AMERICAN SHARED PROSPERITY COMPACT¶
Frequently Asked Questions¶
Published January 2026¶
GENERAL QUESTIONS¶
What is the American Shared Prosperity Compact?¶
The Compact is three separate but complementary acts that build economic infrastructure for stability across the lifecycle:
- American Payment Network Act (APNA) creates fee-free digital accounts for every American
- American Prosperity and Stability Act (APSA) provides income-adjusted monthly stability payments for adults, funded by the American Prosperity Contribution, with integrated enrollment infrastructure
- Secure Our Children Act (SOCA) delivers monthly child stability payments and birth support, funded by the Child Security Contribution
Each act solves real problems independently. Together, they provide economic security from birth through retirement.
Why three separate acts instead of one comprehensive bill?¶
Because comprehensive bills fail. One problem, one political shift, one unforeseen challenge -- and everything collapses.
The modular design means:
- Each act can pass independently in different legislative sessions
- Each delivers value without waiting for the others
- Failure of one doesn't doom the others
- Different coalitions can support different pieces
- Implementation can be phased over years as political conditions allow
This isn't about political strategy alone -- it's about building systems that work in the real world.
Do all three acts need to pass for any of them to work?¶
No. Each act is designed to function standalone:
- APNA alone provides nationwide banking access and modernizes federal payments
- APSA alone establishes adult economic stability through income-adjusted payments
- SOCA alone dramatically reduces child poverty through dedicated child investment
When multiple acts pass, they work better together -- but none depends on the others to deliver value.
How is this different from existing proposals like Universal Basic Income?¶
Several critical differences:
Income adjustment: APSP payments adjust with household income, preventing "welfare for billionaires" optics while ensuring those who need stability most receive the most support.
Lifecycle coverage: SOCA provides dedicated child investment rather than treating children as fractions of adult benefits.
Separate funding streams: APC funds adult payments; Child Security Contribution funds child payments. Programs don't compete for resources.
Integration not replacement: Works with existing systems rather than requiring wholesale replacement. Current beneficiaries protected with no-loss guarantees.
Modular design: Can pass incrementally rather than requiring revolutionary change all at once.
Dedicated funding: APC and CSC provide stable, broad-based revenue rather than deficit spending.
ABOUT APNA (Payment Network)¶
Isn't this just government-run banking?¶
No. APNA is payment infrastructure -- the rails, not the train.
Private banks, credit unions, and fintech companies connect to the network as APN Agents. They continue offering their own products and services. APNA just ensures everyone has access to basic digital payment capability regardless of income or geography.
Think of it like the interstate highway system: the government built the roads, but private companies run the trucks.
How does APNA handle physical cash access?¶
Multiple pathways:
- Full-Service APN Agents (banks with branches, credit unions, USPS) provide direct cash services
- Digital APN Agents (online banks, fintechs) partner with ATM networks or offer fee reimbursement
- Feature phone access via SMS/USSD for those without smartphones
- Public access points (libraries, community centers) for those without any devices
Technology-neutral design ensures nobody is excluded based on device ownership.
What about people who don't want digital accounts?¶
APNA doesn't eliminate cash or require anyone to use digital systems. It provides access for those who need it -- particularly the 20+ million currently unbanked Americans who pay predatory fees for basic financial services.
For federal payments, recipients can still receive paper checks if they prefer, though Network Accounts offer faster, safer delivery.
ABOUT APSA (Adult Stability Payment)¶
How much would the stability payment be?¶
The payment has two components:
- Baseline payment ($200/month) available to all eligible adults below the clean exit threshold
- Income-adjusted stability payment that provides larger amounts to lower-income households
As income rises, the income-adjusted component phases out smoothly (no benefit cliffs), ensuring work always pays. At 10x FPL (~$150,600), the clean exit threshold phases out eligibility entirely -- but this affects only about 10% of American adults. Nine in ten adults receive direct payments.
Maximum benefit at zero income is approximately $628/month ($7,530/year).
What income is counted for payment calculation?¶
Adjusted Gross Income (AGI) as reported to the IRS. This includes all taxable income sources -- wages, self-employment, capital gains, dividends, rental income, retirement distributions -- minus specific above-the-line deductions.
Why AGI? It captures total economic capacity while accounting for legitimate deductions. If it's taxable under current rules, it gets counted.
