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Biden Family Plan Will Cost $700 Billion More, Penn Wharton Says

  • Budget model shows higher government spending, less revenue
  • Another survey by Moody’s sees plan almost paying for itself
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Biden's Tax Plan Just an 'Opening Bid,' Says Pgim's Hunt

President Joe Biden’s American Families Plan will cost about $700 billion more than advertised because the White House underestimated the cost of its child-care and education policies, according to a new analysis by the Penn Wharton Budget Model.

The plan, which includes child tax credits, paid leave and tuition-free community college, would boost government spending by $2.5 trillion over a decade, compared with the $1.8 trillion estimated by the White House, according to the widely used model developed at the University of Pennsylvania.