Biden’s Next Major Spending Proposal Taking Shape

Biden’s Next Major Spending Proposal Taking Shape


The White House is expected to release its next major spending proposal, called the American Families Plan, before President Joe Biden’s address to Congress on April 28.

Following up on Biden’s $2.3 trillion infrastructure proposal, the second phase of Biden’s Build Back Better program is expected to contain upwards of $1 trillion in spending and $500 billion in tax credits, much of it targeting social needs such as education, child care and paid family leave, according to The Washington Post’s Jeff Stein and Tyler Pager.

Stein said Tuesday that the spending could break down roughly like this:

  • $400 billion to extend the expanded child credit through 2025,
  • $225 billion for child care,
  • $225 billion for paid family leave,
  • $200 billion for universal pre-K,
  • $200 billion to $300 billion for education, including free community college.

Funding for the proposal is expected to come from tax increases on wealthy households and investors. Biden may also cite stricter enforcement of the tax code by the IRS as another source of funding.

The bottom line: The second phase of Biden’s proposed spending on public goods focuses on social capital, adding an additional – and for some, a controversial – dimension to his plan to invest heavily in American infrastructure. Passing the second phase won’t be any easier than the first, though, and could prove to be more difficult, given Republican opposition to most of the spending in the plan. Expect to see elements of both proposals in play in the coming weeks as lawmakers try to work out a deal.