Last week, President Biden signed the Inflation Reduction Act to combat rising healthcare and energy costs, while making the largest investment in clean energy in this country’s history. Although there is much to applaud in the Inflation Reduction Act, it is missing many crucial elements of the original Build Back Better bill that would have helped support struggling families. In the face of rising prices and the many economic hardships families have had to endure throughout the pandemic, Congress cannot leave families behind by not expanding the Child Tax Credit or investing in affordable homeownership.  

The Inflation Reduction Act will help families across the country deal with some of the most pressing issues in their daily lives. Skyrocketing energy prices have been a drain on incomes, and the unprecedented investments in green energy included in the Inflation Reduction Act will help rein in energy costs for families while enabling them to transition to cleaner alternatives. Tax credits and rebates will help households afford green appliances, and investments in green banks will help support sustainable and affordable infrastructure and housing investment. Further, the provisions to strengthen Medicare will help elderly individuals deal with blatantly unjust out-of-pocket medical bills. Finally, the investments in the IRS and the establishment of corporate minimum tax for large corporations will promote a more equitable and just tax code while empowering the IRS to go after corporate tax fraud. One provision could potentially pave the way for a free and direct e-file tax return system. These critical investments address some of the most pressing challenges facing this country. But it also does not do enough to help struggling families. 

The biggest thing Congress can do right now to support families and communities of color is to reinstate the Child Tax Credit expansion from the American Rescue Plan. The expanded Child Tax Credit helped keep 3.7 million children—majority of whom were children of color—out of poverty. Families used this crucial lifeline to put food on the table, pay their bills, and invest in their children’s futures. Yet despite these facts, Senator Joe Manchin (D-WV) has opposed reinstating the Child Tax Credit expansion, stating that it has no work incentives. However, evidence since last summer has demonstrated that the refundable checks had no impact on employment. We should not deny millions of families the ability to put food on the table or support their kids’ education over make-believe concerns. Congress cannot leave American children behind, and needs to renew the expanded, refundable Child Tax Credit. 

Investments in affordable housing are long overdue. Households all over the country have been increasingly burdened by the rising costs of homeownership, which has become a significant barrier to wealth building. Further, communities of color are disproportionately impacted by rising housing costs. The original iteration of the Build Back Better Act included significant investments in the construction of affordable housing, expanded funding for down payment assistance programs, and increased funding to Community Development Financial Institutions. The absence of all these provisions from the Inflation Reduction Act seriously hinders its ability to help communities of color develop wealth in the face of rising prices. 

While Congress is on recess, now is the time to remind them that their job is incomplete if they do not support struggling families. That is why on August 23, Prosperity Now will be holding an August Recess Day of Action to push for these important provisions. Join us and other community advocates from across the country in demanding that your legislators Build Back for Justice by supporting affordable housing and renewing the Child Tax Credit expansion!  

To learn more about the work Prosperity Now does to fight for tax equity and affordable housing, join us at the 2022 Prosperity Summit this September 19-21 in Atlanta, Georgia! The theme of this year's gathering will be “Marching On: Reimagining Economic Justice for All”.