How do people who don't file taxes get enrolled?¶
APSA includes integrated enrollment infrastructure (Section 10). Non-filers can establish eligibility through a one-page Simple Form requiring only:
- Identity verification
- Asset attestation ($5 million threshold)
- Optional banking information (or Network Account request)
Simple Forms are available at SSA field offices, public libraries, post offices, online, and by mail. The Social Security Administration coordinates outreach to identify non-filers using earnings records and provides enrollment assistance.
How quickly would payments start?¶
The Rapid Deployment Framework delivers payments within months, not years:
- Tax filers with direct deposit: 90 days
- Current SSA beneficiaries: 120 days
- Non-filers with earnings history: 180 days
- Adults without tax/earnings records: 12 months
This means the majority of Americans would receive payments before the next election cycle -- creating the political constituency that ensures durability.
Won't people just stop working?¶
Evidence from pilots worldwide shows stability increases economic participation rather than reducing it. When people have a foundation:
- They start businesses
- They return to school
- They leave abusive employers
- They take productive risks
- They negotiate better wages
The APSP creates economic choice -- the freedom to pursue better opportunities rather than accepting any situation out of desperation.
What happens to existing programs like SNAP, TANF, or housing assistance?¶
During transition: Nothing. All existing programs remain active while the APSP phases in.
After demonstration of stability: Programs that provide overlapping functions may naturally consolidate -- but only where the APSP fully replaces their stabilizing function, and only with explicit no-loss guarantees for current beneficiaries.
This is gradual consolidation based on demonstrated success, not immediate replacement.
ABOUT SOCA (Child Investment)¶
How much would child payments be?¶
The Child Stability Payment provides $460/month per child -- indexed annually to the difference between the one-person and two-person federal poverty guidelines. Benefits flow to all children regardless of family income level.
Additionally, the Birth Support Payment provides $2,000 upon birth or adoption.
Do high-income families receive child payments?¶
Yes. SOCA provides benefits to all children regardless of family income -- the payment is for the child, not the parent.
This design choice reflects research showing that child development benefits from stable investment at all income levels, and that income-based phase-outs create administrative complexity, benefit cliffs, and reduced political durability.
High earners contribute more through the Child Security Contribution (especially the 3% kicker above $500k/$1M), creating natural progressivity.
What is the Child Security Contribution?¶
The CSC is a dedicated funding mechanism for SOCA:
- Base rate: 1.50% of AGI (all filers)
- Kicker rate: Additional 3.00% on AGI above $500,000 (single) / $1,000,000 (joint)
This generates approximately $270 billion annually, fully funding the ~$257 billion program with surplus flowing to the Family Security Stabilization Account.
How is this different from the current Child Tax Credit?¶
Several improvements:
- Fully refundable -- benefits flow regardless of tax liability
- Monthly payments -- families receive consistent support, not annual lump sums
- No phase-in -- the poorest families receive full benefits (current CTC requires earnings)
- Birth support -- immediate help during the vulnerable transition to parenthood
- Dedicated funding -- sustainable revenue rather than appropriations battles
FUNDING AND ECONOMICS¶
How is APSA funded?¶
The American Prosperity Contribution (APC) at 12% of goods and services sold for domestic consumption. The APC is collected at each stage of production and distribution (similar in mechanics to a value-added tax).
Revenue is allocated:
- 80% to federal APSP payments and administration
- 20% to states (~$312 billion annually) with no federal mandates
How is SOCA funded?¶
The Child Security Contribution (CSC):
- 1.50% of AGI (all filers)
- Additional 3.00% on AGI above $500k single / $1M joint
This generates ~$270 billion annually, fully funding the ~$257 billion program.
How does APSA start paying before APC revenue is fully available?¶
The Bridge Period Funding framework solves this challenge. For the first 24-30 months while APC phases in, funding comes from three sources:
| Component | Share | Mechanism |
|---|---|---|
| Bounded deficit | ~40% | Treasury borrowing with statutory payback requirements |
| Progressive bridge taxes | ~30% | Temporary taxes on high earners and corporations |
| APC pre-collection | ~30% | Early APC at 3-4% starting Month 12 |
Bridge taxes sunset as APC reaches full implementation. Bridge Period borrowing is retired over Years 6-10.
Won't the APC cause inflation?¶
No, for several reasons:
The APSP is funded by the APC, not money creation. It redistributes existing economic activity rather than expanding the money supply.
