The Senate gridlock’s most immediate blow to families came in January, when the supplemental Child Tax Credit that would’ve been renewed under the Build Back Better Act was left to expire, pushing 3.7 million children into poverty.
Biden cannot do an end run around Congress to tackle inequality and poverty at anywhere near the scale that would be achieved under the Build Back Better Act. And so efforts need to continue to reach an agreement on that legislation. But in the meantime, Biden should use executive authority in meaningful ways to move the ball forward.
He has already used this authority to raise the minimum wage for federal contract workers to $15 an hour. Nearly 400,000 workers, more than half of whom are Black or Latino, are getting raises averaging $3,100 thanks to this action.
Biden could go much further to use the power of the public purse to lift up American workers and reduce economic, gender, and racial inequality.
For instance, Biden could make it hard for companies with huge gaps between CEO and worker pay to get a taxpayer-funded contract. The administration could also require that federal contractors offer paid family and sick leave and commit to staying neutral in union organizing campaigns. And they could make it easier for companies with good records on racial and gender diversity to move to the head of the line in contract bidding contests.
Biden could also use his executive powers to cancel student debts held by the federal government, a move that would help all those suffering under this financial burden while making a significant step forward in narrowing the racial wealth divide. Roosevelt Institute researchers estimate that canceling up to $50,000 in federal student loan debts would increase the wealth of Black Americans by 40 percent.
The president also has the power to reduce pharmaceutical prices by giving overpriced and urgently needed drugs developed with federal assistance to generic producers.
He could also lessen the hardships faced by immigrant families by discontinuing the Trump-era Title 42 policy, which has been used to rapidly expel thousands of migrants, without giving them a chance to apply for asylum within the United States.
These are just a few examples of executive actions the Biden administration could take to build a more equitable and sustainable economy.
If Congress can’t deliver for American families, the president needs to be clear that he’s done pleading and prepared to take action on his own.