For the past several weeks, County staff and its federal advocates from Alcalde & Fay have been working diligently to respond to the opportunity from our congressional delegation to submit projects for Community Project Funding consideration. Under Democratic leadership, the U.S. House of Representatives has reinstated community-directed funding (sometimes known as “earmarks”) in the upcoming appropriations bills. For the first time in 10 years, we will have the opportunity to request that specific projects be funded that will benefit our community. This funding, now known as Community Project Funding, is more limited, but has great potential. Additionally, the Transportation and Infrastructure Committee has provided an opportunity for Members of Congress to submit requests for Highway and Transit Project Designations as part of the surface transportation reauthorization expected to advance later this year. This process will allow our congressional delegation to advocate for specific community needs for highway and transit projects and deliver much-needed federal resources.
A summary of the projects submitted to the County's congressional delegation and status of those requests in included in Attachment A.
The following is an update from CSAC's federal advocate, prepared April 29, 2021.
President Biden Addresses Joint Session of Congress; Outlines American Families Plan
On April 28, President Joe Biden delivered his first address to a joint session of Congress. The primetime event was significantly scaled back in attendance, with less than a fifth of the chamber’s total seating filled as a precaution against COVID-19. In addition to laying out his vision for the country, Biden outlined his proposal for a second longer-term economic plan – the American Families Plan. Unlike the American Jobs Plan, which is focused on infrastructure, this effort addresses childcare, paid family leave, and other social welfare issues.
In all, the American Families Plan includes $1.8 trillion in investments and tax credits for families and children over the next decade. Of that funding, $800 billion would be made available in tax credits, $511 billion would be reserved for education, $225 billion would go toward child care, $225 billion would help provide paid leave, and $45 billion would be for expanded nutrition benefits.
To pay for the measure, President Biden would increase taxes on the wealthiest one percent of Americans. Among other things, his plan would restore the top personal income tax rate to 39.6 percent (up from 37 percent) for those earning more than $400,000 a year. It also would tax capital gains at the same rate for people earning $1 million or more and end a capital gains tax break on inheritances, as well as the “carried interest” tax break utilized by fund managers. According to the administration, these tax code changes would raise $1.5 trillion over the next ten years and would be fully paid for over 15 years.
To follow is a brief summary of the American Families Plan.
Universal Pre-School –President Biden is requesting $200 billion to provide free universal pre-school for all three- and four-year-olds. The plan would be in partnership with states and would focus on high-need areas. It should be noted that the proposal would provide that employees participating in pre-school and Head Start programs would receive a minimum wage of $15 per hour.
Free Community College – The plan includes $109 billion to provide two years of free community college to all Americans, including “Dreamers.”
Pell Grants – President Biden is requesting over $80 billion in federal funding to increase the maximum Pell Grant award by approximately $1,400. The plan also allows Dreamers to access Pell Grants.
School Completion and Retention Programs – The administration’s plan proposes $62 billion for a grant program that would invest in completion and retention activities at colleges and universities, particularly those that serve high numbers of low-income students.
Historically Black Colleges and Universities –The American Families Plan would provide two years of subsidized tuition at Historically Black Colleges and Universities (HBCU), Tribal Colleges and Universities (TCUs), and other Minority-Serving Institutions (MSIs). It also would provide funding to expand existing institutional aid grants to HBCUs, TCUs, and MSIs, which can be used to create or expand educational programs in high-demand fields.
Teachers – President Biden is calling on Congress to invest $9 billion to address teacher shortages, improve teacher preparation, and strengthen pipelines for teachers of color. Of this funding, $2.8 billion would go toward Grow Your Own programs and paid teacher residencies, $2 billion would be reserved for mentorship programs, $1.6 billion would be used for teachers to become certified in high-demand areas, $900 billion to develop special education teachers, and $400 million for teacher preparation programs at HBCUs, TCUs, and MSIs. The proposal would also double scholarships (up to $8,000/year) for future teachers pursuing their degrees.
Child Care – The proposal would provide direct support to families to ensure that low- and middle-income families spend no more than seven percent of their income on child care, and that the child care they access is of high-quality. The plan also would ensure that child care workers receive a minimum wage of $15 an hour.
Nutrition Programs – The American Families Plan would invest $45 billion to expand nutrition benefits for low-income children by increasing access to the summer meals program and expanding free school meals for children in high-poverty school districts. The plan also would make individuals convicted of drug offenses eligible for SNAP benefits after their incarceration.
Tax Credits – The White House proposal would extend key tax cuts included in the American Rescue Plan Act (ARPA) that benefit lower- and middle-income workers and families, including the Child Tax Credit, the Earned Income Tax Credit, and the Child and Dependent Care Tax Credit. It also would extend the expanded health insurance tax credits that were included in ARPA.
Paid Family and Medical Leave – The proposal calls for the creation of a national paid family and medical leave program. Pursuant to the administration’s plan, leave could be used to care for a new child, deal with a personal or family illness, bereavement, or another serious reason. The $225 billion investment would guarantee up to 12 weeks of paid leave by the tenth year of the program (and three days for bereavement annually to begin in the first year). Workers would be eligible for up to $4,000 a month. At a minimum, employees would receive at least two-thirds of their average weekly wages. In addition, the proposal calls on Congress to approve legislation (HR 2465; S 1195) that would require certain employers to allow their employees to accrue seven days of paid sick leave annually.
Senate Set to Approve Bipartisan Water Infrastructure Legislation
Later today, the Senate is expected to approve bipartisan legislation – the Drinking Water and Wastewater Infrastructure Act of 2021 – that would invest more than $35 billion in water infrastructure projects across the country with a “focus on upgrading aging infrastructure, addressing the threat of climate change, investing in new technologies, and providing assistance to marginalized communities.” The measure (S 914) would reauthorize both the Drinking Water State Revolving Fund (SRF) and the Clean Water SRF. These programs provide financial aid to local drinking water systems and to state clean water programs, as well as loan financing and assistance for communities for a range of water infrastructure projects. Pursuant to S 914, both programs would be reauthorized at $2.4 billion in fiscal year 2022, gradually increasing that amount to $3.25 billion in fiscal years 2025 and 2026 for a total of $14.7 billion. The bill also would increase the minimum percentage of Drinking Water SRF dollars that must go to disadvantaged communities. Finally, the legislation would reauthorize the Water Infrastructure Finance and Innovation Act (WIFIA) through 2026 at the current funding level of $50 million per year.
House Ways and Means Committee Introduces Legislation Supporting Families
This week, House Ways and Means Committee Democrats unveiled a draft measure – Building an Economy for Families Act – that would make permanent a number of provisions in ARPA, including permanently extending the increases to the Child Tax Credit, Earned Income Tax Credit, and the Child and Dependent Care Tax Credit. In addition, the draft measure contains a national paid family and medical leave initiative similar to the plan included in the American Families Act. The legislation also includes additional investments in child care, including $200 million annually to increase child care slots in shortage areas, as well as funding increases for child care subsidies and infrastructure.
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