ASCE ESTIMATES
n/a
Current Grade
n/a
Trend
n/a
Funding needed to raise to a "B" Grade
PROPOSED ANNUAL INCREASE
15
Caregiving
ANNUAL CAREGIVING FUNDING
At $40 billion per year, investing in what President Biden calls the care economy is by far the largest category of new investment in the American Jobs Plan. The investment would expand the opportunities for aging Americans and those with disabilities to receive high quality, professional home and community-based services.
Both the Common Sense Coalition and the Problem Solvers Caucus join Senate Republicans in not including investments in caregiving in their infrastructure proposals.
The Case for a Big Investment
President Biden argues that the financial burden of paying for direct care givers for aging relatives and those with disabilities is too high. The Biden Administration also argues that the caregivers are underpaid and are disproportionately women of color. By investing in expanded access to affordable, high quality home or community-based care, the White House argues, we can provide the higher quality long-term care to more of those who need it, while also creating new jobs and better pay and benefits for those providing that care.
The Case Against
Not infrastructure.
The Evidence
The American Jobs Plan cites a 2020 report by the Long-Term Services and Supports (LTSS) Center at the University of Massachusetts, Boston. It found that it would cost $9.4 billion per year to raise the compensation of all direct care workers to a living wage and that doing so would lead to fewer staffing shortages, lower turnover, and higher productivity. The Biden Administration also cites a 2021 study by the Washington Center for Equitable Growth. Analyzing the impacts of actual wage increases, it found that a 10% increase in wages prevents at least 15,000 deaths while also reducing inspection violations and the costs of preventable care.