The framework for President Joe Biden’s $1.85 trillion Build Back Better Act includes tax credits, rebates, federal assistance and incentives that millions of Americans can take advantage of.
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The bipartisan bill is slated to implement initiatives to rebuild physical infrastructure, contribute significantly to education and child care, support new fast-speed internet connections throughout the country and make progress towards climate change initiatives.
Biden claims the framework will set the United States “on course to meet its climate goals, create millions of good-paying jobs, enable more Americans to join and remain in the labor force, and grow our economy from the bottom up and the middle out.”
With its estimated to cost at almost $2 trillion, here are the main ways the new spending bill will help you save big:
Childcare and Preschool
Biden’s new bill would invest $400 billion for free preschool for more than 6 million children between the ages of 3 and 4. This would also expand affordable childcare for 90% of families with young children nationwide.
The White House estimates that only this free preschool provision alone could save parents $8,000 per year. The initiative would also save parents with annual incomes of $100,000 and one small toddler more than $5,000 in childcare savings per year.
Parents will be allowed to send children to preschools of their choice ranging from public schools to child care providers to Head Start.
Child Tax Credits and Earned Income Tax Credits
The framework includes $200 billion for child tax and earned income tax credits. One of the biggest areas of investment is an expansion of the child tax credit for more years to come, mimicking the advance monthly payments that have been doled out in recent months. This year, families received anywhere from $250 to $300 per month, per child if they qualified. Over 92% of American families with children under the age of 17 qualify for at least some benefit, and the credit is available to those who do not pay taxes as well. This year, the monthly payments began in July and will last through December, and have already lifted millions of children out of poverty and food insecurity. The framework’s intention is to continue these monthly payments for 2022.
The earned income tax credit would also get an extension until 2022 and pay up to $6,728 depending on tax filing status and various other factors.
Care for Senior Citizens
The framework includes $150 billion to deliver affordable home care to senior citizens living with disabilities. The White House says roughly $5,800 is paid out annually for just four hours of home care per week.
The framework will expand Medicare coverage to cover hearing coverage so that older Americans can access the affordable care they need the White House says.
The framework will include $130 billion to reduce health insurance premiums for over 9 million Americans, the White House claims. The program would essentially expand the Premium Tax Credit, allowing individuals and families to receive a refund for health insurance premiums they buy on the government affordable care act marketplace website. The White House claims this could save up to $600 per person each year.
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The framework states that Democrats will call on Congress to invest $150 billion in building, rehabilitating and improving over 1 million affordable homes. This would include a down-payment fund that offers qualifying homebuyers $20,000 towards a down payment.
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