Vice President Kamala Harris will propose sweeping new federal subsidies for parents, homebuyers, and Americans with low-incomes alongside new programs to curb increases in rent and grocery prices as she seeks to convince voters that she would act swiftly to address one of their top concerns — rising consumer costs.
The Democratic nominee, who will unveil the plan Friday afternoon in North Carolina as part of her three-month sprint to Election Day, plans to target some of the core expenses of daily life — the costs of food, housing and prescription drugs — while overhauling the federal tax code.
Harris' plan would expand the child tax credit to $3,600 from $2,000 per dependent, with a super-sized $6,000 credit for newborns. Harris also proposes expanding the Earned Income Tax Credit for low-wage workers who don't have children, and increasing subsidies for those who purchase insurance on federal health exchanges.
The vice president also envisions new price controls on groceries, and expanding limits on out-of-pocket prescription drug prices to all Americans.
Tens of billions of federal dollars would be spent to improve the supply of federal housing, while Harris is pledging to implement new rules to prevent corporate and landlord price gouging.
Earlier, Harris also proposed $25,000 assistance for first-time homebuyers.
The effort comes as the Democratic presidential nominee rapidly tries to define herself for the American public, with less than three months until the November election.
Her message is an acknowledgment that many Americans are unhappy with the economic status quo, and a marked shift from President Joe Biden's rigorous defense of their administration's economic record, which contributed to Democratic leaders' concerns that voters saw him as out of touch.
Economists are divided on the practicality and efficacy of some of Harris' proposals – and particularly price cap efforts.
The World Bank in 2022 described temporary price controls as "the second best option," given they can be inefficient and costly, though the bank acknowledges they have a role in keeping inflation expectations in check — provided they are designed well. Her $25,000 proposal to assist first-time home owners secure mortgages threatens to further push up housing prices.
Other elements of Harris' proposals would carry a substantial price tag.
The expanded child tax credit alone would likely cost hundreds of billions or trillions of dollars over the next decade, though it could garner bipartisan support: Trump's running mate, Senator JD Vance, also proposed increasing the credit to $5,000 per child.
The politically popular tax break is set to decrease in value at the end of 2025, meaning that whoever wins the White House will face pressure to revive it.
Still, advisors believe that concentrating on pocketbook issues offers a favorable frame to voters who still rank the economy among their biggest concerns. It's also an opportunity for Harris to highlight the years she spent as California attorney general advocating for consumers in price-fixing cases.
