Inflation is the gradual rise in prices of goods and services over time, and it can have a significant impact on the financial well-being of families. Rising prices can erode the purchasing power of people's wages, and make it difficult for families to make ends meet.
The Inflation Reduction Act, proposed by President Biden and passed by Congress, is designed to help families cope with the effects of inflation by providing them with additional support and resources. The Inflation Reduction Act provides direct financial assistance to families, including a one-time payment of $1,400 for individuals and $2,800 for couples. This money can be used to cover the costs of basic needs such as food, housing, and healthcare. The Act also increases the Earned Income Tax Credit and Child Tax Credit for the 2021 and 2022 tax years, providing families with additional resources to help cover their expenses.
The Act also helps families manage their rising costs by making it easier for them to refinance their mortgages and student loans. The Act creates a new program that allows homeowners to refinance their mortgages at lower interest rates, and it also expands access to student loan forgiveness programs. This will help reduce the financial burden of debt, allowing families to put more money towards other essential needs.