With markets distracted by various crypto amendments in the 'bipartisan' infrastructure bill currently working its way through the sausage-making machine in Washington, Senate Majority Leader Chuck Schumer on Monday released the full text of Democrats' $3.5 trillion budget resolution, which the Senate is expected to pass without any Republican votes as early as this week.
"Please remember that the resolution only includes 'top-line' reconciliation instructions to the committees, and that every Senator will have opportunities to shape and influence the final reconciliation bill after adoption of the Budget Resolution," Schumer wrote to the caucus.
Passing this massive bill will accelerate Democrats' plans to overhaul the country's climate, child care, and health care laws through the budget reconciliation process, via huge increases in taxation.
Notably absent from the text is any language that would lift the debt limit.
FY2022 Budget Resolution Toplines
FAMILIES: the major families plan programs proposed by Biden are funded in the HELP and Finance instructions.
- Establishes Universal Pre-K for 3 and 4 year olds and a new child care benefit for working families
- Makes Community College tuition-free for 2 years
- Extends the largest tax cut for families with children ever (CTC/EITC/CDCTC)
- Increases the Pell grant award and makes investments in HBCUs, MSIs, HSIs, TCUs, and ANNHIs
- Creates the first ever federal Paid Family and Medical Leave benefit
CLIMATE: puts US on track to meet President Biden’s 80% electricity and 50% economy-wide carbon reductions through the Agriculture, Banking, ENR, EPW, Finance, Commerce, HSGAC, and Indian Affairs instructions.
- Creates a new Clean Electricity Payment Program
- Provides clean energy, manufacturing, and transportation tax incentives and grants
- Imposes new polluter fees (methane and carbon imports)
- Invests in climate smart agriculture and forest management investments for farmers and rural communities
- Creates coastal and ocean resiliency programs
- Makes drought, wildfire, and Interior Department investments
- Provides new consumer rebates for home electrification and weatherization
- Provides Environmental justice and climate resilience
- Electrifies the federal vehicle fleet and buildings
INFRASTRUCTURE AND JOBS: invests in game-changing infrastructure projects and jobs programs not included in the BIF through the Banking, Commerce, EPW, Finance, HELP, HSGAC, Judiciary, Indian Affairs, Small Business and Veterans Affairs instructions.
- Historic level of investments in public housing, green and sustainable housing, housing production and affordability
- Establishes the first ever Civilian Climate Corps
- Invests in workforce development and job training programs to connect workers to good-paying jobs
- Provides green cards to millions of immigrant workers and families
- Funds smart technology for safe and efficient borders for trade, travel and migration
- Largest ever one-time investment in Native American infrastructure projects
- Rehabilitates aging Veterans Administration buildings and hospitals
- New economic development investments to revitalize communities and transform regions for new innovation jobs
- Invests in research and development and strengthens U.S. manufacturing supply chains
- Expands access to capital and markets for small businesses
HEALTH CARE: builds on Democrats’ goal of providing universal health care to all Americans in the Finance and HELP instructions.
- Adds a new Dental, Vision, and Hearing Benefit to the Medicare program
- Extends the recent expansion of the Affordable Care Act in the ARP
- Invests in home and community-based services to help seniors, persons with disabilities and home care workers
- Creates a new federal health program for Americans in the “Medicaid gap”
- Reduces prescription drug costs for patients and saves taxpayers hundreds of billions
The agreement calls for the $3.5 trillion in long-term investments to be fully offset by a combination of new tax revenues, health care savings, and long-term economic growth. In addition, the agreement would prohibit new taxes on families making less than $400,000 per year, and on small businesses and family farms.
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