As President Joe Biden seeks reelection, he's reviving proposals to transform American life by reducing the cost of child care, expanding preschool access, and increasing the availability of home aides for older people.
These initiatives were originally part of his Build Back Better agenda, which faced obstacles in Congress two years ago. Neera Tanden, Biden's top domestic policy adviser, now refers to them as "unfinished business." While the White House has attempted to advance these ideas through regulations and executive orders, Biden aims to pursue more comprehensive legislation through Congress in a second term.
Addressing The Sandwich Generation's Pressure
As Biden deals with criticism over inflation during his tenure, his team sees a chance to pledge reduced expenses for voters in the "sandwich generation," those caring for both young children and elderly parents simultaneously. Plans related to the care economy could resonate strongly with women, who often hold low-paying caregiving jobs or face career interruptions due to family responsibilities. If successful, Biden could align the United States more closely with other affluent nations where robust safety net programs are common.
Biden aims to allocate hundreds of billions of dollars toward nationwide paid family leave, federal childcare subsidies, universal preschool access, and home care for the elderly and disabled. The challenge lies in persuading Americans and their representatives in Congress that caregiving is not merely a private concern but an economic one that could be fundamental to increased employment and enhanced opportunities. In 2022, over 11% of parents had to decline, leave, or change jobs due to childcare issues. During a recent speech to care workers and others in Washington, Biden emphasized the importance of establishing the best caregiving economy to achieve the best overall economy.
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Capitol Hill's Resistance
His objectives have proven challenging to achieve. Republicans are critical of the high expenses associated with Biden's plans and his proposal to finance them through tax increases on the wealthy. They are also worried that efforts to increase childcare worker salaries could raise costs for families who do not qualify for subsidy programs due to their higher incomes. Even unified support from Democrats is challenging to secure. Despite Senator Joe Manchin, D-W.Va., expressing support for preschool and childcare programs, Biden could not garner his backing for other aspects of his Build Back Better agenda earlier in his term, which is a fatal obstacle given the party's slim majority in Congress. Due to Manchin's opposition, several care economy proposals were dropped in favor of the more focused Inflation Reduction Act, which primarily addressed climate change and prescription drug costs.
Workarounds While The Legislation is Halted
Tanden explained that the White House had to explore alternative avenues to advance Biden's ideas. Consequently, the administration turned to executive action when legislative efforts fell through. Over a year ago, the executive order was unveiled, increasing pay for teachers in federally funded Head Start programs, reducing costs for families receiving federal childcare subsidies, improving child care for parents in the military, and providing better home care for veterans. Biden announced the order in a Rose Garden ceremony, highlighting the significance of the care economy to the nation, referencing the support he received from family members after the tragic loss of his first wife and daughter in a car accident, with his two sons badly injured soon after he was elected back in 1972. Despite the challenges posed by legislative obstacles and divided control of Congress, Democrats managed to secure an additional $1 billion for Head Start preschool and childcare subsidies for low-income families.
Biden's Household Assistance Proposal
The president's recent budget proposal includes generous childcare subsidies for households earning less than $200,000 annually, ensuring they pay around $10 or less per day, with the poorest families paying nothing. Additionally, funding would be allocated to expand preschool availability. Although Biden has requested nearly $15 billion for these programs, it is unlikely to be considered by Congress, where Republicans control the House.
Scott Lincicome, vice president of general economics at the libertarian Cato Institute, argues that Biden's flawed approach to these issues, believing that injecting large amounts of money into these sectors will lead to higher prices without increasing access. Instead, Lincicome suggests reducing regulations, such as permitting childcare workers to care for more children, to lower overall costs. He asserts that plenty of policy reforms are available, but creating another government program in Washington, D.C., is rarely the most effective solution.
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