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WASHINGTON, March 9 (Reuters) - U.S. President Joe Biden's budget proposal, released on Thursday, envisions a dramatic expansion of the federal safety net for children and families. Biden's fellow Democrats widely back his family-focused proposals: Tax credits, free preschool, subsidies for child care and paid family leave. Those two programs are due to balloon as the Baby Boom generation ages, with Biden's budget projecting they will account for 42% of federal spending in 2033, up from 34% today. Biden's budget proposal projects a deficit of $1.7 trillion for the current fiscal year. If revived, it would cost the government $259 billion in the next fiscal year -- equal to 4% of total federal spending.

☆ Workers are clamoring for pricey new weight-loss drugs like Ozempic. Companies are grappling with how to respond.
▼ + stars: | 2023-03-06 | by ( ) www.businessinsider.com time to read: +10 min

Companies that pay for workers' health insurance are grappling with how to cover the pricey drugs. Medicare, the federal program that provides health coverage for people 65 and older, doesn't cover weight-loss drugs. ArcBest already has a program to help workers lose weight through behavior changes and nutrition. Krutsch said he wants to build on that, covering the weight-loss drugs Wegovy and Saxenda for employees who aren't able to lose weight without medication. The new weight-loss drugs were in short supply in 2022, and that gave employers time to figure out how to handle them, he said.

☆ 'Huge hunger cliff' looms, warns expert: Average recipient to get $90 less in food stamps as Covid aid ends
▼ + stars: | 2023-03-02 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

watch now"That's a really tight budget if you're talking about low-income families," said Ellen Vollinger, SNAP director at the Food Research and Action Center. The Food Research and Action Center has advocated for congressional legislation to address the problem. Food bank braces for increased demandLos Angeles County Regional Food Bank workers help with food distribution in Willowbrook, California, on April 29, 2021. The food bank has been increasing its food purchases in recent weeks to anticipate increased demand for food assistance, Flood said. In the aftermath of the pandemic's onset in 2020, the food bank was serving 1 million county residents, Flood said.

☆ Millions of Americans are facing a hunger cliff as food stamps are slashed: 'The poorer you are, the poorer you eat'
▼ + stars: | 2023-03-01 | by ( Juliana Kaplan | Madison Hoff | ) www.businessinsider.com time to read: +8 min

Those emergency allotments ending will leave some with hundreds less in SNAP benefits each month. Courtesy of David WelchWelch is one of the millions of Americans suddenly contending with the end of pandemic-era expanded food stamps. The emergency allotments also helped keep many out of poverty. For some, the emergency allotments meant more than just sustenance — it also meant nutrition. The recipients Insider spoke to are just a handful among the millions of people who were still receiving the emergency allotments.

☆ A 'baby bond' bill to give every child $1,000 at birth has been reintroduced in Congress. How it would work
▼ + stars: | 2023-02-21 | by ( Lorie Konish | ) www.cnbc.com time to read: +2 min

The policy is aimed at narrowing the wealth gap, which has grown dramatically in the past 50 years, according to the lawmakers. The idea of baby bonds is getting traction in some states. Baby bond legislation has passed in California, Connecticut and Washington, D.C. Another eight states have introduced legislation, according to the Urban Institute, including Iowa, New Jersey, New York, Wisconsin, Washington, Delaware, Nevada and Massachusetts. A national policy may reduce the wealthy disparity between young white and Black Americans to a ratio of 1 to 4, according to the research. Estimates have found young white Americans have 16 times the wealth of young Black Americans, based on median incomes.

☆ U.S. food benefits for poor to shrink as pandemic provisions end
▼ + stars: | 2023-02-16 | by ( Leah Douglas | ) www.reuters.com time to read: +4 min

The Republican-controlled U.S. House of Representatives may also pursue further cuts to food assistance to shrink the U.S. deficit. “It’s going to put millions of households at risk of hunger,” said Eric Mitchell, president of the Alliance to End Hunger. The changes mean cuts of about $82 a month beginning in March for recipients of Supplemental Nutrition Assistance Program (SNAP) benefits, said Ellen Vollinger of the Food Research & Action Center, an anti-hunger group. But in December’s spending bill fight, Congress negotiated a compromise to end them in February in exchange for a new summer food program for children. More than 76% of the current farm bill’s $428 billion price tag went to food assistance programs that serve 41 million people annually.

