Joe Biden's Economic Plan Explained

During both the 2020 and 2024 presidential races, Joe Biden has campaigned on economic platforms that included strategies to support the middle class, extend health care, raise taxes on the wealthy, and invest trillions of dollars in green energy infrastructure.

In his first term, Biden won his first major economic victory by signing the American Rescue Plan Act of 2021 into law. It was part of his Build Back Better agenda, which also included the American Jobs Plan and the American Families Plan. Although neither proposal ultimately passed, some of their elements were included in the Inflation Reduction Act, passed in August 2022.

Let's take a look at Biden's economic plans, as well as his administration's track record.

Biden's 2024 Presidential Campaign

Throughout the 2024 presidential race, the Biden campaign has emphasized the progress and milestones reached under the current administration's economic plan, also known as Bidenomics.

Looking forward, Biden has outlined his intentions to "finish the job" on his economic goals. This includes increasing the corporate tax rate and restoring the expanded Child Tax Credit. The president has also proposed a first-time homebuyer credit to lessen the burden of housing costs on families.

Biden has also publicly committed to opposing cuts to Social Security and Medicare. While proposing a minimum 25% tax on billionaires, he's also called for lowering of taxes for middle-class families.

Biden's 2020 Presidential Campaign

During the 2020 presidential race, Biden ran on a economic campaign aimed at delivering relief in response to the Covid-19 pandemic; spurring investments in technology, infrastructure, and research and development; boosting domestic manufacturing; raising the corporate tax rate; canceling student loan debt; and lowering medical costs.

Here's how the Biden administration has progressed toward those goals during the president's first term.

President Biden's Track Record

The American Rescue Plan

President Joe Biden formally announced his $1.9 trillion COVID-19 stimulus plan on January 14, 2021, and it passed on March 11, 2021. It included $1,400 stimulus checks, extended unemployment benefits, and a vaccine rollout.

Direct aid: This portion of the plan, worth $1 trillion, included $1,400 checks sent to individuals with adjusted gross incomes of less than $75,000 (if single or married filing separately), $150,000 (if married filing jointly), or $112,500 (for heads of households).

Additional funding was provided for eviction and foreclosure moratoriums that expired on July 31, 2021. The plan included $21.5 billion in emergency rent, almost $10 billion in mortgage assistance, and $5 billion in emergency assistance for people experiencing homelessness. Child care and food program funding and an expansion of the child care tax credit for one year were also part of the program.

Public health efforts and schools: The American Rescue Plan included funding in the amounts of:

• $20 billion for a national vaccination program
• $50 billion for a expansion of testing
• $30 billion for the Disaster Relief Fund for personal protective equipment
• $130 billion to open most schools

The funding helped governments deal with revenue shortfalls to keep front-line public workers on the job, small business grants and loans, and $20 billion for public transit agencies. Congress also approved almost $2 billion to modernize and secure federal information technology.

Health Care

During his campaign, Biden argued against the Trump administration's approach to the Affordable Care Act and campaigned to protect and build on his predecessor's health care policies.

Through the Inflation Reduction Act, Medicare was empowered to negotiate drug prices. Additionally, through the American Rescue Plan, health care plans became more affordable, driving enrollment for middle-income people and reducing the uninsured rate.

Student Debt

In August 2022, Biden called for forgiving up to $20,000 in student loan debt for borrowers whose income is less than $125,000 and who were Pell Grant recipients. For those who were not Pell Grant recipients, the cancellation amount was up to $10,000.

On June 30, 2023, the Supreme Court struck down President Biden’s attempt to forgive more than $430 billion in student loan debts. In the 6-3 opinion, the justices in the majority found the forgiveness program overstepped the bounds of federal law and usurped the power of Congress to control government spending.

In response to the decision, President Biden initiated the Saving on a Valuable Education (SAVE) Plan. SAVE is an income-driven repayment (IDR) plan that became available to student loan borrowers in August 2023 and includes the following benefits:

• Sets monthly payments at 5% of discretionary income for undergraduate borrowers
• Changes the discretionary income formula so that an estimated one million student loan borrowers will have a monthly payment of $0.
• Halts the capitalization of unpaid interest. Loan balances will not grow as long as payments are kept current.
• The plan eliminates the need for a spouse to cosign an IDR application.
  

Workers' Rights

In April 2024, the Federal Trade Commission approved a broad ban on non-compete clauses in employment contracts. Though it is slated to take effect in September 2024, it may be blocked due to pending legal challenges.

Made in America

President Biden signed into law the CHIPS and Science Act of 2022, which invested $250 billion in domestic semiconductor manufacturing and research. The Inflation Reduction Act also spurred private sector investment in U.S. clean energy manufacturing. In March 2024, the Department of Energy announced $ billion in in funding for projects aimed at decarbonization and domestic job creation in the manufacturing sector.

Infrastructure and Climate Change

The $1.2 billion Infrastructure Investment and Jobs Act provided $550 billion for rebuilding roads and bridges, improving public transit, replacing lead pipes, addressing drinking water contamination, and expanding access to high-speed internet. Biden had als promised to rejoin the Paris Agreement, which he did in January 2021.

The American Middle Class

Revitalizing the middle class and making it more racially inclusive was the cornerstone of Biden's campaign. "The country wasn’t built by Wall Street bankers, CEOs, and hedge fund managers. It was built by the great American middle class," he said at a rally kicking off his campaign.

During Biden's first term, the unemployment rate hit a record low. However, this has been tempered by persistent inflation. In response, the Biden administration has gone after firms for price-gouging, as well as the practice of charging consumers junk fees.

Rural communities make up 20% of the U.S. population and were also targeted by Biden's goals. By fighting for fair trade deals, investing $20 billion in rural broadband infrastructure, creating low-carbon manufacturing jobs, reinvesting in agricultural research, improving access to federal resources and funds for farming or small businesses, and expanding health services and medical training programs, Biden ushered in policies to assist those in areas with persistent poverty.

The Bottom Line

In the 2020 general election, Biden's campaign positions included higher taxes on the wealthy, student loan forgiveness, strengthening of workers' rights, and investments in clean energy and COVID-19 recovery, among others. During his first term as president, Biden faced many challenges, such as the ongoing pandemic and high inflation, while also signing notable legislation such as the American Rescue Plan and the Inflation Reduction Act. Throughout the 2024 election, President Biden has promised to "finish the job" on his economic commmitments.