While details are still in flux, the measure is expected to include roughly $1 trillion in new spending and $500 billion in tax credits, according to the source, who declined to be named.
It comes just a few weeks after Biden released the American Jobs Plan, a $2.25 trillion tax and spending initiative that would make massive investments in the nation’s roads and bridges, as well as water systems, green energy, hospitals and elder care.
Final numbers are fluid, but spending in the American Families Plan may break down along these lines:
- $225 billion for paid family and medical leave
- About $225 billion for child-care support
- $200 billion for universal pre-K schooling
- “Hundreds of billions” in education funding
- “Other sums” for nutritional assistance
In a statement, White House spokesman Michael Gwin said “President Biden has already put forward the first part of his historic plan to invest in the strength of America’s economy and families, and he’ll be outlining the second element of that proposal in the coming days.”
“The details of that package are still being finalized, so speculation as to its final contents is premature at this point,” he said.
Politico reported that the administration is still working out details, but proposals on the table include raising the top marginal tax rate back to 39.6% and taxing capital gains as ordinary income above a certain threshold.
Biden has pledged not to raise taxes on those earning below $400,000 a year.
The appetite for more spending among Republicans has shrunk since Biden took office. While the president has said he wants to strike an infrastructure deal with his GOP counterparts, Republican lawmakers have shown little desire to spend more than $800 billion — about a third of the price tag of Biden’s first proposal.