The Republican-controlled U.S. House of Representatives may also pursue further cuts to food assistance to shrink the U.S. deficit. "It’s going to put millions of households at risk of hunger," said Eric Mitchell, president of the Alliance to End Hunger. The changes mean cuts of about $82 a month beginning in March for recipients of Supplemental Nutrition Assistance Program (SNAP) benefits, said Ellen Vollinger of the Food Research & Action Center, an anti-hunger group. But in December's spending bill fight, Congress negotiated a compromise to end them in February in exchange for a new summer food program for children. More than 76% of the current farm bill's $428 billion price tag went to food assistance programs that serve 41 million people annually.

☆ Biden taps Fed's Brainard, Bernstein for top economic jobs as part of White House reshuffle
▼ + stars: | 2023-02-14 | by ( Emma Kinery | ) www.cnbc.com time to read: +4 min

In recent weeks, Jeff Zients has replaced Ron Klain as White House chief of staff. Kate Bedingfield, White House communications director, said she plans to leave at the end of the month. The pair will have tremendous influence over economic policy at a tricky time for the United States. As NEC director, Brainard will be tasked with crafting the president's economic agenda and coordinating economic responses between various agencies. "He is an expert on worker empowerment and a worker-centric economic policy, which has long been the heart of my economic vision."

☆ 69 Republican lawmakers call for Biden's student-loan repayment and forgiveness proposals to be 'rescinded,' blasting them as 'blatantly illegal' and 'a smack in the face of taxpayers'
▼ + stars: | 2023-02-13 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

69 GOP lawmakers urged Biden to withdraw his student-loan forgiveness and repayment proposals. They said his proposal to reform income-driven repayment plans is "blatantly illegal." This proposal is reckless, fiscally irresponsible, and blatantly illegal and, as such, it should be rescinded." "Under current IDR plans, most borrowers can expect to repay some or all their debt," the analysis said. "This proposal is reckless, illegal, and will saddle hardworking Americans and future generations with unsustainable debt."

Black families face unique, racist barriers to creating wealth, from homeownership to business ownership, says Salene Hitchcock-Gear, president of individual life insurance at Prudential. To work towards closing the racial wealth gap and building generational wealth for Black Americans, it's important to understand what obstacles stand in the way. Black Americans face lower median credit scoresWhile the credit scoring system was created to take the bias out of lending, it's become yet another hurdle that prevents many Black Americans from building wealth. The bottom lineAfter many generations of being excluded from wealth-building, Black Americans still face a unique set of challenges stemming from racial discrimination. However, making homebuying and financial literacy more accessible could start to narrow the wide racial wealth gap in the US, and help Black families build generational wealth.

☆ Communities struggling with banking access give banks on wheels a spin
▼ + stars: | 2023-02-08 | by ( Rebecca Picciotto | ) www.cnbc.com time to read: +12 min

Banks on wheels are an attempt to repair the gaps within the U.S. banking landscape, which disproportionately impact Black and Hispanic communities. Banks on wheels aim to offer at least a partial solution to the increasingly deserted banking landscapes in minority communities. BankonBuffalo's mobile branch is an attempt to bridge those access gaps. Bank deserts are any areas where there are no bank branches within 10 miles of its center, according to the U.S. Census Bureau. The borough currently has 123 bank branches, according to a national bank branch location database, down from 144 in 2018.

☆ Why Biden's plan to make monthly student-loan payments cheaper could end up sticking borrowers with the same repayment struggles they've had for decades
▼ + stars: | 2023-02-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +8 min

For years, income-driven repayment plans for student-loan borrowers were not working as intended. That's why Biden introduced a proposal to reform those plans and make monthly payments cheaper. Angel said they were advised by a customer service representative at a student-loan company to stay in school to defer the loan payments. But after so many years of failures with IDR plans, Chingos said he's concerned not much will change. According to NPR, three student-loan companies weren't tracking the payments borrowers were making under the plan, and low-income borrowers who were making $0 monthly payments were hurt the most.

☆ Democrats renew push for national paid family and medical leave program
▼ + stars: | 2023-02-03 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

Had a federal paid leave policy been in place, many of those women may have been able to stay employed, she said. "Imagine if, during the pandemic, we had had a national paid leave program," Gillibrand said. The Family and Medical Insurance Leave Act, or FAMILY Act, was reintroduced by lawmakers including Gillibrand and Rep. Rosa DeLauro, D-Conn., with the goal of creating the first paid national family and medical leave program. "It is a reasonable, pragmatic way to get to paid family leave," Duckworth, who is a co-sponsor of the bill, told CNBC.com in an interview. The Education Support Professionals Family Leave Act would provide education support workers such as school bus drivers with unpaid leave under FMLA.

