Update on Recovery Plans
On April 28, President Biden presented the American Families Plan, which includes nutrition program investments that ensure children have access to the nutrition they need year-round, as well as other critical investments needed to offset rising hunger by providing much-needed assistance to low-income households. Urge Congress to move quickly and enact the American Families Plan and to pass additional relief packages.
Congress Passes Year-End Package with COVID Relief and FY 2021 Appropriations
Before leaving for the holidays, Congress passed the Consolidated Appropriations Act, 2021, a package that would provide an immediate and essential downpayment on nutrition and other critical assistance for tens of millions of people across the country whose lives have been upended by the pandemic. The relief package boosts the SNAP maximum benefit by 15 percent for six months (through June 30, 2021), among other nutrition and anti-poverty provisions. Check out FRAC’s statement for more information, as well as the Congressional division-by-division summaries of the COVID relief provisions, appropriations provisions, and authorizing matters of the package. The President signed the bill into law on December 27, 2020.
Check Out SNAP Bills We’re Supporting
Check out FRAC’s Bills We’re Supporting page for bills introduced in the 117th Congress related to budget, appropriations, anti-poverty policy, and other critical issues.
Budget Reconciliation 101
Curious about Budget Reconciliation? Unsure about the process or special rules to look out for? Explore this three-page report that explains what you need to know.
Read FRAC’s Budget Reconciliation 101.
President’s FY 2021 Budget Would Increase Hunger and Poverty in America
On February 10, the president released his proposed FY 2021 budget. The budget recycles many of the harmful policy proposals in the administration’s previous budgets, including deep cuts to federal safety net programs. The budget would cut SNAP benefits by more than $180 billion over 10 years, including by reprising the widely ridiculed “America’s Harvest Box.” These proposed deep cuts to SNAP are on top of the billions of dollars in ten-year SNAP benefit cuts that the administration is seeking via rule makings. The budget would also cut school meals by $1.7 billion over 10 years by reducing the number of schools eligible to implement the Community Eligibility Provision and by changing the process for verifying school meal applications, which would result in eligible students losing access to free and reduced-price school meals. Read FRAC’s statement and detailed analysis of the president’s proposed budget.
Explore These Topics
- FY 2021 AppropriationsOn December 27, 2020, the Consolidated Appropriations Act, 2021 was signed into law, which provided FY 2021 appropriations and an immediate and essential downpayment on nutrition and other critical assistance for tens of millions of people across the country. The relief package boosts the SNAP maximum benefit by 15 percent for six months (through June 30, 2021), among other nutrition and anti-poverty provisions. Check out FRAC’s statement for more information, as well as the Congressional division-by-division summaries of the COVID relief provisions, appropriations provisions, and authorizing matters of the package.
Stay up-to-date on the federal appropriations process through the Congressional Research Service’s Appropriations Status Table.
- Refundable Tax CreditsThe Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) are critical anti-poverty programs and should be expanded. In 2019, the EITC and CTC together lifted about 7.5 million people above the poverty line, including 4 million children. Both of these tax credits are refundable, meaning that they can reduce a filer’s tax burden to zero and any remaining amount is treated as a direct refund to the filer.
Income thresholds for the EITC are dictated by marital status and number of children. The amount of the EITC depends on the filer’s income, the number of children, and marital status. In 2020, the EITC is worth a maximum of $6,660, but the EITC for childless workers is worth only $529. In 2021, thanks to temporary changes in the American Rescue Plan Act, the maximum for childless workers was increased to $1,502.
The American Rescue Plan Act also included a robust expansion of the Child Tax Credit (CTC) which is projected to cut child poverty nearly in half. The improved CTC will provide families with $3,600 per child under age 6 and $3,000 per child ages 6-17. This benefit is now available to families with little or no income who were previously excluded from the CTC benefit.
While this is great news, this expansion is authorized for just one year. Congress and the White House must make these program improvements permanent. President Biden’s American Families Plan would, in addition to critical nutrition and other investments, make permanent the full refundability of the CTC to provide support to families who have been affected by the pandemic and for parents who have been forced to cut down on work or give up jobs to take care of children after losing access to child care.
Did You Know?
Every year, Congress is supposed to follow a similar schedule of events throughout the budget and appropriations process. However, in recent years, this process has not always been followed — but the general schedule remains the same.