When the Biden Administration released its “infrastructure” plan earlier this spring, it was clear that a second part of the plan would be forthcoming. The proposal released at that time– the American Jobs Plan– was billed as one focusing on “physical infrastructure” and representatives from the Administration noted at the time that the White House would offer a second plan focused on “human infrastructure.” The White House released the broad parameters of that human infrastructure plan– the American Families Plan– earlier today.
According to the Administration, the American Families Plan would cost approximately $1.8 trillion and would be paid for over 15 years. Approximately $1 trillion of the cost would come from new spending and $800 billion from changes to the tax code. A fact sheet from The White House about the new plan is available here.
A major focus area of the American Families Plan is higher education. Post-secondary education provisions of most interest include:
- $80 billion in new investments for Pell grants
- The new funding would provide an increase of approximately $1,400 in the maximum Pell Grant, which would represent “a down payment” on doubling the maximum award; the American Jobs Plan, the earlier infrastructure plan, called for an additional increase of $400 in the Pell maximum.
- DREAMers would become eligible for Pell
- $62 billion– which would be funded through states, tribes, and territories– for innovative and proven programs and strategies at institutions to increase retention and completion rates
- $109 billion for two years of free community college, regardless of income, the benefits of which can be used over four years; DREAMers would be eligible to participate in this program
- Additional funding for HBCUs, tribal colleges and universities, and other MSIs:
- $39 billion to pay for two years of free tuition for students who come from families with incomes of less than $125,000 at four-year MSIs
- $5 billion to create and expand high-demand programs, like those in STEM fields
- $2 billion to build pipeline in the healthcare workforce with graduate degrees
- $9 billion for teacher education, preparation, and diversification, including, but not limited to:
- $900 million for special education teacher preparation programs
- $400 million for teacher prep programs at MSIs
- $2 billion for education leadership programs
- an increase in the TEACH Grant program
- an increase in teacher residency programs
President Biden is expected to speak about many of these provisions during his speech before Congress this evening.
It is important to keep in mind that, like the Administration’s American Jobs Plan, there is no legislative text yet for this proposal. We will continue to provide additional details as they become available.