☆ As interest rates climb, here's why proposed caps on debt may not help reduce costs for consumers
▼ + stars: | 2023-01-24 | by ( Lorie Konish | ) www.cnbc.com time to read: +1 min

Rising credit interest rates have made it even more expensive to carry debts. But the changes did not effectively result in enhanced consumer protections, the Urban Institute's research found. The research focused on individuals with subprime credit scores because they are more likely to have higher annual percentage rates when they borrow, and therefore be affected by caps on those rates. Because lenders were already charging rates at or below 36%, the policy did not affect their rates. "It was well intentioned," said Thea Garon, associate director at the Financial Well-Being Data Hub at the Urban Institute.

☆ Over 8 million workers will get a raise on New Year's as states step in to raise their minimum wages
▼ + stars: | 2022-12-26 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +3 min

8.4 million workers will get a raise on New Year's, according to the Economic Policy Institute. 23 states are set to raise their minimum wages on January 1, due to inflation, legislation, and ballot measures. Many states have raised local minimum wages past the federal minimum of $7.25 an hour. States and cities stepping in to raise their minimum wages is not a new phenomenon. A Democratic-controlled House and Senate failed to pass a $15 minimum wage in 2021, and it's been relatively silent ever since.

☆ 'Young adults are particularly vulnerable to delinquencies' — 1 in 5 have debt in collections, new report finds
▼ + stars: | 2022-12-21 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Americans across the board are struggling with credit card debt. "Young adults are particularly vulnerable," the authors of the report wrote. Overall, credit card balances are surging, up 15% in the most recent quarter, the largest annual jump in more than 20 years. At the same time, credit card rates are now over 19%, on average — an all-time high — and still rising. "Because young adults have this unique vulnerability, it's easier for a financial shock to happen and throw you off your path," Martinchek added.

☆ After this week’s Fed rate hike, where are mortgage rates headed?
▼ + stars: | 2022-12-16 | by ( Anna Bahney | ) edition.cnn.com time to read: +8 min

Mortgage rates have run up so far and so fast this year that many would-be homebuyers can no longer afford to buy a home. By fall, mortgage rates had more than doubled, eventually topping 7% in October. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. “We have to remember mortgage rates come down much slower than they go up,” said Cohn. “Volatility increases the level of mortgage rates, compared to Treasury rates, because of the prepayment option,” said Chester Spatt, professor of finance at Carnegie Mellon University’s Tepper School of Business.

☆ More Foreclosures, Easier Mortgages Would Help Fix America's Housing Market
▼ + stars: | 2022-12-03 | by ( James Rodriguez | ) www.businessinsider.com time to read: +15 min

These standards are based on factors including the borrower's financial stability and the state of the housing market and economy. Finding the right size for the credit box is much easier said than done. A tidal wave of foreclosures followed, plunging the US housing market — and the global economy — into chaos. Even just stabilizing the credit box over time could also help smooth out some of the boom-and-bust cycles that have come to define the housing market. "If we do not address this intrinsic cyclicality, the housing market will continue to experience boom-bust cycles, leaving destruction in their wake," the paper said.

☆ Jeff Bezos plans to give away most of his fortune: Why 'it’s a big deal,' from a philanthropy expert
▼ + stars: | 2022-11-16 | by ( Tom Huddleston Jr. | ) www.cnbc.com time to read: +5 min

Jeff Bezos finally said he plans to give away the "majority" of his $122 billion fortune during his lifetime. Bezos had 'resisted developing a public philanthropic identity'Why is the 58-year-old Bezos just now committing to giving away the bulk of his fortune? For years, Soskis says, Bezos "resisted developing a public philanthropic identity," a position that the researcher believes had "become increasingly untenable" amid public criticism of Bezos' massive wealth. Gates and Buffett are the founders of the Giving Pledge. The analogy could be seen as an attempt to explain why Bezos has waited to announce his philanthropic plans, and why those plans still remain somewhat vague.

