Partnerships
& Programs

Contact an Expert

Biden Outlines the American Families Plan

May 04, 2021 blog featured image

LEAVE IS STILL IN THE MIX

The American Families Plan, a $1.8 trillion legislative package, was recently proposed to Congress by President Biden. Among the items included in the proposed bill were around $800 billion in enhanced tax credits, which will include leave provisions that will extend the benefits included in the recently passed American Rescue Plan Act for lower- and middle-income workers and families.

In general, this proposed plan would:

  • Provide direct support to children and families: The bill would provide direct support for families to ensure that low- and middle-income families spend no more than 7% of their income on childcare and ensure the childcare they access is of high quality. The bill would also provide a national comprehensive paid family and medical leave program.
  • Extend tax cuts for American workers and families with children: The bill would extend tax cuts in the American Rescue Plan Act that benefit lower- and middle-income workers and families. In addition, the American Families Plan would extend the expanded health insurance tax credits included in the American Rescue Plan.
  • Offer free preschool and community college: The bill heavily invests in education and would provide universal preschool to three- and four-year-old children. The bill would also provide Americans two years of free community college.

According to an update from the White House, President Biden will propose a set of measures to increase the amount of taxes that the wealthiest Americans pay, while ensuring that no one making $400,000 per year or less will see a tax increase. This bill would be partially funded by proposed higher taxes on wealthy Americans.

EMPLOYER TAKEAWAY

This bill is a large piece of legislation that will be debated by both chambers of Congress. Expect major changes from this initial proposal as this bill moves its way through the legislative process.

We will continue to monitor developments and provide updates as more details become available.

Reach out to your Hylant representative for further information. Don’t have one? Contact us here.

The above information does not constitute advice. Always contact your employee benefits broker or trusted adviser for insurance-related questions.