INCOME & WORK SUPPORTS UPDATE
NOVEMBER 2021

Tired Argument on Child Tax Credit Is Simply Wrong

A recent op-ed in the Washington Post claimed that an expanded Child Tax Credit (CTC) would disincentivize work. Yolanda Gordon, a member of CLASP’s Community Partnership Group (CPG), responded to the opinion, stating that the author uses “an upside-down argument that a parent would be willing to quit a job that pays for all of their basic needs because they are getting a $250-300 tax credit per month.”

The CPG is a collective of activists from across the United States who partner with nonprofits to ensure that their work is grounded in the expertise and experiences of people directly impacted by anti-poverty policies

Congress Must Prioritize Investments in Anti-Racist Housing Programs to Truly "Build Back Better"

The affordable housing investments written into the original budget resolution were historic and bold, totaling $327 billion. But now that the Biden Administration and Congress are paring down the original $3.5 trillion package—by some reports to less than $2 trillion—some of the exciting new programs that House committees proposed have been sidelined. Lawmakers must prioritize investments in restitutive programs that can support housing justice organizers in the local fight for anti-racist housing and land use policies, redress racial disparities in homeownership, and reinvest in underserved communities.

Build Back Better Package Must Include Medicaid Coverage Gap Solution

In exchange for the additional dollars Congress gave states to maintain Medicaid enrollment during the pandemic, states agreed to a Maintenance of Effort requirement that precludes them from disenrolling people from Medicaid until the end of the federal public health emergency (PHE), which is expected in 2022—possibly as early as January. Millions of people could lose Medicaid coverage once the PHE is lifted. A coverage gap solution in the Build Back Better Act could provide affordable health insurance to the over 2 million people who are currently in the coverage gap, as well as mitigate coverage losses that will come when the PHE expires.

IWS Updates

Last Thursday, October 28, the Biden Administration released the newest framework for the Build Back Better (BBB) Act. Even at its reduced size of $1.75 trillion—compared to the previous $3.5 trillion—it includes significant “once-in-a-generation” investments that begin moving us toward a more equitable future for all. The bullets below preview key investments in public benefits that the package proposes, and their potential impacts.

The BBB plan makes “refundability” of the CTC permanent, meaning that families with low incomes who need the help the most will continue to be eligible permanently – rather than being cut off because their families earn too little. In addition, the Act’s provisions restore the CTC to “little DREAMers” and extend the expanded benefits and monthly payments for one year. These provisions will have significant, continued impacts on poverty, especially among Black and Latinx families and children.
The BBB plan extends the American Rescue Plan improvements to the Earned Income Tax Credit (EITC) for one year. The EITC is available to workers without children living with them, including young workers who were previously excluded. It also makes people with low incomes and disabilities who live in the U.S. territories eligible for cash assistance under Supplemental Security Income.
By providing a solution to the Medicaid expansion coverage gap, the BBB plan provides affordable health insurance to the 2.2 million people – primarily people of color in the South – who are uninsured because their state has refused to expand Medicaid. Moreover, the investments in home and community-based services, 12 months of Medicaid and Children's Health Insurance Program (CHIP) coverage after pregnancy, and increased tax credits to help people with low incomes afford marketplace coverage will all help people receive the care they need. The plan also includes key elements of the “Momnibus” to save moms’ lives and advance maternal health equity.
The BBB plan expands free school meals to 8.7 million children during the school year and provides a $65 per child per month benefit to the families of 29 million children to purchase food during the summer. This year-round investment will improve the nutritional security of millions of children.
The BBB plan’s targeted investments in rental assistance, public housing, and the Housing Trust Fund will lead to the construction and preservation of affordable homes for hundreds of thousands of people with low incomes. Importantly, the plan also includes investments in restitutive programs that aim to dismantle racial inequities in homeownership and wealth such as down payment assistance for first-generation homebuyers, grants for community-led redevelopment projects in neighborhoods that have been divested from, and incentives for state and local zoning reforms.

The House bill was revised on Wednesday to include four weeks of paid family leave, which had not been included in the Biden Administration's plan. Even as we celebrate this historic step, there is continued work to be done to ensure that these provisions become law. Furthermore, to limit the size of the package, many of these significant provisions would only be funded for a few years—in some cases, just one. This means that it will be critical to document the effects of these policies and build the power of those who are helped, so that we will have the votes needed to make these provisions permanent in the future.

On October 22, Protecting Immigrant Families (PIF) submitted the sign-on comment in response to the U.S. Department of Homeland Security’s (DHS) Advance Notice of Proposed Rulemaking (ANPRM) on public charge. The comment urges DHS to move as expeditiously as possible to issue a NPRM and Final Rule that prevents abuses like we saw under the Trump administration and secures access to programs that help immigrant families thrive. The comment was signed by 630+ organizations from 46 states and DC, representing diverse sectors ranging from faith to nutrition to reproductive health groups. A huge thank you to every organization that signed on -- we couldn’t have done this without you! We are so thankful and appreciative of your contributions into this comment strategy, and we hope to work with you and your organization again in the future. Please find a copy of the submitted comment along with the full list of organizational signatories here.