Demand-side effects are matched by supply-side incentives. Increased household stability enables better economic planning and investment.
Gradual phase-in allows markets to adjust without sudden shocks.
Stability Buffer prevents volatile changes during economic transitions.
What happens during a recession?¶
Both programs include stabilization mechanisms:
APSA: The Stability Buffer reserves revenue during growth periods to maintain payment levels during downturns -- preventing procyclical cuts precisely when households need stability most.
SOCA: The Family Security Stabilization Account provides similar protection for child payments.
The programs function as automatic stabilizers, increasing purchasing power when the economy needs it most.
IMPLEMENTATION QUESTIONS¶
What if only one or two acts pass?¶
The framework is designed for exactly this scenario:
If only APNA passes: Nationwide banking access, modernized federal payments, reduced financial exclusion. Foundation laid for future reforms.
If only APSA passes: Adult economic stability through payments, using existing IRS and Treasury systems. Creates massive constituency demanding companion legislation.
If only SOCA passes: Dramatic child poverty reduction through IRS infrastructure. Creates family constituency for broader reform.
If APNA + APSA pass (no SOCA): Full adult stability infrastructure, efficient payment delivery. Children covered through existing CTC plus APSP household effects.
If APNA + SOCA pass (no APSA): Efficient child payment delivery, nationwide banking access. Adult stability through existing programs.
If APSA + SOCA pass (no APNA): Full lifecycle stability payments through existing Treasury systems. Less efficient but fully functional.
Every combination delivers value.
Can acts pass in any order?¶
Yes. Each act includes conditional language that enables integration when companion acts become available.
Different sequences serve different political conditions:
- APSA first: Rapid constituency building through adult payments
- SOCA first: Family-values coalition, smaller fiscal footprint (~$257B vs ~$1.56T)
- APNA first: Low-controversy infrastructure foundation
The framework adapts to political reality rather than demanding optimal conditions.
How long would full implementation take?¶
If all three acts pass together: 5-6 years to full integration, with payments flowing within months.
If acts pass separately: Variable timelines, but each act begins delivering benefits independently upon passage.
The framework prioritizes rapid benefit delivery over perfect optimization. Payments start fast; efficiency improves over time.
POLITICAL QUESTIONS¶
Is this a Democratic or Republican proposal?¶
Neither. The Compact addresses real problems -- financial exclusion, economic instability, inadequate child investment -- with practical infrastructure solutions.
Different elements appeal to different coalitions:
- Infrastructure and efficiency (bipartisan)
- Economic security and worker power (progressive)
- State revenue sharing and fiscal responsibility (conservative)
- Child investment and family support (cross-ideological)
- Dedicated funding mechanisms (fiscal hawks)
The goal is not partisan ownership but durable consensus around shared prosperity.
What about state-level differences?¶
APNA establishes federal minimum standards while allowing state flexibility in implementation details.
APSA includes 20% revenue sharing to states with no federal mandates on how states use their share -- respecting federalism while ensuring stable state funding.
SOCA operates through federal IRS infrastructure but coordinates with state programs through income disregards.
Won't this create a massive new bureaucracy?¶
No. The framework leverages existing infrastructure:
- APNA uses existing Treasury, Federal Reserve, and postal systems
- APSA uses existing IRS filing and Treasury payment systems
- SOCA uses existing IRS infrastructure (similar to current CTC administration)
The goal is simplification through integration, not expansion through addition.
What makes this politically durable?¶
Three things:
Constituencies: Once implemented, each act creates powerful defenders. Millions of Americans receiving APSP payments, child benefits, or using Network Accounts become politically untouchable.
Separate funding: APC funds adults, CSC funds children. Attacking one doesn't automatically threaten the other. Opposition energy gets dispersed.
Modularity: Attacking one piece doesn't kill the others. The framework survives partial setbacks.
Social Security survived because it built an enormous constituency. The Compact uses the same strategy -- three times over.
NEXT STEPS¶
Where can I learn more?¶
Visit www.policyarchitecture.org for full documentation on the ASPC framework and each individual act.
How can I get involved?¶
For inquiries, contact info@policyarchitecture.org.
Prepared by: Albert E. Ramos Director, The American Policy Architecture Institute
Contact: info@policyarchitecture.org Website: www.policyarchitecture.org