit, proposals have varied on the amount of the credit and the means of distribution. Some proposals have included a work requirement for families.
Biden advocated for his plan before a joint session of Congress on Wednesday evening.
“No one should have to choose between a job and a paycheck or taking care of themselves and their loved ones or parent or spouse or child,” he said of his proposal to create a comprehensive paid family and medical leave program.
Biden’s paid leave program guarantees 12 weeks of paid parental, family, and “personal illness/safe” leave by its tenth year; workers would be paid up to $4,000 per month at a minimum of two-thirds of their weekly wages, with lowest-income workers receiving a maximum of 80% of their wages.
On Wednesday, Biden argued that the expanded child tax credit should be extended through the year 2025, adding that “we can afford it.”
The child tax credit reduces the amount of federal taxes owed for people with a child under the age of 17.
The American Rescue Plan - a nearly $2 trillion COVID relief package passed by Congress and signed into law earlier this year - expanded the child tax credit from $2,000 to $3,000 for each child age six and above, with parents receiving a $3,600 credit for each child under the age of six. Biden’s proposal seeks to extend the expanded credit, and would also make 17-year-olds eligible for the credit.