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Building on the American Jobs Plan proposed approximately a month ago, President Joe Biden has now unveiled the American Families Plan as the second component of his infrastructure and pandemic recovery plan.


The American Families Plan adds to the modest higher education components in the American Jobs Plan by proposing substantial new investments throughout higher education. The plan calls for:


  • $109 billion to create a federal-state partnership program to provide two years of free community college for all first-time students, including Deferred Action for Childhood Arrival (DACA) recipients. The plan would allow students to use the benefit over three years or, if circumstances warrant, over four years.
  • An $80 billion infusion for Pell Grants to increase the current maximum grant by $1,400.
  • A new $62 billion grant program "to invest in completion and retention activities at colleges and universities that serve high numbers of low-income students, particularly community colleges.”
  • $39 billion for a program to provide two years of subsidized tuition for students from families earning less than $125,000 and who are enrolled in a four-year Historically Black College or University, Tribally Controlled University, or Minority-Serving Institution (MSI).
  • A doubling of scholarships for future teachers from $4,000 to $8,000 per year.
  • $400 million for teacher preparation at MSIs. 

The plan also offers several other ambitious proposals to strengthen teacher preparation, and early elementary and K-12 education. As with the American Jobs Plan, Congressional response to the American Families Plan has been primarily split along party lines, with the majority of Democrats in support of the proposal and most Republicans in opposition.


Megan Schneider

Senior Director, Government Affairs


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