Free lunches

20 January 2015 By Daniel Indiviglio

The U.S. president wants programs from government-funded community college to subsidized broadband. Together, they would cost at least $125 billion over a decade. That would mean more tax or borrowing. With Republicans against both, even Obama’s better ideas look impractical.

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President Barack Obama on Jan. 14 directed U.S. agencies to provide up to six weeks of leave for parents with new children and urged Congress to pass a law to do the same for all federal workers. He also called on Congress to pass the Healthy Families Act, which would require U.S. employers with at least 15 employees to provide full-time workers up to seven days of sick time annually.

The White House announced executive actions on Jan. 13 to expand the availability of high-speed broadband internet. He asked the Federal Communications Commission to strike down laws in 19 states forbidding municipalities to compete with private service providers. Subsidized loans will be available to promote investment in local broadband.

The president on Jan. 9 proposed providing free community college for American students. The White House estimates that the program would cost the federal government $60 billion over 10 years and state governments an additional $20 billion.

Obama also announced on Jan. 8 a new effort to boost U.S. home ownership. He instructed the Federal Housing Administration to cut mortgage insurance premiums by 0.5 percentage point, from 1.35 percent to 0.85 percent. The White House expects the change to reduce costs for 800,000 borrowers and allow 250,000 new buyers to purchase homes, saving them an average of $900 a year.

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