Tyler Olson, 04 May 2021
The subsidies for child care in President Biden’s American Families Plan could have some unintended consequences for both families and child care businesses, including price increases, experts tell Fox News.
The American Families Plan is the third installment in three massive spending bills the president has proposed.
The $1.9 trillion American Rescue Plan, Biden’s coronavirus stimulus, has already passed. The $2 trillion-plus American Jobs Plan – billed by the White House as an infrastructure effort, though congressional Republicans say most of the spending is on other things – was proposed by Biden earlier this year. And he revealed the $1.8 trillion American Families Plan, which provides massive funding to new entitlements and other social spending, last week.
In that plan, Biden proposes spending $225 billion on child care generally, most notably capping the amount families that make up to 150% of the median income in their state will have to pay in child care at 7%.