All in the Family: Obama's State of the Union Vision

Last week President Obama delivered his sixth State of the Union address, unveiling his priorities for the coming year. The Administration’s ambitious domestic policy agenda is largely focused on what the President is referring to as “middle class economics,” or policies that help “working families feel more secure in a world of constant change.” The policies he outlined aim to improve economic opportunity and security for middle class families-- all members of the family.

Whether it’s termed middle class economics, two-generation strategies, or family-centered social policy (the moniker we’re using here at New America), this concept of creating and coordinating public policies to best serve the needs of the entire family unit has become increasingly popular during Obama’s tenure. Promise Neighborhoods are one example. This approach to policymaking recognizes the complicated and often intergenerational nature of poverty, and thus tries to address the needs of multiple generations at the same time.

The 21st century economy has led to significant changes in the workforce and the family-- for instance, there are more mothers with young children in the workforce, more single-parent families, and more jobs that require postsecondary education and training. Unfortunately, our nation’s outdated social policies have not kept up with many of these changes and are failing to effectively address the needs of working Americans, many of whom are still recovering from the Great Recession.

This year, New America’s Family-Centered Social Policy Initiative is analyzing how social policies can be adapted to best meet the needs of the entire family. We’re glad to see the Obama administration outlining a cohesive agenda that attempts to address many of the leading challenges facing families today.

Here’s an overview of the President’s family-focused policy agenda:

Affordable Child Care:

The President has been calling for better access to high-quality early care and education settings for several years. But while past State of the Union addresses have focused on more accessible pre-K, this year’s speech called on Congress to support  access to affordable child care for infants and toddlers. Child care costs more than public university tuition in many states, placing a substantial financial burden on families. With the increase in dual-earner families and the rise of single-parent households, child care is “not a nice-to-have -- it's a must-have.”

Under the President’s plan, middle class families with young children would receive up to $3,000 per child through the Child Care and Dependent Tax Credit to help cover child care costs. He also called for expanding the Child Care and Development Fund which provides child care subsidies to lower-income families. These policies would benefit both the parents who are able to work and/or pursue higher education as well as their children. More details on the President’s child care proposal are available here.

Congress has generally been slow to move on the President’s early education initiatives-- but child care has so far proven to be a rare area of bipartisan agreement. Last year both parties in Congress came together and reauthorized the Child Care and Development Block Grant (CCDBG), enacting safety and quality reform within child care. However, Obama’s new child care proposals are much more costly, and the higher price tag is likely enough to discourage Congress from implementing it.

Paid Leave and Schedules that Work:

Last year during the White House Summit on Working Families, the President made working families a top priority for his Administration. At this year’s State of the Union the President continued to draw attention to the 43 million workers in the United States that have no paid sick leave. During his address, he stated, “We’re the only advanced country on Earth that doesn’t guarantee paid sick leave or paid maternity leave to our workers.” The President charged Congress to bring paid leave legislation to a vote, proposing that every worker needs the ability to earn at least seven paid sick days. Many parents face the choice between losing their pay and caring for a sick child or family member. This should not be the case. In addition to paid leave, working families need flexibility and predictable schedules.

Affordable Higher Education: 

In today’s economy, higher education and training are often necessary to remain competitive in the job market. For many low- and middle-income families, high tuition discourages enrollment in these programs or leaves graduates deep in debt. To make higher education more accessible, President Obama would like to provide all “responsible” students with two years of community college, tuition free.  As the President explained, “Whoever you are, this plan is your chance to graduate ready for the new economy, without a load of debt.”

Higher education provides parents the opportunity to gains the skills they need to climb the economic ladder and provide for their families. Seeing as more than one quarter of community college students are parents, this proposal could directly benefit families. However, Representative Kline (R-MN), Chairman of the House education committee, has already said there is “not a chance in the world” that this $60 billion initiative will receive Congressional approval.

President Obama also called for permanently instating and expanding the benefits for the American Opportunity Tax Credit, so that it would provide families up to $2,500 each year for up to five years as students work towards a college degree. Inside Higher Ed has more details on the President’s higher education tax proposals here.

Additional Changes to the Tax Code: 

Among other changes to the tax code, Obama would like to expand access to the politically popular Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), both of which support lower-income working parents. According to the White House, “Research has consistently shown that the helping low-wage working families through the EITC and CTC not only boosts parents’ employment rates and reduces poverty, but has positive longer-term effects on children, including improved health and educational outcomes.” The President put forth a similar proposal for EITC last year.

These aren’t necessarily new priorities for the Obama administration-- the President has long advocated for better access to early education, affordable higher education, and other policies that support working families. But this is the first time that the administration has used this middle class economics framework in the State of the Union and bundled these policies together.President Obama’s agenda is ambitious considering the newly GOP-controlled congress. It’s unlikely that this Congress will be in favor of increasing taxes on wealthier Americans, even if it means “lowering the taxes of working families and putting thousands of dollars back into their pockets each year.”  We’ll have more details on the President’s agenda when he releases his budget next week.