WHAT TO KNOW: ARIZONA AND THE BUILD BACK BETTER ACT

Here’s how the investments in the Build Back Better Act would benefit Arizonans: 

Housing 

  • Arizona desperately needs federal investments that lower housing costs for Arizona families. 

    • Arizona rental prices have increased 60% in the past ten years.

    • This year rents are expected to continue to rise faster in Phoenix than in any other major U.S metro area.

    • For every 100 extremely low-income renter households there are only 26 units of affordable and available housing.

    • Arizona is in the midst of an affordable housing crisis with rental rates outpacing the national average; renters make up 35% of all households in the state.

    • As of this year, Arizona faces an affordable housing shortage of up to 160,488 homes.

    • Arizonans would have to earn $22.30 an hour to afford a 2-bedroom rental home in Arizona at fair market rent. The current minimum wage in Arizona is $12.15, meaning workers would need to work 1.8 full-time jobs to afford a 2-bedroom rental home, or 1.5 full time jobs to afford a 1-bedroom rental home.

  • The Build Back Better agenda will deliver historic investments in housing that will lower costs for hardworking Arizonans. 

    • The Build Back Better agenda’s investments in affordable housing programs could help create well-over 7,000 good-paying jobs in Arizona the first year while generating millions in local revenue.

    • President Biden’s Build Back Better agenda invests $40 billion to build or rehabilitate affordable rental housing units across the country and bolster funding for programs that will lower housing costs for very- and extremely-low income renters.

    • The agenda includes $20 billion in innovative tax credits which will generate construction and rehabilitation of homes for low- and middle-income buyers across the country.

    • The National Low Income Housing Coalition estimates that constructing 100 affordable rental homes generates $11.7 million in local income, $2.2 million in taxes and other revenue for local governments, and 161 local jobs in the first year alone.

    • The Build Back Better agenda will construct or rehabilitate over 1 million affordable rental housing units nationally by expanding federal subsidies for very- and extremely-low income renters.

Affordable Higher Education 

Arizonans would benefit from significant investments in community college. 

The Build Back Better agenda would: 

  • Provide two years of free community college to Arizonans

  • Make college more affordable for low- and middle-income students at Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), and institutions such as Hispanic-serving institutions, Asian American and Native American Pacific Islander-serving institutions, and other minority-serving institutions (MSIs)

  • Increase the maximum Pell Grant to help all eligible low-income students pay for a two- or four-year degree

Free community college pays for itself while increasing enrollment and degree completions. 

Tax Cuts for Families 

The Build Back Better agenda would: 

  • Extend the Child Tax Credit.

    • Over 1.3 million children in Arizona qualified for expanded Child Tax Credit payments; the average payment per household was $444 per month.

    • Arizonans could see on average an over $3,400 tax cut per tax filer just from extending the expanded Child Tax Credit.

  • Permanently Extend Expanded Child and Dependent Care Tax Credit.

    • Working Arizona families would be permanently eligible for a fully refundable tax credit of up to $8,000 for one child or $16,000 for two or more to help cover child care expenses.

    • Arizonans could see on average an over $540 tax cut per tax filer just from making expanded Child and Dependent Care Tax Credits permanent.

  • Make the Earned Income Tax Credit Permanent.

    • 385,200 Arizona workers qualified for expanded Earned Income tax Credits to help make ends meet, with the maximum credit totaling $1,502.

    • Arizonans could see on average an over $1,000 tax cut per tax filer only from making the expanded Earned Income Tax Credit permanent.

Affordable Care

  • Arizona desperately needs the Build Back Better agenda’s historic investments, which will lower the cost of child care for working families.

  • The Build Back agenda will make life more affordable for middle-class Arizonans by lowering the cost of healthcare and prescription drugs.

    • Americans pay 2-3 times more for their prescription drugs than people in other wealthy countries.

    • According to a 2017 survey, 26% of Arizonans reported that they stopped taking a medication due to the cost.

    • Polling from 2018 shows that 80% of Arizona voters are concerned about the cost of prescription drugs and 50% are “very concerned.”

    • The Build Back Better agenda will lower prescription drug costs for Americans by allowing Medicare to negotiate drug prices.

    • By reducing health insurance premiums, the Build Back Better agenda will save 9 million people an average of $50 per person per month, and add dental, vision, and hearing coverage to Medicare.

    • By closing the Medicaid gap for low-income Americans, the President’s plan would help 4 million uninsured people gain health care coverage.

  • The Build Back agenda will increase access to affordable home and community-based care services for Arizona’s elderly and people with disabilities. 

    • Arizona has more than 1.5 million residents over the age of 60, which is 22% of the population and growing.

    • 17 of the nation’s worst-rated nursing homes are in Arizona.

    • MoneyRates rated Arizona’s health care quality in critical condition, the lowest ranking on the scale in adequate nursing home staff.

    • By 2030 there will be as many people over 60 years of age living in Arizona as there are children under the age of 17.

    • Currently, 53 million American family members provide most of the care that vulnerable seniors and people with disabilities require — without being paid and often at a significant financial and emotional cost.

    • The private insurance market is shrinking, unable to cope with the high cost of care toward the end of life: It is too expensive for most Americans, and it is too risky for most insurers. As a result, middle-class Americans who need long-term care either fall back on relatives — typically daughters, knocking millions of women out of the labor force — or deplete their resources until they qualify for Medicaid.”

Clean Energy

  • The Build Back Better agenda will strengthen Arizona’s economy.  

  • Arizona’s families will benefit from the Build Back Better agenda’s investments in clean energy. 

    • The proposal would extend and expand the definition of clean energy tax credits to help cover 30% of the energy efficiency modernization costs for Arizona homes.

    • Transitioning to clean renewable energy could prevent 52,000 premature deaths annually and save $167 billion in health costs over 35 years in the United States.

    • The Build Back Better agenda will put the country on a path towards 100% carbon-free electricity by 2035 and will also help the United States achieve its goal of reducing air pollution by 50%.

  • Arizona voters want investments in clean energy jobs. 

  • Arizona is ripe for investment in clean energy jobs. 

    • Currently, only 14% of Arizona’s total energy output comes from renewable energy sources.

    • Arizona ranks second in the nation in solar energy potential after Nevada and fourth in net generation from solar after California, Texas, and North Carolina.

    • Arizona has immense solar potential: Yuma, Phoenix, and Tucson are three of the top five sunniest cities in the United States.