☆ A record number of parents are missing work due to a 'trifecta' of kids sick with COVID, flu, and RSV. It leaves them vulnerable as a possible recession looms.
▼ + stars: | 2022-11-15 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +3 min

104,000 Americans missed work in October due to "childcare problems." The record figure was driven by many children falling sick COVID, the flu, or RSV. In October, a record high 104,000 Americans missed work due to "childcare problems," according to Bureau of Labor Statistics data dating back to 2003. KPMG Chief Economist Diane Swonk attributed the record rise to a "trifecta of kids filling ICUs with RSV, flu and out sick to COVID." Have you missed work recently due to childcare needs and are willing to discuss how it has affected your family financially?

☆ The race to build thousands of new homes is stalling, with hurdles highest for developers of 'affordable' apartments
▼ + stars: | 2022-11-15 | by ( Dan Latu | ) www.businessinsider.com time to read: +5 min

Residential builders are feeling the pinch of higher financing costs of their own. He estimated that, in aggregate, developers like him would decrease production by 10% to 20% this year, in a potentially devastating setback for affordable housing. "The failure to act is only made clear a few years later, given the timeline of real-estate development," he said. "In a couple of years from now, we're going to look back and say this was a missed opportunity" to close the affordable housing gap. "Financing can be very targeted towards affordable development and can be subsidized much more aggressively," he said.

☆ Real-estate bigwigs harshly punished for illegally discriminating against low-income renters could be a turning point in fair-housing law enforcement
▼ + stars: | 2022-11-10 | by ( Jordan Pandy | ) www.businessinsider.com time to read: +6 min

Washington, DC, real-estate firms who discriminated against low-income renters face a record fine. The historic settlement in DC could trigger harsher penalties for unfair landlords across the country, two housing experts said. The Section 8 program offers qualifying low-income households vouchers to subsidized rents in buildings not designated as affordable housing. Sedgwick Gardens is an apartment complex that DARO Management used to manage. The same study found that only 15% of DC landlords refused to accept vouchers.

☆ More than 40% of U.S. households will owe no federal income tax, down from last year, according to a new analysis
▼ + stars: | 2022-10-28 | by ( Robert Frank | ) www.cnbc.com time to read: +4 min

More than 72 million American households will pay no federal income taxes this year, marking a large decline from last year, according to a new analysis. An estimated 72.5 million households -- or 40% of total households -- will pay no federal income taxes for tax year 2022, according to an analysis from the Tax Policy Center. The number of Americans who pay no federal income taxes remains a hot political issue, with many Republicans arguing that more Americans should pay federal income taxes and Democrats often arguing that many of the rich don't pay taxes. Yet the real drivers of so-called "non-payers" — or those who owe no federal income taxes — are tax credits and employment. "For the most part, people don't pay income tax because they have little income," he said.

☆ Fed's Bostic: U.S. needs to work through labor market "shuffle and churn"
▼ + stars: | 2022-10-18 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, Oct 18 (Reuters) - The U.S. labor market is still in the middle of adjusting to new wage and occupation trends that grew out of the pandemic as large firms raise wages and draw workers away from jobs that pay less, Atlanta Fed president Raphael Bostic said on Tuesday. Sketching out a problem that could linger as the Fed tries to battle high inflation, Bostic told an Urban Institute conference "there's a lot of shuffle and churn that's going on. That's creating a lot of tension and disequilibrium in the market place, and we've got to work through all that." The economic reopening from the pandemic has included both high levels of job quitting by workers, high vacancy rates among employers, and strong wage growth. Register now for FREE unlimited access to Reuters.com RegisterReporting by Howard SchneiderOur Standards: The Thomson Reuters Trust Principles.

☆ Citi expands program to help diverse communities reach 'transformational' homeownership milestone. Here's who qualifies
▼ + stars: | 2022-09-09 | by ( Lorie Konish | ) www.cnbc.com time to read: +7 min

Research has found that Black homeownership has declined. If the rate of Black homeownership were the same today as it was in 2000, there would be 770,000 more Black homeowners, according to the Urban Institute. watch nowEven as the U.S. homeownership rate surged to record highs in 2020, Black homeownership was still lower than it was a decade ago, according to the National Association of Realtors. Who qualifies for Citi's lending programCiti's HomeRun community affordable lending program is eligible to low- to moderate-income borrowers based on census data. In order to expand credit access for homeownership, Citi will look at alternative ways of assessing credit readiness, according to Frison.

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