Three pandemic-era safety net programs affecting millions’ finances and childcare are ending.

Childcare subsidies, some SNAP benefits, and Student Loan repayment programs are all being terminated effective October 1st. A dysfunctional Congress does nothing.

Three pandemic-era safety net programs expiring

The pandemic was a real-time experiment for Keynesian Economics and Modern Monetary Theory (MMT) economics. But do not say that out loud. And guess what? It worked.

In this clip:

• Three major pandemic-era safety net programs—student loan payment pause, childcare subsidies, and extended food assistance (SNAP)—ended on October 1st, affecting tens of millions of Americans.
• The end of the student loan payment pause impacts over 40 million Americans, although a new income-driven repayment program that helps a fraction has been introduced.
• Childcare subsidies expiring could result in 3 million kids losing access to care, and approximately 70,000 childcare programs across the country might close. States like Texas will be disproportionately affected.
• Changes to food assistance will reinstate work requirements and introduce new age restrictions, possibly leading to a million people losing these benefits.
• Some economists argue that ending these programs could help combat ongoing inflation by reducing demand, a viewpoint criticized as favoring corporate profits over individual well-being.

The government intervened with subsidies and payment pauses, preventing a recession and contributing to economic stability and social welfare. These programs lifted families out of poverty, helped parents work by subsidizing childcare, and allowed for greater spending by pausing student loan payments, thereby stimulating the economy.

Yet, these significant advances in economic fairness and social welfare are now being rolled back. The justification given by some economists is that reducing these programs will ease inflationary pressures, a claim that represents a callous disregard for the immediate human cost. The implied argument here is that societal pain is a fair trade for economic stability, an opinion that is fundamentally at odds with progressive values.

An economic system that depends on keeping some in poverty, unemployed, or unsupported is a failed economic system. It must be eradicated.

Texas, for instance, will see a tremendous impact from the end of the childcare subsidy. The state lacks the robust safety nets present in other states like New York and California and stands to lose support for over 300,000 kids. This isn’t just an economic issue; it’s a matter of basic human rights and dignity.

The Biden administration has tried to mitigate some of this damage. A new income-driven student loan repayment program, known as the SAVE program, has been launched. However, only 4 million out of 40 million eligible have signed up, suggesting a significant awareness gap that needs to be urgently addressed.

Progressives must hold the line against the erasure of these pivotal programs. They are not just economic tools but instruments of social justice and equality. The ending of these programs represents not just a failure of economics but a failure of empathy and a lost opportunity for transformative social change. Therefore, it’s crucial to elevate this discussion through political activism and media channels to advocate for the continuation of such programs as pillars of a just society.

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