The House signed the Inflation Reduction Act of 2022 into law on Friday. The extensive bill is targeted at fighting climate change, slashing the national deficit and lowering the price of prescription drugs. It’s an ambitious $430 billion package that democrats applaud. And it arrives at a crucial time — less than three months before midterm elections.
See: EV Tax Credit in Inflation Reduction Act Very Limiting: ‘Most Vehicles Immediately Ineligible’
Find: Inflation Reduction Act Offers Home Tax Credits, Rebates to Upgrade Electric and Solar Infrastructure
The White House says the act will tackle inflation by both reducing the cost of energy and the cost of healthcare by lowering the deficit. Surely any steps to bring down inflation are welcome by all Americans, not just democrats, but there are some areas where the bill falls short for many families.
In particular, the bill fails to live up to the promises made in the Build Back Better proposal by omitting the following:
The Child Tax Credit
Under the Inflation Reduction Act, families will not receive the $250 or $300 a month for kids. These direct payments started during the pandemic and helped alleviate poverty throughout the country.
So much for those two years of free preschool that the Build Back Better plan included in its agenda. This is nowhere to be found in the Inflation Reduction Act.
Paid Family Leave
On the matter of paid family leave, the U.S has always been sorely lacking. Other wealthy countries like Finland and Belgium tout generous federal policies for all families, and it’s long been debated that America can and should offer the same. But that didn’t happen under the Inflation Reduction Act.
Subsidized Child Care
Child care: Yet another area where the U.S desperately needs to make improvements to, at the very least, help seal the gender gap. President Joe Biden originally wanted to give subsidized child care to Americans earning less than $300,000 a year, but that didn’t make the cut of this bill either.
Free School Meals
The swelling price of food is a serious problem and many families feel it brutally when feeding their kids. With the Build Back Better plan, Biden wanted to provide free school meals to 8.9 million children and give $65 per child on a monthly basis to families over the summer (when school is not in session). The Inflation Reduction Act does not include this benefit.
More From GOBankingRates