On Wednesday, the Biden Administration released an overview of its $1.8 trillion “American Families Plan.” In general, the proposal includes $1 trillion in new spending and $800 billion in tax credits, much of which is aimed at expanding access to education and childcare. The package includes proposals for two years of universal prekindergarten, paid family and medical leave, free community college, increased teacher pipeline and preparation funding, several proposals to make childcare more affordable, expanded subsidies under the Affordable Care Act, unemployment insurance reform, an extension of new federal efforts to fight poverty, and other lofty proposals. The White House believes the proposal will be fully paid for over 15 years, with a large portion of it coming from tax increases to large corporations and America’s wealthiest individuals.
In terms of education-specific funding, it suggests $109 billion to ensure “that first-time students and workers wanting to reskill can enroll in a community college to earn a degree or credential for free.” It also stipulates that a student can use the benefit over a three-year period, with a potential fourth year, depending on the individual circumstances. If all states decide to participate, the program, which would be a federal-state partnership, could benefit more than 5.5 million students who would pay $0 in tuition and fees. It is unclear exactly which programs and/or institutions will be included under the proposal, given the vagueness of the description. Previous similar proposals have included a broad range of sub-baccalaureate credentials and institutions. ACTE will continue to monitor the development of this proposal and will provide updates on any changes.
Another important provision of the plan would invest $85 billion in Pell grants, increasing the maximum Pell grant award by roughly $1,400, or 20 percent. Currently, students can receive up to $6,495 for the 2021-22 school year. Although this falls short of the President’s commitment to doubling Pell, the Administration contends that it is a “down payment” on the commitment. The plan also allows DREAMers to access Pell Grants.
Additionally, the proposal calls on Congress to make significant investments to address teacher shortages by strengthening of the teacher pipeline. Specifically, it would double scholarships for future teachers from $4,000 to $8,000 per year; invest $2.8 billion in Grow Your Own programs and year-long, paid teacher residency programs; provide $400 million for teacher preparation at HBCUs, TCUs, and MSIs; invest $2 billion to support high-quality mentorship and leadership programs for new teachers and teachers of color; and provide $900 million for the development of special education teachers. Further, the plan calls on Congress to “invest $1.6 billion to provide educators with opportunities to obtain additional certifications in high-demand areas like special education, bilingual education, and certifications that improve teacher performance.” It is unclear at this time if the high-demand areas provision includes CTE educators, or how they could be served by other pieces of the proposal since few details have been provided. ACTE will continue advocate for CTE teachers to be included in these initiatives as the plan is considered by Congress.
Other education-related provisions include $39 billion to provide two years of subsidized tuition for students enrolled at four-year historically Black colleges and universities or other minority-serving institutions and whose family earns less than $125,000; $62 billion to invest in completion and retention activities at colleges and universities that serve high numbers of low-income students, particularly community colleges; and $200 billion for a federal-state partnership to provide universal prekindergarten for all three- and four-year-old’s.
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