By Julia Carpenter

On Wednesday, President Biden announced the $1.8 trillion American Families Plan. By raising taxes on the wealthiest Americans, the plan includes an expansion of the child tax credit, paid parental leave and two years of tuition-free preschool and community college—game-changers for lower-income and middle-class families.

“What I like about this plan is connecting the dots,” said Jocelyn Frye, senior fellow with the Women’s Initiative at the Center for American Progress. Ms. Frye said recognizing the importance of child care and paid leave for people to stay in the workforce is “essential to how our economy functions.”

Below, some details how Mr. Biden’s plan could affect families’ finances.

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