Vice President Kamala Harris unveiled several economic proposals on Friday that would build on existing efforts from the Biden Administration to address higher costs of living—but with a notably more aggressive approach.
Speaking in Raleigh, N.C., Harris promised to create an “opportunity economy” through a series of bold economic measures including a first-ever federal ban on grocery price gouging, expanded down-payment assistance for first-time home buyers, and providing $6,000 per child to families for the first year of the child’s life.
[time-brightcove not-tgx=”true”]Harris said her proposals are designed to directly tackle the financial strain facing American families, aiming to curb inflationary pressures more sharply and provide immediate relief in areas like food, housing, and child care. “As President, I will be laser focused on creating opportunities for the middle class that advance their economic security, stability and dignity,” Harris said.
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The economic proposals come as inflation has fallen in recent months from a peak of 9.1% in June 2022, but remains a pressing concern for many voters. Former President Donald Trump has sought to tie Harris to the worst of inflation that Americans experienced since the start of the Biden Administration. “Harris has just declared that tackling inflation will be a day one priority for her,” Trump said in a meandering, 80-minute press conference on Thursday. “But day one for Kamala was 3-1/2 years ago. Where has she been?”
Harris drew a stark contrast to Trump in her speech by criticizing his administration’s economic policies as favoring wealthy corporations and billionaires, while positioning her agenda as combating corporate price gougers and supporting working families. Her strategy reflects a broader shift within the Democratic Party toward more progressive economic interventions, mirroring some of the policies championed by Biden while throwing in new elements aimed at addressing immediate consumer concerns.
Here are some of the most notable proposals from her economic plan.
While light on details of how it would work, Harris’ proposal to impose the first-ever federal ban on price gouging in grocery stores is designed to draw voters’ attention. Harris said she would authorize the Federal Trade Commission (FTC) to levy substantial fines against grocery chains that implement “excessive” price hikes. The campaign declined to share additional information, such as how Harris defines price gouging and excessive profits, and whether the proposal would require working with Congress to pass legislation.
“My plan will include new penalties for opportunistic companies that exploit crises and break the rules,” Harris said. “We will support smaller food businesses that are trying to play by the rules and get ahead. We will help the food industry become more competitive, because I believe competition is the lifeblood of our economy. More competition means lower prices for you and your families.”
Harris framed the measure as a response to the nearly 26% increase in grocery prices since 2019, which has left many American families struggling to manage their grocery budgets. But the idea of government intervention in grocery pricing has received a mixed response. While some progressive lawmakers praised the proposal, critics argue that price controls could lead to shortages and diminished supply, as companies might be less incentivized to stock and sell goods if their profits are capped.
On affordable housing, Harris proposed a $25,000 subsidy for first-time home buyers and putting tens of billions of dollars to facilitate the construction of three million new housing units over the next four years.
The plan includes an expansion of tax credits for housing construction and a $40 billion fund for local housing solutions, doubling the investment proposed in Biden’s recent budget. While the Harris campaign touted the efforts as critical to combat a national housing shortage exacerbated by the pandemic, critics warn that these measures could inadvertently drive up home prices by increasing demand without producing a corresponding increase in supply.
During her speech, Harris touted her record as California’s attorney general during the housing crisis, when she gained national attention as an unrelenting adversary of big banks and mortgage lenders. “I’m not new to this issue. As state attorney general, I drafted and helped pass a homeowner bill of rights, one of the first in America,” Harris said. “I know how to fight for people who are being exploited in the housing market, and I know what home ownership means. It’s more than a financial transaction.”
Harris reiterated her commitment to the provisions of Biden’s Inflation Reduction Act, which includes capping insulin prices at $35 per month and limiting annual out-of-pocket prescription drug costs to $2,000. These measures, currently in effect for Medicare beneficiaries, would be extended to all Americans under her plan.
Harris also vowed to build on the Biden Administration’s efforts to address medical debt, advocating for the cancellation of more medical debt through federal initiatives and partnerships with states. However, experts caution that while eliminating medical debt can alleviate immediate financial pressure, it does not address the underlying issues of high healthcare costs and inadequate insurance coverage.
Harris wants to use the child tax credit to provide families $6,000 in the first year of a child’s life. The new credit would build on the Biden Administration’s temporary expansion of the child tax credit during the pandemic, which research found dramatically reduced child poverty.
Harris’ proposal follows a suggestion earlier this month from Ohio Sen. J.D. Vance, Trump’s running mate, to raise the credit from $2,000 per child to $5,000. The Harris campaign emphasized that her proposal differs in that it aims to provide immediate financial relief to new parents at a time when family’s expenses are highest and many parents are forced to take time off from their job.
Harris also called for restoring the Biden Administration’s child tax credit, which had been set at $3,000 per child before its expiration at the end of 2021. It is not immediately clear how much the restoration would cost.
In her speech, Harris sought to draw a sharp contrast between her economic policies and those outlined by Trump, who has criticized her proposals as “dangerously liberal.” Trump has championed ratcheting up tariffs on America’s trade partners, extending the sweeping array of tax cuts he signed in 2017, and lowering the corporate tax rate to 15% from 21%. He has also said that he could broadly reduce inflation by boosting oil and gas production—which reached record levels under the Biden Administration—and by eliminating job-killing regulations, though he has not specified which regulations.
Harris said that Trump’s approach, including his proposal for new tariffs on imported goods, would exacerbate inflation and amount to a tax increase on working families. “I think that if you want to know who someone cares about, look at who they fight for,” Harris said. “Donald Trump fights for billionaires and large corporations. I will fight to give money back to working and middle class Americans.”
